Vaughan Nelson Investment Management L.P. Has $38.24 Million Stock Holdings in Meritage Homes Corporation $MTH

Key Points

• Vaughan Nelson raised its stake in Meritage Homes by 12.3% to 581,200 shares, now worth $38.24 million and representing about 0.83% of the company; institutional investors own roughly 98.44% of the stock.
• Meritage beat EPS estimates for the quarter ($1.67 vs. $1.55) despite revenue falling 11.9% year-over-year to $1.44 billion; the stock trades at a P/E of 9.5, market cap of $4.01 billion, and has a consensus target of $84.33 ("Moderate Buy").
• The company raised its quarterly dividend to $0.48 (annualized $1.92, ~3.2% yield), while insiders sold 47,622 shares in the past three months and now own about 2.20% of the stock.

Vaughan Nelson Investment Management L.P. raised its position in Meritage Homes Corporation (NYSE:MTH - Free Report) by 12.3% during the 4th quarter, according to its most recent filing with the SEC. The institutional investor owned 581,200 shares of the construction company's stock after acquiring an additional 63,770 shares during the period. Vaughan Nelson Investment Management L.P. owned about 0.83% of Meritage Homes worth $38,243,000 as of its most recent filing with the SEC.

Other hedge funds also recently made changes to their positions in the company. Alps Advisors Inc. acquired a new position in Meritage Homes during the third quarter worth $4,731,000. Lodge Hill Capital LLC acquired a new stake in Meritage Homes in the 3rd quarter valued at $21,729,000. Principal Financial Group Inc. lifted its position in Meritage Homes by 13.1% during the 3rd quarter. Principal Financial Group Inc. now owns 402,664 shares of the construction company's stock worth $29,165,000 after buying an additional 46,554 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its stake in shares of Meritage Homes by 90.1% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 119,754 shares of the construction company's stock worth $8,804,000 after buying an additional 56,746 shares during the last quarter. Finally, Rafferty Asset Management LLC boosted its stake in shares of Meritage Homes by 84.2% during the 3rd quarter. Rafferty Asset Management LLC now owns 107,394 shares of the construction company's stock worth $7,779,000 after buying an additional 49,101 shares during the last quarter. 98.44% of the stock is owned by institutional investors.

Meritage Homes Stock Performance

Shares of NYSE MTH opened at $60.06 on Tuesday. Meritage Homes Corporation has a 12 month low of $58.03 and a 12 month high of $84.74. The stock has a 50 day moving average of $70.65 and a 200-day moving average of $70.49. The company has a current ratio of 2.10, a quick ratio of 2.10 and a debt-to-equity ratio of 0.35. The company has a market capitalization of $4.01 billion, a P/E ratio of 9.50, a P/E/G ratio of 1.06 and a beta of 1.46.

Meritage Homes (NYSE:MTH - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The construction company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.12. Meritage Homes had a net margin of 7.73% and a return on equity of 9.28%. The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.51 billion. During the same period in the previous year, the business posted $4.72 earnings per share. The company's revenue for the quarter was down 11.9% compared to the same quarter last year. As a group, equities research analysts predict that Meritage Homes Corporation will post 9.44 EPS for the current year.

Meritage Homes Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be paid a $0.48 dividend. This is an increase from Meritage Homes's previous quarterly dividend of $0.43. The ex-dividend date is Tuesday, March 17th. This represents a $1.92 dividend on an annualized basis and a yield of 3.2%. Meritage Homes's dividend payout ratio (DPR) is currently 30.38%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Meritage Homes in a research report on Monday, December 29th. Citizens Jmp started coverage on Meritage Homes in a research note on Wednesday, January 7th. They issued a "market outperform" rating and a $90.00 price target for the company. Wall Street Zen raised Meritage Homes from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Evercore set a $77.00 price objective on Meritage Homes and gave the stock an "in-line" rating in a research note on Thursday, December 4th. Finally, Bank of America reissued a "neutral" rating and issued a $82.00 price objective (up from $75.00) on shares of Meritage Homes in a report on Friday, January 16th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Meritage Homes currently has an average rating of "Moderate Buy" and a consensus target price of $84.33.

Insider Buying and Selling at Meritage Homes

In other news, CEO Phillippe Lord sold 32,820 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.49, for a total transaction of $2,510,401.80. Following the transaction, the chief executive officer owned 260,389 shares in the company, valued at approximately $19,917,154.61. This trade represents a 11.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Hilla Sferruzza sold 10,928 shares of Meritage Homes stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.35, for a total value of $834,352.80. Following the sale, the chief financial officer directly owned 124,961 shares of the company's stock, valued at approximately $9,540,772.35. The trade was a 8.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 47,622 shares of company stock valued at $3,640,273 in the last three months. 2.20% of the stock is currently owned by company insiders.

Meritage Homes Company 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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