In a recent transaction reported to the Securities and Exchange Commission, Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), sold a significant portion of his holdings in the company. On November 25, Schottenstein sold a total of 4,867 common shares, with prices ranging from $168.75 to $169.58 per share. The total value of these transactions amounted to approximately $825,937.
Following these sales, Schottenstein's direct ownership of M/I Homes' common shares stands at 364,803. Additionally, Schottenstein indirectly holds 189,587 common shares as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. It is important to note that while his spouse owns 10,000 common shares, Schottenstein disclaims beneficial ownership of these shares.
These transactions are part of routine filings that provide transparency about insider activity within publicly traded companies, offering investors insights into the actions of company executives.
In other recent news, M/I Homes, Inc. has reported a successful third quarter with a record-breaking performance in home deliveries, revenue, and income. The company closed a record 2,271 homes in Q3, an 8% increase year-over-year, contributing to a 9% increase in total year-to-date closures. This growth also led to a 9% rise in Q3 revenue to $1.1 billion, with year-to-date revenue reaching approximately $3.3 billion. Pre-tax income for the quarter rose by 6% to $188.7 million, and the gross margin stood at 27.1%.
Despite facing macroeconomic challenges and the impact of natural disasters, M/I Homes has demonstrated resilience, particularly in its Florida operations. The company's land investments increased to $1.6 billion, signaling a strong pipeline for future development. However, the company anticipates potential upward pressure on insurance costs due to recent hurricanes.
CEO Bob Schottenstein expressed optimism for continued growth and strong performance in the coming years. M/I Homes plans to expand its Smart Series offerings and attached townhomes, which currently account for 20% of the business. Despite some anticipated downward pressure on margins due to increased incentives and rate buy-downs, the company maintains a positive outlook for the housing market.
InvestingPro Insights
The recent insider sale by M/I Homes' Chairman, CEO, and President Robert H. Schottenstein comes at a time when the company's stock has shown significant momentum. According to InvestingPro data, M/I Homes has delivered a remarkable 60.2% return over the past year, with a substantial 35.53% gain in the last six months alone. This performance aligns with an InvestingPro Tip highlighting the company's "high return over the last year."
Despite the insider sale, M/I Homes' financial metrics remain robust. The company boasts a price-to-earnings ratio of 8.53, suggesting it may be undervalued compared to industry peers. Additionally, with a market capitalization of $4.48 billion, M/I Homes has established itself as a significant player in the homebuilding sector.
Another InvestingPro Tip notes that M/I Homes "operates with a moderate level of debt," which could be seen as a positive factor in the current economic environment where interest rates have been a concern for the housing market. This prudent financial management is further supported by the fact that the company's "liquid assets exceed short term obligations," providing a solid foundation for future growth and stability.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for M/I Homes, providing a deeper understanding of the company's financial health and market position.
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