Algert Global LLC Boosts Stake in Meritage Homes Corporation $MTH

Key Points

• Algert Global significantly increased its Meritage Homes stake by 267.8% in the second quarter, owning 356,121 shares worth about $29.9 million. Institutional investors collectively own 98.44% of MTH.
• Meritage Homes’ latest quarterly earnings beat expectations, with EPS of $1.42 versus the $1.30 consensus, although revenue fell 14.1% year over year to $1.41 billion.
• Analysts have a consensus “Hold” rating and a $79.25 price target, while the company’s $0.48 quarterly dividend implies a 2.6% annualized yield.

Algert Global LLC lifted its holdings in Meritage Homes Corporation (NYSE:MTH - Free Report) by 267.8% during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 356,121 shares of the construction company's stock after buying an additional 259,291 shares during the period. Meritage Homes makes up approximately 0.4% of Algert Global LLC's portfolio, making the stock its 28th biggest holding. Algert Global LLC owned 0.55% of Meritage Homes worth $29,861,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of MTH. Royal Bank of Canada raised its stake in shares of Meritage Homes by 134.3% during the 1st quarter. Royal Bank of Canada now owns 38,658 shares of the construction company's stock worth $2,740,000 after purchasing an additional 22,162 shares during the period. AQR Capital Management LLC raised its position in Meritage Homes by 51.7% in the first quarter. AQR Capital Management LLC now owns 12,937 shares of the construction company's stock worth $917,000 after acquiring an additional 4,407 shares during the period. Goldman Sachs Group Inc. boosted its stake in Meritage Homes by 58.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,058,850 shares of the construction company's stock valued at $75,051,000 after acquiring an additional 391,297 shares during the last quarter. Empowered Funds LLC boosted its stake in Meritage Homes by 111.0% in the first quarter. Empowered Funds LLC now owns 32,971 shares of the construction company's stock valued at $2,337,000 after acquiring an additional 17,343 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Meritage Homes by 102.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 319,150 shares of the construction company's stock valued at $22,621,000 after acquiring an additional 161,806 shares during the last quarter. 98.44% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

MTH has been the subject of a number of recent research reports. Weiss Ratings raised Meritage Homes from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 5th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $93.00 price objective (up from $82.00) on shares of Meritage Homes in a report on Friday, July 10th. JPMorgan Chase & Co. cut their target price on shares of Meritage Homes from $62.00 to $58.00 and set a "neutral" rating for the company in a research report on Tuesday, April 28th. Wall Street Zen upgraded shares of Meritage Homes from a "sell" rating to a "hold" rating in a research note on Saturday, July 25th. Finally, UBS Group reissued a "buy" rating and issued a $88.00 price target (up from $86.00) on shares of Meritage Homes in a research report on Friday, July 31st. Five analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Meritage Homes currently has a consensus rating of "Hold" and a consensus target price of $79.25.

Meritage Homes Price Performance

MTH stock opened at $72.55 on Tuesday. The firm has a 50 day moving average of $75.12 and a 200-day moving average of $70.42. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.37. Meritage Homes Corporation has a 12 month low of $58.03 and a 12 month high of $85.38. The firm has a market capitalization of $4.73 billion, a P/E ratio of 15.18, a price-to-earnings-growth ratio of 5.25 and a beta of 1.36.

Meritage Homes (NYSE:MTH - Get Free Report) last posted its earnings results on Wednesday, July 29th. The construction company reported $1.42 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.12. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. The business had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the prior year, the firm posted $2.04 EPS. Meritage Homes's revenue was down 14.1% on a year-over-year basis. As a group, sell-side analysts predict that Meritage Homes Corporation will post 5.04 earnings per share for the current fiscal year.

Meritage Homes Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 2.6%. The ex-dividend date is Tuesday, September 15th. Meritage Homes's payout ratio is presently 40.17%.

Meritage Homes Profile

Meritage Homes Corporation is a national homebuilder and residential developer headquartered in Scottsdale, Arizona. Founded in 1985 as Winchester Homes and later rebranded to Meritage Homes, the company specializes in designing, constructing and selling single‐family detached and attached homes. With a focus on energy efficiency and sustainable building practices, Meritage Homes markets its properties under the GreenSmart program, which integrates high‐performance features aimed at reducing long‐term energy and water consumption for homebuyers.

The company's core activities encompass land acquisition, residential community planning, home design, construction management and real estate sales.

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