Vanguard Group Inc. Buys 3,925,148 Shares of Meritage Homes Corporation $MTH

Key Points

• Vanguard Group Inc. significantly increased its stake in Meritage Homes Corporation by 96.3%, owning approximately 11.14% of the company, valued at $567 million after purchasing nearly 3.9 million additional shares.
• A number of other hedge funds also raised their stakes in Meritage Homes, contributing to institutional ownership, which now stands at 98.44% of the company's stock.
• Various analysts have set new price targets for Meritage Homes, with UBS Group setting a target at $107, while some analysts have issued more conservative ratings with targets dropping to as low as $60.

Vanguard Group Inc. increased its position in shares of Meritage Homes Corporation (NYSE:MTH - Free Report) by 96.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 7,999,889 shares of the construction company's stock after purchasing an additional 3,925,148 shares during the quarter. Vanguard Group Inc. owned 11.14% of Meritage Homes worth $567,032,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Legacy Capital Group California Inc. acquired a new position in shares of Meritage Homes during the 1st quarter worth $568,000. New Age Alpha Advisors LLC raised its holdings in shares of Meritage Homes by 378.0% in the first quarter. New Age Alpha Advisors LLC now owns 10,431 shares of the construction company's stock worth $739,000 after acquiring an additional 8,249 shares during the last quarter. Connable Office Inc. raised its stake in Meritage Homes by 100.0% in the 1st quarter. Connable Office Inc. now owns 5,924 shares of the construction company's stock valued at $420,000 after purchasing an additional 2,962 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in Meritage Homes by 128.4% in the 1st quarter. PNC Financial Services Group Inc. now owns 6,490 shares of the construction company's stock valued at $460,000 after acquiring an additional 3,648 shares during the last quarter. Finally, LSV Asset Management raised its holdings in Meritage Homes by 100.0% in the 1st quarter. LSV Asset Management now owns 420,000 shares of the construction company's stock valued at $29,770,000 after acquiring an additional 210,000 shares during the last quarter. 98.44% of the stock is owned by institutional investors and hedge funds.

Meritage Homes Stock Up 0.3%

Shares of NYSE:MTH traded up $0.25 during midday trading on Monday, hitting $77.25. 195,431 shares of the stock were exchanged, compared to its average volume of 983,198. The company has a market capitalization of $5.50 billion, a PE ratio of 6.94 and a beta of 1.29. The business's fifty day simple moving average is $69.84 and its two-hundred day simple moving average is $69.66. The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.16 and a current ratio of 2.16. Meritage Homes Corporation has a 52-week low of $59.27 and a 52-week high of $106.99.

Meritage Homes (NYSE:MTH - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The construction company reported $2.04 EPS for the quarter, topping 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 business had revenue of $1.62 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the company posted $3.15 earnings per share. The firm's revenue for the quarter was down 4.6% on a year-over-year basis. As a group, research analysts predict that Meritage Homes Corporation will post 9.44 earnings per share for the current fiscal year.

Meritage Homes Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Monday, June 16th were given 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 2.2%. Meritage Homes's payout ratio is currently 15.47%.

Insider Buying and Selling

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

Wall Street Analyst Weigh In

Several analysts recently issued reports on MTH shares. JPMorgan Chase & Co. lowered their price target on Meritage Homes from $70.00 to $60.00 and set a "neutral" rating for the company in a report on Monday, July 28th. Evercore ISI lifted their price target on shares of Meritage Homes from $97.00 to $100.00 and gave the company an "outperform" rating in a report on Friday, July 25th. UBS Group set a $107.00 target price on Meritage Homes in a research note on Friday, April 25th. Bank of America started coverage on Meritage Homes in a research report on Monday, May 5th. They set a "buy" rating and a $82.00 price objective for the company. Finally, Zelman & Associates upgraded Meritage Homes to a "strong-buy" rating in a research report on Thursday, July 24th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, four have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $87.71.

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.