FY2026 EPS Estimate for Meritage Homes Lowered by Analyst

Key Points

• FY2026 EPS estimate cut: Keefe, Bruyette & Woods lowered its FY2026 EPS forecast for Meritage Homes to $5.18 from $5.73, maintaining a "Market Perform" rating and $76 price target (consensus EPS is $5.10).
• Quarterly results missed: Meritage reported Q earnings of $0.86 per share versus a $0.98 consensus and revenue of $1.12 billion (vs. $1.55 billion expected), with revenue down 17.5% year‑over‑year.
• Dividend increase and insider selling: The company raised its quarterly dividend to $0.48 ($1.92 annualized, 2.9% yield) while insiders sold about 47,622 shares (~$3.64 million) over the last quarter, leaving insiders owning 2.5% of the stock.

Meritage Homes Corporation (NYSE:MTH - Free Report) - Research analysts at Keefe, Bruyette & Woods decreased their FY2026 earnings estimates for Meritage Homes in a note issued to investors on Monday, April 27th. Keefe, Bruyette & Woods analyst J. Rahmani now forecasts that the construction company will post earnings of $5.18 per share for the year, down from their prior estimate of $5.73. Keefe, Bruyette & Woods has a "Market Perform" rating and a $76.00 price objective on the stock. The consensus estimate for Meritage Homes' current full-year earnings is $5.10 per share.

Meritage Homes (NYSE:MTH - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The construction company reported $0.86 earnings per share (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 company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.55 billion. During the same quarter last year, the company earned $1.69 EPS. The business's revenue was down 17.5% compared to the same quarter last year.

Several other equities analysts also recently issued reports on the stock. Weiss Ratings upgraded shares of Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, April 27th. JPMorgan Chase & Co. cut their price objective on shares of Meritage Homes from $62.00 to $58.00 and set a "neutral" rating on the stock in a report on Tuesday, April 28th. Wall Street Zen downgraded shares of Meritage Homes from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Zacks Research upgraded shares of Meritage Homes from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $90.00 price objective on shares of Meritage Homes in a report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $79.89.

Meritage Homes Stock Performance

MTH opened at $66.35 on Monday. Meritage Homes has a 52-week low of $58.03 and a 52-week high of $84.74. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.36. The company has a market cap of $4.43 billion, a P/E ratio of 12.17, a price-to-earnings-growth ratio of 2.88 and a beta of 1.43. The firm's 50-day moving average price is $66.59 and its 200-day moving average price is $69.43.

Meritage Homes Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th were given a $0.48 dividend. This is an increase from Meritage Homes's previous quarterly dividend of $0.43. This represents a $1.92 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Tuesday, March 17th. Meritage Homes's payout ratio is currently 35.23%.

Insider Activity at Meritage Homes

In related news, CEO Phillippe Lord sold 32,820 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.49, for a total value of $2,510,401.80. Following the sale, the chief executive officer owned 260,389 shares in the company, valued at $19,917,154.61. This represents a 11.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Javier Feliciano sold 3,580 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $76.24, for a total value of $272,939.20. Following the completion of the sale, the executive vice president owned 44,935 shares in the company, valued at approximately $3,425,844.40. This represents a 7.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 47,622 shares of company stock worth $3,640,273 over the last quarter. Insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On Meritage Homes

Large investors have recently bought and sold shares of the company. Salomon & Ludwin LLC boosted its position in Meritage Homes by 63.9% in the fourth quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company's stock valued at $25,000 after buying an additional 145 shares during the last quarter. Larson Financial Group LLC boosted its position in 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 purchasing an additional 292 shares in the last quarter. Brown Lisle Cummings Inc. purchased a new stake in Meritage Homes in the 4th quarter worth approximately $39,000. EverSource Wealth Advisors LLC boosted its position in 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 purchasing an additional 462 shares in the last quarter. Finally, Kestra Advisory Services LLC purchased a new stake in Meritage Homes in the 4th quarter worth approximately $49,000. Hedge funds and other institutional investors own 98.44% of the company's stock.

About Meritage Homes

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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