Phillip G. Creek, Executive Vice President and CFO of M/I Homes, Inc. (NYSE:MHO), recently sold a significant portion of his company shares. According to the latest SEC filing, Creek sold a total of 9,000 common shares on November 7, 2024. The sales were executed at prices ranging from $16.73 to $163.70 per share, amounting to a total value of approximately $1.49 million.
Following these transactions, Creek's direct ownership of M/I Homes shares stands at 29,223. This move comes as part of ongoing insider activities within the company, which operates in the real estate and construction sector. Investors often closely monitor such insider transactions to gauge the confidence of company executives in their firm's future performance.
In other recent news, M/I Homes reported a successful third quarter, setting new records in home deliveries, revenue, and income. The company managed to close a record 2,271 homes in Q3, an 8% increase year-over-year, contributing to a 9% rise in revenue to $1.1 billion and a 6% increase in pre-tax income to $188.7 million. M/I Homes also maintained a robust financial position, with $2.8 billion in equity and a cash balance of $720 million.
The company's mortgage segment saw significant growth, with a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million. These developments come alongside the company's stock repurchases, which amounted to $50 million.
The company's CEO, Bob Schottenstein, expressed optimism for the future, with plans to open new communities and expecting a 5% increase in average community count for 2024. Despite potential upward pressure on insurance costs and downward pressure on margins, M/I Homes maintains a strong financial position and anticipates continued growth and strong performance in 2025 and beyond.
InvestingPro Insights
While Phillip G. Creek's recent sale of M/I Homes shares might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, M/I Homes boasts a market capitalization of $4.48 billion and is trading at a relatively low P/E ratio of 8.56, suggesting potential undervaluation.
The company's stock has shown remarkable strength, with InvestingPro Tips highlighting a significant 74.19% return over the last year and a 34.09% return over the past six months. This robust performance aligns with the company's solid financials, including a gross profit margin of 26.54% and an operating income margin of 15.43% for the last twelve months as of Q3 2023.
Despite Creek's share sale, M/I Homes appears to be in a strong financial position. An InvestingPro Tip notes that the company's liquid assets exceed short-term obligations, indicating healthy liquidity. Additionally, M/I Homes operates with a moderate level of debt, which could provide financial flexibility in the dynamic real estate market.
For investors seeking a deeper understanding of M/I Homes' potential, InvestingPro offers 13 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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