Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), has recently sold a significant portion of company stock. According to a recent filing, Schottenstein disposed of 11,426 common shares on November 25, 2024. The shares were sold at prices ranging from $170.765 to $170.985 per share, amounting to a total transaction value of approximately $1.95 million.
Following these transactions, Schottenstein retains direct ownership of 332,156 shares in the company. Additionally, he holds indirect ownership of 189,587 shares as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. It's noted that Schottenstein disclaims beneficial ownership of 10,000 shares owned by his spouse.
These transactions come as part of regular trading activities and reflect Schottenstein's ongoing management of his holdings in M/I Homes, a leading homebuilder based in Columbus (WA:CLC), Ohio.
In other recent news, M/I Homes reported a successful third quarter, setting new records in home deliveries, revenue, and income, despite facing macroeconomic challenges and natural disasters. The company saw 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 similar 9% rise in Q3 revenue, reaching $1.1 billion, with the year-to-date revenue hitting 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%.
In other developments, M/I Homes' mortgage segment experienced a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million. Meanwhile, the company's stock repurchases amounted to $50 million. Looking forward, M/I Homes plans to open new communities and expects a 5% increase in average community count for 2024. The CEO anticipates continued growth and strong performance in the upcoming years. Despite potential upward pressure on insurance costs and downward pressure on margins, the company maintains a positive outlook, supported by a strong financial position and optimism for the spring selling season.
InvestingPro Insights
The recent stock sale by M/I Homes' CEO Robert H. Schottenstein aligns with several key metrics and trends highlighted by InvestingPro. The company's stock has shown significant momentum, with InvestingPro data revealing a 60.2% price total return over the past year and a substantial 35.53% return in the last six months. This robust performance may have influenced the timing of Schottenstein's decision to sell a portion of his holdings.
Despite the CEO's stock sale, M/I Homes appears to be in a strong financial position. According to InvestingPro Tips, 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.
The company's valuation metrics also paint an interesting picture. With a P/E ratio of 8.53, M/I Homes is trading at a relatively low multiple compared to many growth stocks. This could suggest that despite the recent price appreciation, there might still be room for further growth. In fact, the InvestingPro Fair Value estimate of $179.02 indicates potential upside from the current price levels.
It's worth noting that while the stock has shown strong returns, InvestingPro Tips caution that stock price movements are quite volatile. This volatility, combined with the significant recent gains, may have factored into Schottenstein's decision to realize some of his equity value.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for M/I Homes, providing a deeper dive into the company's financial health and market position.
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