Callodine Capital Management LP Invests $8.35 Million in Meritage Homes Corporation $MTH

Key Points

• Callodine Capital Management initiated a new position in Meritage Homes, buying 135,000 shares valued at about $8.35 million in the first quarter. The stake represented roughly 0.20% of the company.
• Meritage Homes recently reported weaker-than-expected quarterly results, with EPS of $0.86 versus the $0.98 consensus and revenue of $1.12 billion versus the $1.55 billion estimate. Revenue fell 17.5% year over year.
• The company paid a quarterly dividend of $0.48, equal to an annualized yield of 2.6%. Analysts currently have a mixed view, with a consensus rating of Hold and an average price target of $79.

Callodine Capital Management LP acquired a new stake in shares of Meritage Homes Corporation (NYSE:MTH - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 135,000 shares of the construction company's stock, valued at approximately $8,348,000. Callodine Capital Management LP owned 0.20% of Meritage Homes at the end of the most recent reporting period.

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

Meritage Homes Price Performance

NYSE:MTH opened at $72.83 on Friday. The business's 50-day simple moving average is $72.85 and its two-hundred day simple moving average is $70.42. Meritage Homes Corporation has a 52 week low of $58.03 and a 52 week high of $85.38. The stock has a market cap of $4.86 billion, a PE ratio of 13.36, a P/E/G ratio of 3.23 and a beta of 1.35. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.36.

Meritage Homes (NYSE:MTH - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The construction company reported $0.86 earnings per share for the quarter, missing analysts' consensus estimates of $0.98 by ($0.12). Meritage Homes had a return on equity of 8.08% and a net margin of 6.86%.The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same period last year, the company earned $1.69 EPS. The business's revenue was down 17.5% on a year-over-year basis. As a group, analysts forecast that Meritage Homes Corporation will post 5 EPS for the current fiscal year.

Meritage Homes Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were issued a $0.48 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $1.92 dividend on an annualized basis and a yield of 2.6%. Meritage Homes's payout ratio is currently 35.23%.

Insider Buying and Selling

In other Meritage Homes news, CAO Alison Sasser sold 1,273 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $62.11, for a total value of $79,066.03. Following the completion of the transaction, the chief accounting officer directly owned 7,634 shares in the company, valued at $474,147.74. This represents a 14.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 2.50% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MTH. Citigroup reaffirmed a "market outperform" rating on shares of Meritage Homes in a research report on Monday, July 6th. Weiss Ratings raised shares of Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, June 24th. Zacks Research upgraded shares of Meritage Homes from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $93.00 price target (up from $82.00) on shares of Meritage Homes in a report on Friday, July 10th. Finally, Zelman & Associates downgraded shares of Meritage Homes from an "outperform" rating to a "neutral" rating in a report on Tuesday, July 7th. Five analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, Meritage Homes has a consensus rating of "Hold" and an average target price of $79.00.

About Meritage Homes

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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