MHO - Why M/I Homes Shares Plunged 12% After Q4 Earnings Then Rallied
Top residential homebuilders have been outperforming expectations this earnings season, but the market has generally seemed unimpressed with their results. Few of their share prices have moved by more than a couple of percentage points in response to their reports, despite big year-over-year earnings gains and favorable market conditions for the foreseeable future.
So it was with M/I Homes (NYSE: MHO), which reported earnings last week that missed analysts' forecasts. Traders immediately sent the shares down by about 12%, but then, the stock price promptly began to rise again. By the end of the day, it was only down by about 1.8%.
Here's why investors decided to jump back into the homebuilder.