Phillip G. Creek, Executive Vice President and Chief Financial Officer of M/I Homes, Inc. (NYSE:MHO), recently sold a significant portion of the company's stock. According to a filing with the Securities and Exchange Commission, Creek disposed of 3,908 common shares on November 7, 2024. The shares were sold at prices ranging from $164.15 to $164.54, generating a total of $641,727.
Following these transactions, Creek retains ownership of 20,917 shares in the company. M/I Homes, headquartered in Columbus (WA:CLC), Ohio, is a prominent player in the real estate and construction industry. The recent stock sale by a high-ranking executive may draw attention from investors monitoring insider trading activities.
In other recent news, M/I Homes, Inc. reported a successful third quarter with record figures in home deliveries, revenue, and income. The company experienced an 8% year-over-year increase in homes closed, totaling 2,271 for the quarter. 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. Meanwhile, year-to-date revenue reached approximately $3.3 billion.
The company's mortgage segment saw a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million. M/I Homes also maintained a strong financial position with $2.8 billion in equity and a cash balance of $720 million. The company's CEO, Bob Schottenstein, anticipates continued growth and strong performance in the future.
However, the company expects potential upward pressure on insurance costs following recent hurricanes and downward pressure on margins due to increased incentives and rate buy-downs. These are recent developments that investors should take into account.
InvestingPro Insights
While Phillip G. Creek's recent stock sale might raise eyebrows, it's essential to consider M/I Homes' overall financial health and market performance. According to InvestingPro data, M/I Homes boasts a market capitalization of $4.48 billion, indicating its significant presence in the real estate and construction sector.
The company's P/E ratio of 8.56 suggests that it's trading at a relatively low earnings multiple, which could be attractive to value investors. This aligns with an InvestingPro Tip highlighting that M/I Homes is indeed "trading at a low earnings multiple."
Despite the insider sale, M/I Homes has demonstrated strong market performance. The company has seen a remarkable 74.19% price total return over the past year, and a 34.09% return in the last six months. These figures correspond with another InvestingPro Tip noting a "high return over the last year."
It's worth noting that M/I Homes operates with a moderate level of debt and its liquid assets exceed short-term obligations, as pointed out by additional InvestingPro Tips. These factors contribute to the company's financial stability, which may offset concerns about the insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for M/I Homes, providing a deeper understanding of the company's financial position and market outlook.
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