Phillip G. Creek, Executive Vice President and CFO of M/I Homes, Inc. (NYSE:MHO), recently executed significant stock transactions. On November 5 and 6, Creek sold a total of 28,233 common shares at a price of $160 per share, amounting to a total value of approximately $4.5 million.
In addition to these sales, Creek exercised options to acquire 28,233 common shares at prices ranging from $27.62 to $42.23 per share, totaling approximately $1.07 million. Following these transactions, Creek retains ownership of 18,545 shares in the company.
These transactions reflect Creek's ongoing management of his holdings in the Columbus (WA:CLC), Ohio-based homebuilder.
In other recent news, M/I Homes, Inc. reported a successful third quarter with record numbers in home deliveries, revenue, and income. The company closed a record 2,271 homes in Q3, marking an 8% increase year over year. This growth led to a 9% rise in Q3 revenue, reaching $1.1 billion, with year-to-date revenue hitting $3.3 billion. Pre-tax income for the quarter also rose by 6% to $188.7 million, maintaining a gross margin of 27.1%.
These developments come despite potential upward pressure on insurance costs following recent hurricanes and downward pressure on margins due to increased incentives and rate buy-downs. 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 also repurchased $50 million in stock, with $157 million remaining under current authorization.
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. Despite these positive projections, the company has no current plans to introduce a dividend, focusing instead on share repurchases and pricing strategies.
InvestingPro Insights
The recent stock transactions by M/I Homes' CFO Phillip G. Creek align with the company's strong performance and market position. According to InvestingPro data, M/I Homes has a market capitalization of $4.48 billion, reflecting its significant presence in the homebuilding industry. The company's P/E ratio of 8.56 suggests that it may be undervalued compared to its peers, potentially indicating room for further growth.
InvestingPro Tips highlight that M/I Homes has experienced a high return over the last year, with a remarkable 70.37% price total return in the past 12 months. This aligns with Creek's decision to exercise options and sell shares, potentially capitalizing on the stock's strong performance. Additionally, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating a solid financial position.
It's worth noting that M/I Homes does not pay a dividend to shareholders, which may explain why executives like Creek might choose to realize gains through stock sales. The company's strong financial metrics, including a 26.54% gross profit margin and a 15.43% operating income margin in the last twelve months, further support the positive outlook for the stock.
For investors seeking more comprehensive insights, InvestingPro offers 10 additional tips for M/I Homes, providing a deeper understanding of the company's financial health and market position.
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