Phillip G. Creek, Executive Vice President and Chief Financial Officer of M/I Homes, Inc. (NYSE:MHO), has recently sold a portion of his holdings in the company. According to a recent SEC filing, Creek sold 76 common shares on November 8, 2024, at a price of $167.38 per share, totaling approximately $12,720. Following this transaction, Creek retains ownership of 18,545 shares in the company. This transaction reflects Creek's ongoing management of his investment in the homebuilding company, which is based in Columbus (WA:CLC), Ohio.
In other recent news, M/I Homes reported a successful third quarter with record numbers in home deliveries, revenue, and income. The company announced an 8% increase in homes closed year-over-year, leading to a total of 2,271 homes for the quarter. This growth contributed to a 9% increase in total year-to-date closures and 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 also rose by 6% to $188.7 million with a gross margin of 27.1%.
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 maintained a strong financial position with $2.8 billion in equity and a cash balance of $720 million. Despite potential upward pressure on insurance costs due to recent hurricanes and expected downward pressure on margins due to increased incentives and rate buy-downs, M/I Homes remains optimistic.
The company plans to open new communities and expects a 5% increase in average community count for 2024. CEO Bob Schottenstein anticipates continued growth and strong performance in 2025 and beyond. These are among the recent developments that indicate M/I Homes' commitment to reassessing its strategies in future quarters, maintaining a positive outlook for growth in the housing market.
InvestingPro Insights
While Phillip G. Creek's recent sale of M/I Homes shares might raise eyebrows, a deeper 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 $4.17 billion, with a price-to-earnings ratio of 7.98, suggesting the stock may be undervalued relative to its earnings potential.
InvestingPro Tips highlight that M/I Homes is trading at a low P/E ratio relative to its near-term earnings growth, which could indicate an attractive entry point for investors. Moreover, the company has demonstrated a high return over the last year, with a remarkable 62.48% price total return over the past 12 months.
Despite the recent insider sale, M/I Homes' financial health appears robust. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations. This financial stability is further underscored by the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
It's worth noting that M/I Homes does not pay a dividend to shareholders, which may be a strategic decision to reinvest profits into growth opportunities. This approach seems to be paying off, as evidenced by the strong returns over the last five and ten years.
For investors seeking more comprehensive analysis, InvestingPro offers 10 additional tips for M/I Homes, providing a deeper understanding of the company's potential and risks. These insights could be particularly valuable given the stock's volatile price movements, as noted in the InvestingPro Tips.
M/I Homes, Inc. is a leading builder of single-family homes in the Midwest, Mid-Atlantic and Southern United States. The company has been in operation since 1976 and has established itself as a significant player in the homebuilding industry. M/I Homes focuses on first-time, move-up, luxury and empty nester homebuyers, offering a wide range of home designs and price points to cater to various market segments.
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