On July 28, 2023, Robert Schottenstein, Chairman, CEO & President of M/I Homes Inc (MHO, Financial), sold 5,331 shares of the company. This move is part of a series of transactions Schottenstein has made over the past year, selling a total of 221,820 shares and purchasing none.
Robert Schottenstein has been with M/I Homes Inc for several years, leading the company in its mission to build high-quality, single-family homes. Under his leadership, the company has grown significantly, expanding its operations across multiple states.
M/I Homes Inc is a builder of single-family homes in the United States. The company operates in the construction industry, focusing on the design, construction, and sale of homes. With a market cap of $2.78 billion, M/I Homes Inc has established a strong presence in the industry.
The insider transaction history for M/I Homes Inc shows a trend of more insider sells than buys over the past year. There have been 21 insider sells and 0 insider buys in total. This could indicate that insiders believe the company's stock is currently overvalued.
On the day of Schottenstein’s recent sell, M/I Homes Inc shares were trading for $98.12 apiece. The company's price-earnings ratio is 5.85, lower than both the industry median of 9.09 and the company’s historical median price-earnings ratio. This suggests that the company's earnings are strong relative to its share price.
However, with a price of $98.12 and a GuruFocus Value of $65.77, M/I Homes Inc has a price-to-GF-Value ratio of 1.49. This indicates that the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sell by Robert Schottenstein, along with the trend of more insider sells than buys over the past year, could suggest that insiders believe M/I Homes Inc's stock is currently overvalued. However, the company's strong earnings relative to its share price and its significant presence in the industry make it a company to watch in the future.
