M/I Homes, Inc. (NYSE:MHO) Chairman, CEO, and President Robert H. Schottenstein has recently engaged in significant trading activity involving the company's shares. According to the latest filings, Schottenstein sold 19,200 common shares on April 29, 2024, at an average price of $122 per share, totaling approximately $2.34 million.
This sale came on the same day Schottenstein acquired an equivalent number of shares through the exercise of options at a price of $27.62 per share, amounting to a transaction value of $530,304. The executive's transactions resulted in a net decrease in holdings but still left him with a substantial stake in the company.
The exercised options, which vested on February 19, 2024, as noted in the footnotes of the filing, were set to expire in 2029. Following these transactions, the direct ownership by Schottenstein in M/I Homes stands at 122,951 shares. Additionally, a footnote in the filing discloses that Schottenstein indirectly owns 450,400 common shares through a family holdings company and disclaims beneficial ownership of an additional 10,000 shares owned by his spouse.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's value. The trading activity by Schottenstein, particularly the sizable sale, may be of interest to current and potential shareholders of M/I Homes, a leading operative builder based in Columbus, Ohio.
InvestingPro Insights
The recent transactions by M/I Homes, Inc. (NYSE:MHO) CEO Robert H. Schottenstein have coincided with a period in which the company's stock has shown notable performance metrics. According to real-time data from InvestingPro, M/I Homes is trading at a low earnings multiple with a P/E Ratio as of Q1 2024 at 6.48, suggesting that the stock may be undervalued compared to earnings. Adding to this, the company has experienced a significant price uptick with a 6 Month Price Total Return as of the current date in 2024 at 47.7%, reflecting a strong short-term uptrend.
InvestingPro Tips highlight that M/I Homes has been profitable over the last twelve months and analysts predict it will stay profitable this year. This could be a reassuring sign for investors following the CEO's recent sale, indicating underlying confidence in the company's financial health. Additionally, with a high return over the last year at 79.21%, M/I Homes has rewarded shareholders handsomely, despite not paying a dividend.
For those seeking to delve deeper into M/I Homes' financials and stock performance, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available, providing a comprehensive analysis of M/I Homes' market position and future outlook. Interested readers can explore these tips and take advantage of the additional insights by signing up for a subscription. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With its moderate level of debt and liquid assets surpassing short-term obligations, M/I Homes appears to be on solid financial footing. The company's operational strength is further underscored by a Gross Profit Margin of 25.9% in the last twelve months as of Q1 2024, indicating a healthy ability to generate profit from its revenues.
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