Phillip G. Creek, Executive Vice President and CFO of M/I Homes, Inc. (NYSE:MHO), executed a series of transactions involving the company's common shares on November 8, 2024. According to a recent SEC filing, Creek sold a total of 3,600 shares at prices ranging from $165.00 to $165.75 per share, amounting to approximately $1.56 million.
In addition to the sales, Creek also acquired 33,000 shares through option exercises at a price of $51.82 per share, totaling $1,710,060. Following these transactions, Creek holds 44,105 shares directly.
These moves come as part of routine financial management and are disclosed in compliance with regulatory requirements. Investors often monitor such transactions for insights into executive confidence in the company's prospects.
In other recent news, M/I Homes has reported record-breaking results for their third quarter. The company revealed an 8% increase in homes closed year-over-year, resulting in a total of 2,271 homes for the quarter. 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. The pre-tax income for the quarter also rose by 6% to $188.7 million with a gross margin of 27.1%.
These recent developments also indicate a strong financial position for M/I Homes, with $2.8 billion in equity and a cash balance of $720 million. The mortgage segment saw a 31% increase in pre-tax income to $12.9 million and a 27% revenue increase to $30 million. The company also executed stock repurchases amounting to $50 million, with $157 million remaining under the current authorization.
Looking ahead, 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 2025 and beyond. However, the company also anticipates potential upward pressure on insurance costs post-hurricane and downward pressure on margins due to increased incentives and rate buy-downs.
InvestingPro Insights
M/I Homes, Inc. (NYSE:MHO) has been demonstrating strong financial performance, as reflected in the recent insider transactions and supported by data from InvestingPro. The company's stock has shown impressive momentum, with a 62.48% price return over the past year and a 26.59% return in the last six months. This aligns with the executive's decision to exercise options and partially sell shares, potentially capitalizing on the stock's upward trajectory.
InvestingPro data reveals that MHO is trading at a P/E ratio of 7.98, which is considered low relative to its near-term earnings growth. This valuation metric suggests that the stock may be undervalued, providing context for why insiders might retain significant holdings despite some profit-taking.
Furthermore, InvestingPro Tips highlight that M/I Homes operates with a moderate level of debt and has liquid assets exceeding short-term obligations. These factors contribute to the company's financial stability, which could be reassuring for investors in light of the insider transactions.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for M/I Homes, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.