Wolfe Research Lowers Earnings Estimates for Meritage Homes

Key Points

• Wolfe Research lowered Meritage Homes’ Q3 2026 EPS estimate to $1.08 from $1.14, while projecting FY2026 EPS of $4.67 and FY2027 EPS of $5.86.
• Meritage Homes’ latest quarter exceeded EPS expectations at $1.42 versus $1.30, but revenue fell 14.1% year over year to $1.41 billion and missed estimates.
• Analysts maintain a consensus “Hold” rating with a $73.56 target price; the company also pays a quarterly dividend of $0.48 per share, yielding about 3.3%.

Meritage Homes Corporation (NYSE:MTH - Free Report) - Stock analysts at Wolfe Research reduced their Q3 2026 earnings estimates for shares of Meritage Homes in a research note issued on Tuesday, October 6th. Wolfe Research analyst T. Allinson now expects that the construction company will earn $1.08 per share for the quarter, down from their prior estimate of $1.14. The consensus estimate for Meritage Homes' current full-year earnings is $4.97 per share. Wolfe Research also issued estimates for Meritage Homes' FY2026 earnings at $4.67 EPS and FY2027 earnings at $5.86 EPS.

Meritage Homes (NYSE:MTH - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.12. The company had revenue of $1.41 billion for the quarter, compared to analysts' expectations of $1.43 billion. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. The firm's revenue for the quarter was down 14.1% compared to the same quarter last year. During the same period last year, the company earned $2.04 EPS.

A number of other brokerages have also issued reports on MTH. Zacks Research lowered shares of Meritage Homes from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 8th. Truist Financial set a $72.00 price target on Meritage Homes and gave the company a "hold" rating in a report on Wednesday, September 16th. UBS Group reissued a "buy" rating and set a $88.00 price target (up from $86.00) on shares of Meritage Homes in a research note on Friday, July 31st. Citigroup restated a "market outperform" rating on shares of Meritage Homes in a report on Monday, July 6th. Finally, Evercore set a $65.00 price objective on Meritage Homes in a report on Friday, September 25th. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $73.56.

Meritage Homes Stock Performance

Shares of MTH opened at $57.78 on Tuesday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.97 and a current ratio of 1.97. The company has a market capitalization of $3.77 billion, a price-to-earnings ratio of 12.09, a PEG ratio of 4.37 and a beta of 1.33. The company's 50 day simple moving average is $67.44 and its 200 day simple moving average is $68.85. Meritage Homes has a 1 year low of $57.63 and a 1 year high of $85.38.

Meritage Homes Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Tuesday, September 15th. Meritage Homes's dividend payout ratio is presently 40.17%.

Institutional Investors Weigh In On Meritage Homes

Several institutional investors and hedge funds have recently added to or reduced their stakes in MTH. Glenmede Trust Co. NA boosted its holdings in Meritage Homes by 2.0% in the 1st quarter. Glenmede Trust Co. NA now owns 9,223 shares of the construction company's stock worth $570,000 after acquiring an additional 179 shares during the period. Assetmark Inc. grew its position in Meritage Homes by 43.9% in the first quarter. Assetmark Inc. now owns 774 shares of the construction company's stock valued at $48,000 after acquiring an additional 236 shares in the last quarter. Essential Partners LLC raised its stake in shares of Meritage Homes by 163.8% during the first quarter. Essential Partners LLC now owns 401 shares of the construction company's stock valued at $25,000 after purchasing an additional 249 shares during the period. Sequoia Financial Advisors LLC raised its stake in shares of Meritage Homes by 9.1% during the first quarter. Sequoia Financial Advisors LLC now owns 3,772 shares of the construction company's stock valued at $233,000 after purchasing an additional 316 shares during the period. Finally, GAMMA Investing LLC raised its stake in shares of Meritage Homes by 7.4% during the third quarter. GAMMA Investing LLC now owns 5,764 shares of the construction company's stock valued at $362,000 after purchasing an additional 399 shares during the period. 98.44% of the stock is currently owned by institutional investors and hedge funds.

About Meritage Homes

Meritage Homes Corporation is a residential construction company that designs and builds single-family homes in the United States. The company primarily serves entry-level and first-time move-up buyers, offering homes in a range of floor plans, sizes and price points. Its communities typically feature energy-efficient designs and include standard features intended to improve home performance, comfort and affordability.

Meritage Homes develops communities in selected markets across the South, Southeast and West, including areas of Arizona, California, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee and Texas.

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