KLP Kapitalforvaltning AS Buys 6,600 Shares of Meritage Homes Corporation (NYSE:MTH)

Key Points

• KLP Kapitalforvaltning AS significantly increased its holdings in Meritage Homes, purchasing 6,600 additional shares to reach a total of 14,100 shares, valued at approximately $999,000.
• Meritage Homes reported earnings per share of $2.04 for the recent quarter, surpassing expectations, despite a 4.6% decrease in revenue year-over-year.
• The company also announced a dividend of $0.43 per share, yielding 2.44% annually, with an overall dividend payout ratio of 15.47%.

KLP Kapitalforvaltning AS grew its position in shares of Meritage Homes Corporation (NYSE:MTH - Free Report) by 88.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 14,100 shares of the construction company's stock after purchasing an additional 6,600 shares during the period. KLP Kapitalforvaltning AS's holdings in Meritage Homes were worth $999,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in MTH. Greenhaven Associates Inc. lifted its stake in Meritage Homes by 94.1% during the first quarter. Greenhaven Associates Inc. now owns 1,434,368 shares of the construction company's stock worth $101,668,000 after purchasing an additional 695,355 shares during the last quarter. Norges Bank bought a new stake in Meritage Homes during the fourth quarter worth about $101,695,000. Groupama Asset Managment bought a new stake in Meritage Homes during the fourth quarter worth about $76,910,000. Bank of New York Mellon Corp increased its holdings in shares of Meritage Homes by 75.0% in the first quarter. Bank of New York Mellon Corp now owns 710,281 shares of the construction company's stock worth $50,345,000 after buying an additional 304,427 shares during the period. Finally, Victory Capital Management Inc. increased its holdings in shares of Meritage Homes by 95.9% in the first quarter. Victory Capital Management Inc. now owns 598,694 shares of the construction company's stock worth $42,435,000 after buying an additional 293,089 shares during the period. Institutional investors own 98.44% of the company's stock.

Insider Buying and Selling

In other news, Director Dennis V. Arriola bought 2,200 shares of Meritage Homes stock in a transaction on Friday, July 25th. The shares were purchased at an average price of $70.00 per share, for a total transaction of $154,000.00. Following the acquisition, the director owned 9,512 shares of the company's stock, valued at approximately $665,840. The trade was a 30.09% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Joseph Keough bought 4,000 shares of Meritage Homes stock in a transaction on Thursday, June 12th. The shares were purchased at an average price of $66.16 per share, for a total transaction of $264,640.00. Following the acquisition, the director directly owned 41,700 shares in the company, valued at approximately $2,758,872. This trade represents a 10.61% increase in their position. The disclosure for this purchase can be found here. 2.20% of the stock is currently owned by corporate insiders.

Meritage Homes Trading Up 4.2%

NYSE:MTH traded up $2.85 during mid-day trading on Friday, reaching $70.19. 722,548 shares of the company's stock traded hands, compared to its average volume of 989,589. Meritage Homes Corporation has a 12-month low of $59.27 and a 12-month high of $106.99. The firm has a market capitalization of $5.00 billion, a price-to-earnings ratio of 6.31 and a beta of 1.37. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.16 and a quick ratio of 2.28. The company has a 50 day moving average price of $67.77 and a 200-day moving average price of $70.34.

Meritage Homes (NYSE:MTH - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The construction company reported $2.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.99 by $0.05. Meritage Homes had a return on equity of 12.37% and a net margin of 10.27%. The company had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the previous year, the business earned $3.15 EPS. Meritage Homes's revenue was down 4.6% compared to the same quarter last year. On average, sell-side analysts predict that Meritage Homes Corporation will post 9.44 earnings per share for the current year.

Meritage Homes Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 16th were issued a dividend of $0.43 per share. The ex-dividend date was Monday, June 16th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 2.5%. Meritage Homes's dividend payout ratio is 15.47%.

Analyst Upgrades and Downgrades

MTH has been the topic of several analyst reports. Wedbush decreased their price objective on Meritage Homes from $103.00 to $90.00 and set a "neutral" rating on the stock in a report on Friday, July 25th. Bank of America initiated coverage on Meritage Homes in a report on Monday, May 5th. They issued a "buy" rating and a $82.00 price objective on the stock. JPMorgan Chase & Co. decreased their price objective on Meritage Homes from $70.00 to $60.00 and set a "neutral" rating on the stock in a report on Monday. Zelman & Associates upgraded Meritage Homes to a "strong-buy" rating in a report on Thursday, July 24th. Finally, UBS Group set a $107.00 price objective on Meritage Homes in a report on Friday, April 25th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Meritage Homes presently has a consensus rating of "Moderate Buy" and a consensus target price of $91.13.

Meritage Homes Profile

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.