Meritage Homes (NYSE:MTH) Trading Down 3% - Here's Why

Meritage Homes Corporation (NYSE:MTH - Get Free Report) shares were down 3% during trading on Thursday . The company traded as low as $70.61 and last traded at $70.45. Approximately 182,795 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 877,639 shares. The stock had previously closed at $72.62.

Analyst Upgrades and Downgrades

MTH has been the subject of a number of recent research reports. Seaport Res Ptn upgraded Meritage Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 6th. Wall Street Zen downgraded shares of Meritage Homes from a "hold" rating to a "sell" rating in a report on Monday, March 24th. Bank of America initiated coverage on Meritage Homes in a report on Monday, May 5th. They set a "buy" rating and a $82.00 price target on the stock. UBS Group set a $107.00 price objective on Meritage Homes in a research note on Friday, April 25th. Finally, Keefe, Bruyette & Woods decreased their target price on Meritage Homes from $90.00 to $77.00 and set a "market perform" rating on the stock in a research note on Monday, April 28th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and five have given a buy rating to the company. According to data from MarketBeat, Meritage Homes has an average rating of "Hold" and an average target price of $97.72.

Meritage Homes Stock Up 1.8%

The business has a 50-day moving average price of $66.42 and a 200 day moving average price of $72.27. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 0.35. The stock has a market capitalization of $5.31 billion, a P/E ratio of 6.04 and a beta of 1.37.

Meritage Homes (NYSE:MTH - Get Free Report) last released its quarterly earnings results on Wednesday, April 23rd. The construction company reported $1.69 EPS for the quarter, missing the consensus estimate of $1.71 by ($0.02). The company had revenue of $1.36 billion during the quarter, compared to analysts' expectations of $1.34 billion. Meritage Homes had a return on equity of 14.28% and a net margin of 11.50%. The company's revenue was down 8.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $5.06 EPS. On average, equities analysts expect that Meritage Homes Corporation will post 9.44 EPS for the current fiscal year.

Meritage Homes Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Monday, June 16th were issued a $0.43 dividend. The ex-dividend date of this dividend was Monday, June 16th. This represents a $1.72 annualized dividend and a dividend yield of 2.33%. Meritage Homes's dividend payout ratio (DPR) is presently 14.06%.

Insider Buying and Selling

In other news, Director Joseph Keough acquired 4,000 shares of the firm's stock in a transaction on Thursday, June 12th. The stock was acquired at an average price of $66.16 per share, with a total value of $264,640.00. Following the completion of the purchase, the director directly owned 41,700 shares in the company, valued at approximately $2,758,872. This trade represents a 10.61% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Meritage Homes

Institutional investors and hedge funds have recently modified their holdings of the business. Swedbank AB increased its stake in Meritage Homes by 85.6% in the first quarter. Swedbank AB now owns 205,531 shares of the construction company's stock worth $14,568,000 after purchasing an additional 94,800 shares during the period. Voya Investment Management LLC lifted its holdings in Meritage Homes by 82.2% during the 1st quarter. Voya Investment Management LLC now owns 21,782 shares of the construction company's stock valued at $1,544,000 after buying an additional 9,829 shares in the last quarter. Inspire Investing LLC grew its stake in Meritage Homes by 86.7% in the 1st quarter. Inspire Investing LLC now owns 4,860 shares of the construction company's stock worth $344,000 after acquiring an additional 2,257 shares in the last quarter. Strs Ohio bought a new position in Meritage Homes in the 1st quarter worth about $482,000. Finally, BOS Asset Management LLC increased its position in shares of Meritage Homes by 129.9% during the first quarter. BOS Asset Management LLC now owns 10,994 shares of the construction company's stock worth $779,000 after acquiring an additional 6,211 shares during the period. 98.44% of the stock is owned by institutional investors.

About Meritage Homes

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.

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