M/I Homes (NYSE:MHO) Sets New 52-Week Low on Disappointing Earnings

Key Points

• M/I Homes shares fell to a new 52-week low after the company reported quarterly EPS of $2.70, missing the $3.25 consensus estimate, while revenue of $1.08 billion also came in below expectations.
• Operating performance weakened, with revenue down year over year, EPS declining from $3.92, and net income falling to $66.6 million; deliveries, new contracts, and backlog sales value also decreased.
• Despite the disappointing results, M/I Homes maintained a solid balance sheet with $620.6 million in cash and low debt, and repurchased $50 million of stock. Management nevertheless warned of an increasingly difficult housing market that could pressure demand and margins.

M/I Homes, Inc. (NYSE:MHO - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $113.64 and last traded at $114.2330, with a volume of 906,681 shares changing hands. The stock had previously closed at $124.06.

The construction company reported $2.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.25 by ($0.55). M/I Homes had a net margin of 7.44% and a return on equity of 11.53%. The business had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.11 billion. During the same quarter last year, the firm earned $3.92 EPS. The firm's quarterly revenue was down 1.9% on a year-over-year basis.

Trending Headlines about M/I Homes

Here are the key news stories impacting M/I Homes this week:

• Positive Sentiment: Balance sheet remained solid: Shareholders’ equity reached a record $3.3 billion, book value per share rose to $130, and homebuilding debt-to-capital was a relatively low 18%. The company also held $620.6 million in cash. M/I Homes Reports 2026 Third Quarter Results
• Positive Sentiment: Share repurchases provided support: M/I Homes repurchased $50 million of common stock during the quarter, signaling confidence in its financial flexibility and potentially supporting per-share value. M/I Homes Reports 2026 Third Quarter Results
• Neutral Sentiment: Gross margin was 20.9%, or 21.3% excluding $4.7 million of inventory charges, suggesting underlying profitability was stronger than the reported figure but still affected by market-related costs. M/I Homes Q3 Revenue Falls 5% to $1.08 Billion
• Negative Sentiment: Quarterly earnings missed expectations: Adjusted EPS was $2.70, below consensus estimates ranging from $3.05 to $3.25. GAAP EPS was $2.56, down from $3.92 a year earlier. M/I Homes Lags Q3 Earnings and Revenue Estimates
• Negative Sentiment: Revenue and operating results declined: Revenue fell 5% year over year to $1.076 billion, while net income dropped to $66.6 million from $106.5 million. Deliveries and new contracts each declined 2%, and backlog sales value decreased 9% to $1.1 billion. M/I Homes Reports 2026 Third Quarter Results
• Negative Sentiment: Management highlighted worsening conditions: CEO comments described the housing market as “increasingly difficult,” raising concerns about demand, pricing, incentives and future margins. This cautious outlook likely outweighed the company’s strong liquidity and buyback activity. M/I Homes CEO Flags Increasingly Difficult Housing Market

Analysts Set New Price Targets

MHO has been the subject of a number of research analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of M/I Homes in a research note on Wednesday, August 12th. New Street Research set a $172.00 price objective on M/I Homes in a research report on Tuesday, August 4th. Zelman & Associates downgraded M/I Homes from an "outperform" rating to a "neutral" rating in a research report on Tuesday, July 7th. Citigroup reiterated a "market outperform" rating on shares of M/I Homes in a research note on Thursday, October 8th. Finally, Freedom Capital upgraded M/I Homes to a "strong-buy" rating in a research note on Wednesday, June 24th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $164.40.

Insider Transactions at M/I Homes

In other M/I Homes news, CFO Phillip Creek sold 10,000 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $151.28, for a total value of $1,512,800.00. Following the transaction, the chief financial officer directly owned 30,918 shares in the company, valued at $4,677,275.04. This represents a 24.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On M/I Homes

A number of institutional investors have recently modified their holdings of the stock. Corient Private Wealth LLC raised its stake in shares of M/I Homes by 2.0% during the fourth quarter. Corient Private Wealth LLC now owns 3,891 shares of the construction company's stock valued at $498,000 after acquiring an additional 76 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of M/I Homes by 33.0% in the first quarter. EverSource Wealth Advisors LLC now owns 391 shares of the construction company's stock valued at $48,000 after purchasing an additional 97 shares during the period. GAMMA Investing LLC boosted its holdings in shares of M/I Homes by 4.8% in the third quarter. GAMMA Investing LLC now owns 2,222 shares of the construction company's stock valued at $300,000 after purchasing an additional 101 shares during the period. Hilton Head Capital Partners LLC grew its stake in M/I Homes by 52.3% in the first quarter. Hilton Head Capital Partners LLC now owns 329 shares of the construction company's stock worth $40,000 after purchasing an additional 113 shares in the last quarter. Finally, Integrated Wealth Concepts LLC bought a new position in M/I Homes in the second quarter worth approximately $26,000. 95.14% of the stock is owned by hedge funds and other institutional investors.

M/I Homes Stock Performance

The firm has a 50 day moving average of $139.89 and a 200-day moving average of $139.74. The company has a market cap of $2.89 billion, a P/E ratio of 9.62 and a beta of 1.60. The company has a quick ratio of 1.69, a current ratio of 7.65 and a debt-to-equity ratio of 0.29.

About M/I Homes

M/I Homes, Inc is a residential construction company that builds and sells single-family homes for a range of buyers, including first-time, move-up and luxury-home purchasers. Its operations include land acquisition and development, home design, construction, marketing and sales, with communities offered in suburban and metropolitan markets.

The company also provides services that support the homebuying process, including mortgage financing through M/I Financial and title-related services through its affiliated operations.

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