M/I Homes (NYSE:MHO) Shares Down 5.3% After Earnings Miss

Key Points

• M/I Homes shares fell 5.3% to $117.52 after the company reported quarterly EPS of $2.70, missing the $3.25 analyst consensus by $0.55. Revenue of $1.08 billion also came in below estimates and declined 1.9% year over year.
• Analyst sentiment remains mixed: the stock has a consensus “Moderate Buy” rating and a $164.40 price target, despite recent upgrades and downgrades ranging from Strong Buy to Strong Sell.
• CFO Phillip Creek sold 10,000 shares for approximately $1.51 million, reducing his direct ownership by 24.44%; institutional investors collectively own 95.14% of the company.

M/I Homes, Inc. (NYSE:MHO - Get Free Report)'s share price dropped 5.3% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $118.82 and last traded at $117.52. 30,161 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 238,596 shares. The stock had previously closed at $124.06.

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

Analyst Ratings Changes

A number of brokerages have recently weighed in on MHO. Weiss Ratings restated a "hold (c)" rating on shares of M/I Homes in a research note on Wednesday, August 12th. Freedom Capital upgraded M/I Homes to a "strong-buy" rating in a research note on Wednesday, June 24th. New Street Research set a $172.00 price objective on M/I Homes in a research note on Tuesday, August 4th. Zelman & Associates lowered M/I Homes from an "outperform" rating to a "neutral" rating in a research report on Tuesday, July 7th. Finally, Zacks Research lowered M/I Homes from a "hold" rating to a "strong sell" rating in a research report on Wednesday, September 9th. Two equities 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus 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 transaction of $1,512,800.00. Following the sale, the chief financial officer directly owned 30,918 shares of the company's stock, valued at $4,677,275.04. This represents a 24.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On M/I Homes

Several large investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC bought a new stake in shares of M/I Homes during the 2nd quarter worth $26,000. Hilton Head Capital Partners LLC increased 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 valued at $40,000 after acquiring an additional 113 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in M/I Homes by 33.0% during 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 in the last quarter. Versant Capital Management Inc raised its position in M/I Homes by 133.7% during the second quarter. Versant Capital Management Inc now owns 409 shares of the construction company's stock valued at $66,000 after purchasing an additional 234 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its position in M/I Homes by 1,090.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 500 shares of the construction company's stock valued at $64,000 after purchasing an additional 458 shares in the last quarter. Hedge funds and other institutional investors own 95.14% of the company's stock.

M/I Homes Stock Performance

The company has a debt-to-equity ratio of 0.29, a current ratio of 7.65 and a quick ratio of 1.69. The company has a 50 day simple moving average of $140.63 and a 200-day simple moving average of $139.79. The stock has a market cap of $2.96 billion, a P/E ratio of 9.85 and a beta of 1.60.

M/I Homes Company Profile

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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