Engineers Gate Manager LP Trims Stock Position in Meritage Homes Corporation $MTH

Key Points

• Engineers Gate Manager LP cut its Meritage Homes stake by 93.9% in the second quarter, selling 84,688 shares and retaining 5,540 shares valued at approximately $465,000. Institutional investors collectively own 98.44% of the company.
• Meritage Homes shares opened at $63.86, down 3.8%, after the company reported quarterly EPS of $1.42, above the $1.30 consensus estimate, while revenue fell 14.1% year over year to $1.41 billion.
• The company declared a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a 3.0% yield. Analysts maintain a consensus “Hold” rating with an average price target of $78.25.

Engineers Gate Manager LP trimmed its stake in Meritage Homes Corporation (NYSE:MTH - Free Report) by 93.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 5,540 shares of the construction company's stock after selling 84,688 shares during the period. Engineers Gate Manager LP's holdings in Meritage Homes were worth $465,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in MTH. IFP Advisors Inc grew its holdings in Meritage Homes by 767.6% in the 2nd quarter. IFP Advisors Inc now owns 616 shares of the construction company's stock worth $52,000 after acquiring an additional 545 shares during the last quarter. Baird Financial Group Inc. boosted its position in Meritage Homes by 4.6% during the 2nd quarter. Baird Financial Group Inc. now owns 152,184 shares of the construction company's stock valued at $12,761,000 after acquiring an additional 6,735 shares in the last quarter. Allworth Financial LP boosted its position in shares of Meritage Homes by 161.8% during the second quarter. Allworth Financial LP now owns 1,636 shares of the construction company's stock valued at $137,000 after purchasing an additional 1,011 shares in the last quarter. Paragon Capital Management Ltd bought a new stake in shares of Meritage Homes during the 2nd quarter valued at $268,000. Finally, Corient Private Wealth LP grew its holdings in Meritage Homes by 176.1% in the second quarter. Corient Private Wealth LP now owns 11,200 shares of the construction company's stock worth $939,000 after purchasing an additional 7,144 shares during the period. Institutional investors own 98.44% of the company's stock.

Meritage Homes Stock Down 3.8%

Shares of NYSE:MTH opened at $63.86 on Thursday. Meritage Homes Corporation has a 1 year low of $58.03 and a 1 year high of $85.38. The business has a 50 day simple moving average of $70.05 and a two-hundred day simple moving average of $68.93. The firm has a market capitalization of $4.16 billion, a PE ratio of 13.36, a price-to-earnings-growth ratio of 4.89 and a beta of 1.35. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.97 and a quick ratio of 1.97.

Meritage Homes (NYSE:MTH - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The construction company reported $1.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.30 by $0.12. Meritage Homes had a return on equity of 7.13% and a net margin of 6.11%.The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the previous year, the business earned $2.04 earnings per share. Meritage Homes's quarterly revenue was down 14.1% on a year-over-year basis. On average, equities analysts predict 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 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, September 15th. Meritage Homes's payout ratio is presently 40.17%.

Analysts Set New Price Targets

A number of research analysts have issued reports on MTH shares. Citigroup reiterated a "market outperform" rating on shares of Meritage Homes in a research note on Monday, July 6th. Wall Street Zen upgraded shares of Meritage Homes from a "sell" rating to a "hold" rating in a report on Saturday, July 25th. 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 research report on Friday, July 10th. Zelman & Associates lowered Meritage Homes from an "outperform" rating to a "neutral" rating in a research note on Tuesday, July 7th. Finally, Truist Financial set a $72.00 price objective on Meritage Homes and gave the company a "hold" rating in a research note on Wednesday, September 16th. Four analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $78.25.

About Meritage Homes

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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