Robert H. Schottenstein, the Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Schottenstein sold a total of 8,018 common shares on November 25, 2024. The shares were sold at prices ranging from $170.04 to $170.37, amounting to a total transaction value of approximately $1.36 million.
Following these transactions, Schottenstein retains direct ownership of 350,268 shares. Additionally, he indirectly owns 189,587 shares as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. His spouse also owns 10,000 shares, although Schottenstein disclaims beneficial ownership of these securities.
This sale is part of routine financial management by Schottenstein, who has been a key figure at M/I Homes, a prominent player in the real estate and construction industry. The company, headquartered in Columbus (WA:CLC), Ohio, continues to be a significant entity in the homebuilding sector.
In other recent news, M/I Homes, Inc. reported record third-quarter results, with an 8% increase in home deliveries, leading to a total of 2,271 homes. 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%. The company's mortgage segment saw a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million.
M/I Homes plans to open new communities and expects a 5% increase in average community count for 2024. The company is also expanding its Smart Series offerings and attached townhomes, which now constitute 20% of the business. Despite potential upward pressure on insurance costs post-hurricane, the company maintains a strong financial position with zero borrowings under its credit facility and a debt-to-capital ratio of 20%.
The company's confidence in the housing market is bolstered by solid household formations and targeted incentives, with a balanced product mix catering to both entry-level and move-up homebuyers. Looking forward, M/I Homes remains committed to reassessing its strategies in future quarters, maintaining a positive outlook for growth in the housing market.
InvestingPro Insights
The recent sale of shares by M/I Homes' Chairman, CEO, and President Robert H. Schottenstein comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, M/I Homes has delivered a significant 60.2% return over the past year, with a notable 35.53% increase in the last six months alone. This strong performance aligns with an InvestingPro Tip highlighting the company's "high return over the last year."
Despite the recent insider sale, M/I Homes' financial health appears robust. The company boasts a market capitalization of $4.48 billion and an attractive P/E ratio of 8.53, suggesting a potentially undervalued stock. This valuation metric is particularly interesting when considering another InvestingPro Tip that indicates analysts predict the company will remain profitable this year.
Furthermore, M/I Homes operates with a moderate level of debt, and its liquid assets exceed short-term obligations, as noted in the InvestingPro Tips. These factors contribute to the company's financial stability, which may be reassuring for investors despite the insider sale.
It's worth noting that InvestingPro offers 11 additional tips for M/I Homes, providing a more comprehensive analysis for those seeking deeper insights into the company's prospects and financial position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.