Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), executed a series of stock transactions on November 25, according to a recent SEC filing. Schottenstein sold common shares worth approximately $620,215, with sale prices ranging from $167.81 to $168.74 per share.
In addition to the sales, Schottenstein acquired common shares through the exercise of options. The total value of these acquisitions amounted to $3,037,285, with purchase prices between $47.59 and $58.73 per share. Following these transactions, Schottenstein holds a significant number of shares directly, alongside additional holdings indirectly as a trustee and beneficiary of a trust.
The transactions reflect Schottenstein's active management of his holdings in M/I Homes, a leading homebuilder headquartered in Columbus (WA:CLC), Ohio.
In other recent news, M/I Homes, Inc. reported a successful third quarter with record numbers in home deliveries, revenue, and income. The company closed a record 2,271 homes in Q3, an 8% increase year-over-year. This growth led to a 9% rise in Q3 revenue to $1.1 billion and a 6% increase in pre-tax income to $188.7 million. The company's strong financial position is reflected in its $2.8 billion in equity and a cash balance of $720 million.
M/I Homes also plans to open new communities and expects a 5% increase in average community count for 2024. The company's CEO anticipates continued growth and strong performance in 2025 and beyond. However, potential upward pressure on insurance costs post-hurricane and downward pressure on margins due to increased incentives and rate buy-downs are anticipated.
M/I Homes' mortgage segment saw a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million. The company's strategic share repurchase activity reflects a commitment to shareholder value, with no immediate plans to pay dividends. These are just some of the recent developments in the company's performance.
InvestingPro Insights
Recent data from InvestingPro sheds light on M/I Homes' financial performance and market position, providing context to Robert H. Schottenstein's recent stock transactions. The company's market capitalization stands at $4.48 billion, with a price-to-earnings ratio of 8.53, indicating a potentially undervalued stock relative to earnings.
M/I Homes has demonstrated strong financial performance, with a revenue of $4.27 billion in the last twelve months as of Q3 2023. The company's profitability is evident, with an operating income of $659.1 million and an impressive operating income margin of 15.43% for the same period.
InvestingPro Tips highlight M/I Homes' financial strength and market performance. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations, suggesting a solid financial foundation. This financial stability may have influenced Schottenstein's decision to exercise options and maintain a significant stake in the company.
The stock has shown remarkable performance, with a 60.2% total return over the past year and a significant 35.53% return in the last six months. This aligns with the InvestingPro Tip noting a "large price uptick over the last six months," which may explain Schottenstein's decision to sell some shares at current prices.
Investors should note that M/I Homes does not pay a dividend, focusing instead on growth and reinvestment. This strategy appears to be paying off, given the company's strong returns over various timeframes.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for M/I Homes, providing a comprehensive view of the company's prospects and potential risks.
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