Meritage Homes (NYSE:MTH) Issues Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Meritage Homes beat earnings expectations: Quarterly EPS was $1.42, exceeding the $1.29 consensus by $0.13, while revenue of $1.41 billion fell slightly short of the $1.43 billion estimate.
• Shares declined 2.4% to $71.47 following the results. Analysts maintain a consensus “Hold” rating with an average price target of $79.00.
• The company paid a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a 2.7% yield; institutional investors own 98.44% of outstanding shares.

Meritage Homes (NYSE:MTH - Get Free Report) announced its quarterly earnings data on Wednesday. The construction company reported $1.42 earnings per share for the quarter, beating analysts' consensus estimates of $1.29 by $0.13, FiscalAI reports. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.43 billion. Meritage Homes had a net margin of 6.86% and a return on equity of 8.08%.

Meritage Homes Stock Down 2.4%

Shares of NYSE MTH traded down $1.77 during mid-day trading on Wednesday, reaching $71.47. 1,070,371 shares of the company were exchanged, compared to its average volume of 973,458. The firm has a 50-day moving average of $73.34 and a 200 day moving average of $70.53. Meritage Homes has a 1 year low of $58.03 and a 1 year high of $85.38. 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 stock has a market cap of $4.77 billion, a price-to-earnings ratio of 13.11, a P/E/G ratio of 3.25 and a beta of 1.35.

Meritage Homes Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th were paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, June 16th. Meritage Homes's dividend payout ratio is 35.23%.

Insider Activity at Meritage Homes

In other news, CAO Alison Sasser sold 1,273 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $62.11, for a total value of $79,066.03. Following the sale, the chief accounting officer directly owned 7,634 shares in the company, valued at approximately $474,147.74. This trade represents a 14.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On Meritage Homes

Several institutional investors have recently bought and sold shares of MTH. M&T Bank Corp boosted its position in shares of Meritage Homes by 5.6% in the 2nd quarter. M&T Bank Corp now owns 4,806 shares of the construction company's stock worth $322,000 after purchasing an additional 256 shares in the last quarter. Cibc World Markets Corp purchased a new stake in Meritage Homes in the fourth quarter valued at about $303,000. Corient Private Wealth LLC boosted its holdings in Meritage Homes by 6.6% in the fourth quarter. Corient Private Wealth LLC now owns 3,903 shares of the construction company's stock worth $257,000 after acquiring an additional 240 shares in the last quarter. Quadrature Capital Ltd purchased a new stake in shares of Meritage Homes during the fourth quarter worth about $250,000. Finally, Coldstream Capital Management Inc. acquired a new position in shares of Meritage Homes during the third quarter valued at about $249,000. 98.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on MTH shares. Wall Street Zen upgraded shares of Meritage Homes from a "sell" rating to a "hold" rating in a research note on Saturday. Truist Financial set a $80.00 price target on Meritage Homes and gave the company a "buy" rating in a report on Thursday, April 16th. Weiss Ratings raised Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, June 24th. JPMorgan Chase & Co. reduced their price objective on Meritage Homes from $62.00 to $58.00 and set a "neutral" rating on the stock in a report on Tuesday, April 28th. Finally, UBS Group set a $86.00 price target on Meritage Homes and gave the stock a "buy" rating in a research report on Friday, April 24th. Five analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $79.00.

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.

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.