California State Teachers Retirement System Lowers Stock Position in Meritage Homes Corporation $MTH

Key Points

• California State Teachers Retirement System reduced its Meritage Homes stake by 2.7% to 81,585 shares, while institutional investors collectively owned 98.44% of the company.
• Analyst sentiment was mixed: five analysts rated the stock Buy and seven Hold, resulting in an overall Hold consensus and an average price target of $79.25.
• Meritage Homes exceeded quarterly EPS expectations ($1.42 versus $1.30) despite a 14.1% year-over-year revenue decline, and declared a $0.48 quarterly dividend, implying a 2.9% yield.

California State Teachers Retirement System decreased its position in shares of Meritage Homes Corporation (NYSE:MTH - Free Report) by 2.7% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 81,585 shares of the construction company's stock after selling 2,307 shares during the quarter. California State Teachers Retirement System owned about 0.13% of Meritage Homes worth $6,840,902 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in MTH. Bamco Inc. NY bought a new stake in Meritage Homes in the second quarter valued at approximately $112,498,000. Bank of New York Mellon Corp purchased a new position in Meritage Homes in the second quarter worth $68,873,000. Norges Bank purchased a new position in Meritage Homes during the fourth quarter worth about $63,053,000. Vaughan Nelson Investment Management L.P. increased its stake in shares of Meritage Homes by 16.3% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 675,770 shares of the construction company's stock worth $41,790,000 after buying an additional 94,570 shares during the period. Finally, Algert Global LLC grew its position in Meritage Homes by 267.8% during the 2nd quarter. Algert Global LLC now owns 356,121 shares of the construction company's stock valued at $29,861,000 after purchasing an additional 259,291 shares during the last quarter. 98.44% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have weighed in on MTH shares. Citigroup reiterated a "market outperform" rating on shares of Meritage Homes in a report on Monday, July 6th. Zelman & Associates downgraded Meritage Homes from an "outperform" rating to a "neutral" rating in a research report on Tuesday, July 7th. UBS Group reissued a "buy" rating and set a $88.00 target price (up from $86.00) on shares of Meritage Homes in a research note on Friday, July 31st. Wall Street Zen raised Meritage Homes from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $93.00 target price (up from $82.00) on shares of Meritage Homes in a research report on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $79.25.

Meritage Homes Price Performance

MTH stock traded up $0.94 during midday trading on Tuesday, hitting $65.81. The company's stock had a trading volume of 456,528 shares, compared to its average volume of 921,803. The company has a 50 day moving average of $71.53 and a two-hundred day moving average of $69.34. The firm has a market capitalization of $4.29 billion, a price-to-earnings ratio of 13.76, a price-to-earnings-growth ratio of 4.72 and a beta of 1.35. The company has a quick ratio of 1.97, a current 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.

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 for the quarter, topping the consensus estimate of $1.30 by $0.12. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. The firm had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the prior year, the firm earned $2.04 EPS. The company's revenue for the quarter was down 14.1% on a year-over-year basis. On average, analysts expect that Meritage Homes Corporation will post 5.02 EPS for the current year.

Meritage Homes Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 15th. Meritage Homes's dividend payout ratio is 40.17%.

Meritage Homes Company Profile

Meritage Homes Corporation is a residential construction company that designs, builds and sells single-family homes in the United States. The company primarily serves first-time and move-up buyers, offering homes in a range of floor plans, communities and price points. Its operations also include land acquisition and development, as well as related services such as mortgage financing and title insurance through affiliated businesses.

Meritage emphasizes energy-efficient construction and incorporates features intended to improve home comfort, durability and operating efficiency.

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