Meritage Homes Corporation $MTH Stock: Aberdeen Group plc Raises Holdings

Key Points

• Aberdeen Group plc increased its Meritage Homes stake by 407.7% in the third quarter, adding 1.21 million shares to hold about 2.34% of the company, valued at $94.7 million.
• Meritage Homes reported quarterly EPS of $1.11 and revenue of $1.18 billion, both below analyst estimates; revenue fell 17.5% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $72.44. The company also pays a quarterly dividend of $0.48, equivalent to a 3.0% yield at the cited share price.

Aberdeen Group plc grew its position in Meritage Homes Corporation (NYSE:MTH - Free Report) by 407.7% during the 3rd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,507,223 shares of the construction company's stock after purchasing an additional 1,210,323 shares during the period. Aberdeen Group plc owned about 2.34% of Meritage Homes worth $94,729,000 as of its most recent filing with the SEC.

Several other large investors have also made changes to their positions in the company. Essential Partners LLC lifted its holdings in Meritage Homes by 163.8% during the 1st quarter. Essential Partners LLC now owns 401 shares of the construction company's stock valued at $25,000 after purchasing an additional 249 shares during the last quarter. Parallel Advisors LLC boosted its position in Meritage Homes by 88.0% in the third quarter. Parallel Advisors LLC now owns 487 shares of the construction company's stock valued at $31,000 after buying an additional 228 shares in the last quarter. Salomon & Ludwin LLC grew its stake in Meritage Homes by 106.9% during the third quarter. Salomon & Ludwin LLC now owns 573 shares of the construction company's stock worth $36,000 after buying an additional 296 shares during the last quarter. IFP Advisors Inc grew its stake in Meritage Homes by 767.6% during the second quarter. IFP Advisors Inc now owns 616 shares of the construction company's stock worth $52,000 after buying an additional 545 shares during the last quarter. Finally, Reyes Financial Architecture Inc. bought a new stake in Meritage Homes during the third quarter worth about $39,000. Institutional investors own 98.44% of the company's stock.

Meritage Homes Trading Down 0.6%

Shares of MTH opened at $64.43 on Friday. The stock's fifty day simple moving average is $63.85 and its 200-day simple moving average is $68.69. The firm has a market capitalization of $4.15 billion, a PE ratio of 14.54, a price-to-earnings-growth ratio of 5.46 and a beta of 1.31. Meritage Homes Corporation has a 12-month low of $56.66 and a 12-month high of $85.38. The company has a quick ratio of 1.72, a current ratio of 1.72 and a debt-to-equity ratio of 0.37.

Meritage Homes (NYSE:MTH - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The construction company reported $1.11 EPS for the quarter, missing analysts' consensus estimates of $1.17 by ($0.06). The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.29 billion. Meritage Homes had a return on equity of 6.69% and a net margin of 5.79%. Meritage Homes's revenue for the quarter was down 17.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.39 earnings per share. As a group, research analysts predict that Meritage Homes Corporation will post 4.38 earnings per share for the current year.

Meritage Homes Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid 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 was Tuesday, September 15th. Meritage Homes's dividend payout ratio (DPR) is 43.34%.

Analysts Set New Price Targets

Several research firms have recently weighed in on MTH. Melius Research initiated coverage on shares of Meritage Homes in a report on Tuesday, October 6th. They set a "sell" rating and a $59.00 price objective for the company. Weiss Ratings downgraded Meritage Homes from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, November 2nd. Wall Street Zen lowered Meritage Homes from a "hold" rating to a "sell" rating in a research report on Saturday, October 31st. Evercore set a $65.00 price target on Meritage Homes in a report on Friday, September 25th. Finally, Zacks Research lowered Meritage Homes from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 8th. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $72.44.

Meritage Homes Profile

Meritage Homes Corporation is a U.S. homebuilder that designs, builds and sells single-family homes. Its communities generally serve buyers seeking entry-level and move-up housing, with home designs, layouts and finishes offered in a range of options. Founded in 1985 and headquartered in Scottsdale, Arizona, the company operates in markets across the western and southern United States, including parts of the Southeast. Its homes incorporate energy-efficient features and building practices as part of the company's focus on helping homeowners manage energy use.

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