COLUMBUS, OH—Phillip G. Creek, Executive Vice President and Chief Financial Officer of M/I Homes, Inc. (NYSE:MHO), has reported a series of stock sales according to a recent SEC filing. On November 7, Creek sold a total of 4,403 common shares, with transaction prices ranging from $163.75 to $164.14 per share. The total value of these transactions amounted to approximately $721,622.
Following these sales, Creek retains ownership of 24,822 shares in the company. These transactions are part of the standard reporting requirements for company executives and provide insight into insider trading activities. M/I Homes, a prominent player in the real estate and construction industry, continues to monitor its financial strategies through executive actions such as these.
In other recent news, M/I Homes reported record third quarter results, demonstrating resilience amidst macroeconomic challenges and natural disasters. The company saw an 8% increase in homes closed year-over-year, totaling 2,271 homes for the quarter. This growth led to a 9% increase in Q3 revenue, reaching $1.1 billion, with year-to-date revenue standing at approximately $3.3 billion. Furthermore, pre-tax income for the quarter rose by 6% to $188.7 million, with a gross margin of 27.1%.
In addition to its strong financial performance, M/I Homes maintained a robust financial position with $2.8 billion in equity and a cash balance of $720 million. The company's mortgage segment also saw significant growth, with a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million.
Looking ahead, M/I Homes plans to open new communities and expects a 5% increase in average community count for 2024. Despite potential upward pressure on insurance costs and downward pressure on margins, the company remains optimistic about its future performance, with plans for expansion and a focus on share repurchases.
InvestingPro Insights
The recent stock sales by M/I Homes' CFO Phillip G. Creek come at a time when the company's stock is showing significant momentum. According to InvestingPro data, MHO has experienced a robust 74.19% price total return over the past year, with a notable 34.09% gain in the last six months alone. This strong performance is further underscored by a 9.39% return in just the past week, indicating continued investor confidence.
Despite the recent insider selling, M/I Homes appears to be in a solid financial position. The company's P/E ratio of 8.56 suggests that it is trading at a relatively low earnings multiple compared to industry peers. This valuation metric, coupled with a price-to-book ratio of 1.54, may indicate that the stock is potentially undervalued.
InvestingPro Tips highlight that M/I Homes operates with a moderate level of debt and its liquid assets exceed short-term obligations, pointing to a healthy balance sheet. Additionally, the company has been profitable over the last twelve months, with analysts predicting continued profitability this year.
It's worth noting that while M/I Homes does not pay a dividend to shareholders, it has delivered a high return over the last decade, suggesting a focus on growth and capital appreciation. For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for MHO, providing a deeper understanding of the company's financial health and market position.
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