Kovitz Investment Group Partners LLC Invests $2.28 Million in Meritage Homes Corporation $MTH

Key Points

• Kovitz Investment Group Partners LLC has acquired approximately 32,224 shares of Meritage Homes Corporation, valued at about $2.28 million in the first quarter.
• Other institutional investors, including Vanguard Group and Charles Schwab Investment Management, have significantly increased their stakes in Meritage Homes, reflecting growing confidence in the company, with institutional ownership now at 98.44%.
• Despite reporting a slight decline in revenue compared to last year, Meritage Homes exceeded analysts' earnings expectations with $2.04 EPS for the quarter, bolstering its performance amidst market fluctuations.

Kovitz Investment Group Partners LLC purchased a new position in Meritage Homes Corporation (NYSE:MTH - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 32,224 shares of the construction company's stock, valued at approximately $2,284,000.

Several other hedge funds have also recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of Meritage Homes by 96.3% in the first quarter. Vanguard Group Inc. now owns 7,999,889 shares of the construction company's stock worth $567,032,000 after purchasing an additional 3,925,148 shares during the last quarter. Greenhaven Associates Inc. raised its stake in shares of Meritage Homes by 94.1% in the first quarter. Greenhaven Associates Inc. now owns 1,434,368 shares of the construction company's stock worth $101,668,000 after purchasing an additional 695,355 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Meritage Homes by 102.7% in the first quarter. Charles Schwab Investment Management Inc. now owns 985,239 shares of the construction company's stock worth $69,834,000 after purchasing an additional 499,063 shares during the last quarter. Bank of New York Mellon Corp raised its stake in shares of Meritage Homes by 75.0% in the first quarter. Bank of New York Mellon Corp now owns 710,281 shares of the construction company's stock worth $50,345,000 after purchasing an additional 304,427 shares during the last quarter. Finally, Victory Capital Management Inc. raised its stake in shares of Meritage Homes by 95.9% in the first quarter. Victory Capital Management Inc. now owns 598,694 shares of the construction company's stock worth $42,435,000 after purchasing an additional 293,089 shares during the last quarter. Hedge funds and other institutional investors own 98.44% of the company's stock.

Meritage Homes Stock Performance

Meritage Homes stock traded up $5.2330 during mid-day trading on Friday, reaching $80.1230. 2,077,030 shares of the stock traded hands, compared to its average volume of 1,119,729. The stock has a market capitalization of $5.70 billion, a PE ratio of 7.21 and a beta of 1.29. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.16 and a quick ratio of 2.16. Meritage Homes Corporation has a 12-month low of $59.27 and a 12-month high of $106.99. The business's 50-day moving average is $70.95 and its 200-day moving average is $69.70.

Meritage Homes (NYSE:MTH - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The construction company reported $2.04 EPS for the quarter, topping analysts' consensus estimates of $1.99 by $0.05. The business had revenue of $1.62 billion during the quarter, compared to analysts' expectations of $1.60 billion. Meritage Homes had a return on equity of 12.37% and a net margin of 10.27%.The business's quarterly revenue was down 4.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.15 earnings per share. As a group, sell-side analysts predict that Meritage Homes Corporation will post 9.44 EPS for the current fiscal year.

Meritage Homes Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th will be given a $0.43 dividend. The ex-dividend date is Tuesday, September 16th. This represents a $1.72 dividend on an annualized basis and a yield of 2.1%. Meritage Homes's dividend payout ratio is presently 15.47%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on MTH. Bank of America began coverage on Meritage Homes in a research note on Monday, May 5th. They issued a "buy" rating and a $82.00 price target for the company. JPMorgan Chase & Co. reduced their price objective on Meritage Homes from $70.00 to $60.00 and set a "neutral" rating for the company in a research report on Monday, July 28th. Wedbush reduced their price objective on Meritage Homes from $103.00 to $90.00 and set a "neutral" rating for the company in a research report on Friday, July 25th. UBS Group set a $107.00 price objective on Meritage Homes in a research report on Friday, April 25th. Finally, Zelman & Associates upgraded Meritage Homes to a "strong-buy" rating in a research report on Thursday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $87.71.

Insiders Place Their Bets

In related news, Director Dennis V. Arriola purchased 2,200 shares of Meritage Homes stock in a transaction on Friday, July 25th. The stock was acquired at an average price of $70.00 per share, for a total transaction of $154,000.00. Following the completion of the transaction, the director directly owned 9,512 shares in the company, valued at $665,840. This represents a 30.09% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Joseph Keough purchased 4,000 shares of Meritage Homes stock in a transaction on Thursday, June 12th. The stock was bought at an average price of $66.16 per share, with a total value of $264,640.00. Following the transaction, the director owned 41,700 shares of the company's stock, valued at approximately $2,758,872. This represents a 10.61% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 2.20% of the company's stock.

Meritage Homes Profile

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.