Have Insiders Been Selling M/I Homes, Inc. (NYSE:MHO) Shares This Year?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in M/I Homes, Inc. (NYSE:MHO).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for M/I Homes
M/I Homes Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP, J. Mason, sold US$1.7m worth of shares at a price of US$27.01 per share. That means that an insider was selling shares at slightly below the current price (US$37.23). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of J. Mason's holding.
We note that in the last year insiders divested 130k shares for a total of US$3.5m. Insiders in M/I Homes didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does M/I Homes Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that M/I Homes insiders own 2.2% of the company, worth about US$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The M/I Homes Insider Transactions Indicate?
It doesn't really mean much that no insider has traded M/I Homes shares in the last quarter. We don't take much encouragement from the transactions by M/I Homes insiders. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in M/I Homes, you should check out this free report on analyst forecasts for the company.
But note: M/I Homes may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
