COLUMBUS, OH—Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), recently executed a series of stock transactions, selling a total of $828,690 worth of common shares. The transactions, which occurred on November 25, 2024, involved the sale of multiple batches of shares at prices ranging from $171.155 to $171.435 per share.
Following these sales, Schottenstein retains direct ownership of 315,584 shares. Additionally, he indirectly owns 189,587 common shares as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. His spouse also holds 10,000 common shares, although Schottenstein disclaims beneficial ownership of these shares.
These transactions reflect Schottenstein's ongoing management of his holdings in M/I Homes, a prominent player in the real estate and construction industry based in Columbus (WA:CLC), Ohio.
In other recent news, M/I Homes, Inc. reported a successful third quarter, marking record numbers 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 led to a 9% rise in Q3 revenue, reaching $1.1 billion, with year-to-date revenue at approximately $3.3 billion. Pre-tax income also increased by 6% to $188.7 million, with a gross margin of 27.1%.
The company's mortgage segment saw a significant increase, with pre-tax income rising by 31% to $12.9 million and a 27% revenue increase to $30 million. Despite potential upward pressure on insurance costs following recent hurricanes, M/I Homes maintains a strong financial position with $2.8 billion in equity and a cash balance of $720 million. The company has expressed 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, with expansion plans in significant markets like Florida and Texas. Despite increased Corporate G&A expenses due to staffing and marketing efforts, M/I Homes remains committed to its strategic share repurchase activity, reflecting a commitment to shareholder value.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on M/I Homes' financial position and market performance, providing context to Robert H. Schottenstein's recent stock transactions.
M/I Homes boasts a market capitalization of $4.48 billion, with a price-to-earnings ratio of 8.53, indicating that the stock may be undervalued compared to industry peers. This valuation metric aligns with an InvestingPro Tip suggesting that the company has been highly profitable over the last twelve months.
The company's stock has demonstrated remarkable performance, with a 60.2% total return over the past year and a significant 35.53% return in the last six months. This strong momentum is further emphasized by an InvestingPro Tip highlighting the stock's "significant return over the last week," which stands at 8.6%.
Despite the recent insider selling by the CEO, M/I Homes' financial health appears robust. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations, according to InvestingPro Tips. This financial stability is crucial in the cyclical real estate and construction industry.
It's worth noting that while the stock has shown impressive returns, an InvestingPro Tip cautions that "stock price movements are quite volatile." This volatility may explain why insiders like Schottenstein might choose to realize gains through stock sales.
For investors seeking a 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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