2024-04-09 13:39:33 ET
Summary
- M/I Homes, Inc. stock has rallied over 60% from its October lows despite high mortgage rates. That rally has started to fade recently, however.
- Despite a cheap P/E ratio, there are several reasons to believe the stock of this home builder will continue to succumb to additional profit taking.
- These include average mortgage rates north of seven percent, fading momentum and a noticeable recent uptick in insider selling.
- An analysis around M/I Homes follows in the paragraphs below.
Today, we put home builder M/I Homes, Inc. ( MHO ) in the spotlight. Despite average 30-Year mortgage rates still hovering near seven percent, more than double where they started 2022 at, the stock of the company has rallied just over 60% from its October lows. The shares are still cheap on a P/E basis compared to the overall market. However, there are several reasons to believe the big rise in the equity is done, and the stock could be vulnerable to some further profit taking in the months ahead....
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For further details see:
M/I Homes: 3 Reasons To Continue To Fade The Rally