Meritage Homes Corporation (NYSE:MTH) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Meritage Homes has a consensus analyst rating of “Hold” from 13 brokerages, with eight holds and five buys. The average 12-month price target is about $80.22.
• The company’s most recent quarter missed expectations, reporting $0.86 EPS versus $0.98 expected and revenue of $1.12 billion versus $1.55 billion expected. Revenue also fell 17.5% year over year.
• Meritage Homes recently paid a quarterly dividend of $0.48 per share, equal to a 2.6% annualized yield. The stock was also trading down 4.3% in the latest session, opening at $74.13.

Shares of Meritage Homes Corporation (NYSE:MTH - Get Free Report) have been given an average recommendation of "Hold" by the thirteen brokerages that are covering the firm, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $80.2222.

Several research analysts have commented on the stock. Zacks Research raised shares of Meritage Homes from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. JPMorgan Chase & Co. lowered their price objective on Meritage Homes from $62.00 to $58.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 28th. UBS Group set a $86.00 price objective on Meritage Homes and gave the company a "buy" rating in a research note on Friday, April 24th. Weiss Ratings upgraded Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, June 24th. Finally, Bank of America decreased their target price on Meritage Homes from $74.00 to $72.00 and set a "neutral" rating on the stock in a research note on Monday, April 20th.

Meritage Homes Trading Down 4.3%

Shares of Meritage Homes stock opened at $74.13 on Friday. Meritage Homes has a 12-month low of $58.03 and a 12-month high of $85.38. The company has a market cap of $4.94 billion, a price-to-earnings ratio of 13.60, a PEG ratio of 3.43 and a beta of 1.35. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.36. The company's 50-day moving average price is $71.83 and its 200-day moving average price is $70.21.

Meritage Homes (NYSE:MTH - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The construction company reported $0.86 EPS for the quarter, missing the consensus estimate of $0.98 by ($0.12). The firm had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $1.55 billion. Meritage Homes had a net margin of 6.86% and a return on equity of 8.08%. Meritage Homes's revenue was down 17.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.69 EPS. On average, equities analysts expect that Meritage Homes will post 5 earnings per share for the current fiscal year.

Meritage Homes Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were issued a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $1.92 annualized dividend and a dividend yield of 2.6%. Meritage Homes's payout ratio is presently 35.23%.

Insider Activity at Meritage Homes

In related news, CAO Alison Sasser sold 1,273 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $62.11, for a total value of $79,066.03. Following the transaction, the chief accounting officer directly owned 7,634 shares in the company, valued at approximately $474,147.74. This represents a 14.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 2.50% of the company's stock.

Hedge Funds Weigh In On Meritage Homes

Institutional investors have recently made changes to their positions in the stock. Salomon & Ludwin LLC lifted its holdings in shares of Meritage Homes by 63.9% during the 4th quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company's stock worth $25,000 after acquiring an additional 145 shares during the last quarter. Essential Partners LLC increased its stake in Meritage Homes by 163.8% in the first quarter. Essential Partners LLC now owns 401 shares of the construction company's stock valued at $25,000 after acquiring an additional 249 shares during the last quarter. Larson Financial Group LLC raised its position in Meritage Homes by 265.5% during the third quarter. Larson Financial Group LLC now owns 402 shares of the construction company's stock valued at $29,000 after purchasing an additional 292 shares in the last quarter. Brown Lisle Cummings Inc. bought a new stake in Meritage Homes during the fourth quarter worth about $39,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of 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. Institutional investors own 98.44% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.