Meritage Homes (NYSE:MTH) Upgraded by Zacks Research to Hold Rating

Key Points

• Zacks Research upgraded Meritage Homes from “strong sell” to “hold”, adding to a mixed but mostly cautious analyst backdrop. The stock now carries an average Hold rating with a consensus target price of $80.22.
• Shares were trading around $73.48, near the stock’s 50-day and 200-day moving averages, with a market cap of about $4.9 billion. Meritage Homes also has relatively solid liquidity and moderate leverage, with a debt-to-equity ratio of 0.36.
• The company’s latest quarterly results missed expectations, with $0.86 EPS and $1.12 billion in revenue versus higher estimates. Revenue fell 17.5% year over year, though analysts still expect $4.97 EPS for the full year.

Meritage Homes (NYSE:MTH - Get Free Report) was upgraded by stock analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities analysts have also recently commented on MTH. The Goldman Sachs Group reiterated a "buy" rating and set a $93.00 target price (up from $82.00) on shares of Meritage Homes in a research note on Friday. Weiss Ratings upgraded shares of Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, June 24th. Bank of America dropped their price objective on shares of Meritage Homes from $74.00 to $72.00 and set a "neutral" rating on the stock in a report on Monday, April 20th. Citigroup reaffirmed a "market outperform" rating on shares of Meritage Homes in a research report on Monday, July 6th. Finally, Zelman & Associates cut shares of Meritage Homes from an "outperform" rating to a "neutral" rating in a research note on Tuesday, July 7th. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $80.22.

Meritage Homes Trading Down 0.5%

Meritage Homes stock opened at $73.48 on Monday. Meritage Homes has a 52 week low of $58.03 and a 52 week high of $85.38. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.96 and a current ratio of 1.96. The firm has a market capitalization of $4.90 billion, a PE ratio of 13.48, a PEG ratio of 3.29 and a beta of 1.35. The business's 50-day simple moving average is $71.19 and its 200-day simple moving average is $70.05.

Meritage Homes (NYSE:MTH - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The construction company reported $0.86 EPS for the quarter, missing the consensus estimate of $0.98 by ($0.12). Meritage Homes had a return on equity of 8.08% and a net margin of 6.86%.The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.55 billion. During the same period in the prior year, the firm earned $1.69 earnings per share. The business's quarterly revenue was down 17.5% on a year-over-year basis. Equities research analysts forecast that Meritage Homes will post 4.97 earnings per share for the current year.

Insider Transactions at Meritage Homes

In other Meritage Homes 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 transaction of $79,066.03. Following the completion of the transaction, the chief accounting officer owned 7,634 shares in the company, valued at $474,147.74. This trade represents a 14.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Meritage Homes

A number of hedge funds have recently modified their holdings of MTH. Salomon & Ludwin LLC boosted its stake in Meritage Homes by 63.9% in the 4th quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company's stock valued at $25,000 after buying an additional 145 shares in the last quarter. Essential Partners LLC raised its stake in Meritage Homes by 163.8% during the first quarter. Essential Partners LLC now owns 401 shares of the construction company's stock worth $25,000 after acquiring an additional 249 shares in the last quarter. Larson Financial Group LLC raised its stake in Meritage Homes by 265.5% during the third quarter. Larson Financial Group LLC now owns 402 shares of the construction company's stock worth $29,000 after acquiring an additional 292 shares in the last quarter. Brown Lisle Cummings Inc. bought a new position in shares of Meritage Homes during the fourth quarter valued at $39,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Meritage Homes by 194.9% during the second quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company's stock valued at $47,000 after acquiring an additional 462 shares during the period. 98.44% of the stock is owned by institutional investors and hedge funds.

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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