MHO Should I Buy
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M/I Homes Inc (MHO) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the technical indicators suggest a bullish trend, the overbought RSI and significant insider selling raise concerns. Additionally, the company's recent financial performance shows declining revenue, net income, and gross margins, which are negative indicators for long-term growth. Analysts have a positive outlook with a $165 price target, but caution around gross margins and earnings in the next three quarters. Given the lack of recent news or strong proprietary trading signals, it is advisable to hold off on investing in MHO at this time.
The technical indicators show a bullish trend with MACD positively expanding, bullish moving averages (SMA_5 > SMA_20 > SMA_200), and a pre-market price of $145.56 near the R1 resistance level of $146.615. However, the RSI at 82.155 indicates the stock is overbought, suggesting a potential pullback.
Analysts have set a price target of $165, citing exposure to affordable Midwest and Plains markets and the success of the Smart Series product line with above-average gross margins.
Insiders have significantly increased selling activity (up 535.64% in the last month). The company's financials for Q4 2025 show a YoY decline in revenue (-4.81%), net income (-52.07%), EPS (-49.36%), and gross margin (-26.51%). No recent news or congress trading data is available to provide additional positive momentum.
In Q4 2025, MHO's revenue dropped to $1.147 billion (-4.81% YoY), net income dropped to $63.97 million (-52.07% YoY), EPS dropped to $2.39 (-49.36% YoY), and gross margin dropped to 18.1% (-26.51% YoY). These figures indicate a significant decline in financial performance.
Citizens analyst James McCanless initiated coverage with an Outperform rating and a $165 price target. The analyst is cautious about gross margins and earnings over the next three quarters but sees catalysts in the company's exposure to affordable markets and the success of the Smart Series product line.
