Should You Avoid M/I Homes Inc (MHO)?

Page 1 of 2

M/I Homes Inc (NYSE:MHO) shareholders have witnessed a decrease in support from the world’s most elite money managers recently.

In the financial world, there are a multitude of indicators investors can use to analyze publicly traded companies. A duo of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can outpace the S&P 500 by a solid amount (see just how much).

M/I Homes Inc (NYSE:MHO)

Just as beneficial, positive insider trading activity is another way to parse down the world of equities. Obviously, there are lots of reasons for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the valuable potential of this method if you know what to do (learn more here).

With these “truths” under our belt, let’s take a glance at the recent action surrounding M/I Homes Inc (NYSE:MHO).

What does the smart money think about M/I Homes Inc (NYSE:MHO)?

At year’s end, a total of 6 of the hedge funds we track held long positions in this stock, a change of -50% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, ZWEIG DIMENNA PARTNERS, managed by Joe DiMenna, holds the most valuable position in M/I Homes Inc (NYSE:MHO). ZWEIG DIMENNA PARTNERS has a $14.5 million position in the stock, comprising 0.7% of its 13F portfolio. On ZWEIG DIMENNA PARTNERS’s heels is Cliff Asness of AQR Capital Management, with a $6.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Richard Driehaus’s Driehaus Capital, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.

Due to the fact that M/I Homes Inc (NYSE:MHO) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds who were dropping their positions entirely heading into 2013. It’s worth mentioning that Bruce Kovner’s Caxton Associates LP said goodbye to the biggest investment of all the hedgies we monitor, comprising close to $1 million in stock.. Jim Simons’s fund, Renaissance Technologies, also said goodbye to its stock, about $0.9 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 6 funds heading into 2013.

What have insiders been doing with M/I Homes Inc (NYSE:MHO)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last six-month time frame, M/I Homes Inc (NYSE:MHO) has experienced 1 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to M/I Homes Inc (NYSE:MHO). These stocks are Meritage Homes Corp (NYSE:MTH), Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN), Beazer Homes USA, Inc. (NYSE:BZH), Gafisa SA (ADR) (NYSE:GFA), and Hovnanian Enterprises, Inc. (NYSE:HOV). This group of stocks are the members of the residential construction industry and their market caps are closest to MHO’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!