Hsbc Holdings PLC Raises Stock Holdings in Meritage Homes Corporation $MTH

Key Points

• HSBC Holdings PLC boosted its Meritage Homes stake by 77.8% in the first quarter, ending with 164,915 shares worth about $10.1 million.
• Meritage Homes reported weaker-than-expected quarterly results, with EPS of $0.86 versus the $0.98 estimate and revenue of $1.12 billion versus $1.55 billion expected; revenue also fell 17.5% year over year.
• The company recently paid a quarterly dividend of $0.48 per share, equal to an annualized yield of 2.7%, while Wall Street currently has a consensus Hold rating on the stock.

Hsbc Holdings PLC grew its position in shares of Meritage Homes Corporation (NYSE:MTH - Free Report) by 77.8% in the first quarter, according to its most recent filing with the SEC. The fund owned 164,915 shares of the construction company's stock after acquiring an additional 72,174 shares during the quarter. Hsbc Holdings PLC owned about 0.25% of Meritage Homes worth $10,093,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of MTH. Salomon & Ludwin LLC raised its stake in Meritage Homes by 63.9% during the fourth quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company's stock valued at $25,000 after purchasing an additional 145 shares in the last quarter. Larson Financial Group LLC grew its stake in shares of Meritage Homes by 265.5% in the 3rd quarter. Larson Financial Group LLC now owns 402 shares of the construction company's stock worth $29,000 after buying an additional 292 shares in the last quarter. Brown Lisle Cummings Inc. purchased a new position in shares of Meritage Homes in the 4th quarter worth $39,000. EverSource Wealth Advisors LLC increased its holdings in shares of Meritage Homes by 194.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company's stock worth $47,000 after buying an additional 462 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in shares of Meritage Homes in the 4th quarter worth about $49,000. 98.44% of the stock is owned by hedge funds and other institutional investors.

Meritage Homes Price Performance

Shares of MTH stock opened at $72.25 on Thursday. Meritage Homes Corporation has a 52-week low of $58.03 and a 52-week high of $85.38. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.96 and a current ratio of 1.96. The firm has a market capitalization of $4.82 billion, a P/E ratio of 13.26, a P/E/G ratio of 3.17 and a beta of 1.35. The stock has a 50 day moving average price of $72.38 and a 200 day moving average price of $70.36.

Meritage Homes (NYSE:MTH - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The construction company reported $0.86 EPS for the quarter, missing the consensus estimate of $0.98 by ($0.12). Meritage Homes had a net margin of 6.86% and a return on equity of 8.08%. 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% compared to the same quarter last year. As a group, sell-side analysts predict that Meritage Homes Corporation will post 5 earnings per share for the current year.

Meritage Homes Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were issued a $0.48 dividend. The ex-dividend date was Tuesday, June 16th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.7%. Meritage Homes's dividend payout ratio is presently 35.23%.

Insider Buying and Selling

In related news, CAO Alison Sasser sold 1,273 shares of Meritage Homes stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $62.11, for a total transaction of $79,066.03. Following the completion of the sale, the chief accounting officer owned 7,634 shares in the company, valued at $474,147.74. This trade represents a 14.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 2.50% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Bank of America lowered their price target on shares of Meritage Homes from $74.00 to $72.00 and set a "neutral" rating for the company in a report on Monday, April 20th. UBS Group set a $86.00 price objective on Meritage Homes and gave the company a "buy" rating in a research report on Friday, April 24th. Zelman & Associates lowered Meritage Homes from an "outperform" rating to a "neutral" rating in a research note on Tuesday, July 7th. Zacks Research upgraded Meritage Homes from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Finally, JPMorgan Chase & Co. cut their target price on Meritage Homes from $62.00 to $58.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 28th. Five research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $80.22.

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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