Meritage Homes Q2 EPS Cut by Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Meritage's Q2 2026 EPS estimate to $1.26 (from $1.49), kept a "Market Perform" rating and a $76 price target, and published higher‑year forecasts for FY2027 and FY2028.
• Meritage missed the most recent quarter, reporting $0.86 EPS vs. $0.98 expected and revenue of $1.12 billion (down 17.5% YoY vs. $1.55 billion expected), signaling near‑term demand weakness.
• Analyst sentiment is mixed—consensus is a Moderate Buy with a $79.89 target—while insiders have sold shares recently, institutions have increased positions, and the company raised its quarterly dividend to $0.48 (2.8% yield).

Meritage Homes Corporation (NYSE:MTH - Free Report) - Keefe, Bruyette & Woods dropped their Q2 2026 earnings per share (EPS) estimates for Meritage Homes in a research report issued to clients and investors on Monday, April 27th. Keefe, Bruyette & Woods analyst J. Rahmani now expects that the construction company will post earnings per share of $1.26 for the quarter, down from their previous forecast of $1.49. Keefe, Bruyette & Woods has a "Market Perform" rating and a $76.00 price target on the stock. The consensus estimate for Meritage Homes' current full-year earnings is $5.22 per share. Keefe, Bruyette & Woods also issued estimates for Meritage Homes' Q3 2026 earnings at $1.52 EPS, Q4 2026 earnings at $1.59 EPS, FY2027 earnings at $6.51 EPS and FY2028 earnings at $7.70 EPS.

Other analysts have also issued reports about the company. Weiss Ratings raised Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday. Citizens Jmp began coverage on Meritage Homes in a report on Wednesday, January 7th. They issued a "market outperform" rating and a $90.00 price objective on the stock. The Goldman Sachs Group reissued a "buy" rating and issued a $90.00 price objective on shares of Meritage Homes in a report on Tuesday, January 13th. Wall Street Zen lowered Meritage Homes from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Finally, UBS Group set a $86.00 price objective on Meritage Homes and gave the company a "buy" rating in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $79.89.

Meritage Homes Stock Up 0.6%

Shares of MTH opened at $67.44 on Friday. The company has a current ratio of 1.96, a quick ratio of 2.10 and a debt-to-equity ratio of 0.36. Meritage Homes has a 12 month low of $58.03 and a 12 month high of $84.74. The stock's 50 day moving average is $66.59 and its two-hundred day moving average is $69.42. The firm has a market cap of $4.50 billion, a P/E ratio of 12.37, a PEG ratio of 2.84 and a beta of 1.50.

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). Meritage Homes had a net margin of 6.86% and a return on equity of 8.08%. The business had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same period in the previous year, the business posted $1.69 earnings per share. The firm's revenue for the quarter was down 17.5% on a year-over-year basis.

Hedge Funds Weigh In On Meritage Homes

A number of institutional investors have recently added to or reduced their stakes in MTH. Royal Bank of Canada lifted its position in Meritage Homes by 134.3% during the first quarter. Royal Bank of Canada now owns 38,658 shares of the construction company's stock worth $2,740,000 after buying an additional 22,162 shares in the last quarter. AQR Capital Management LLC lifted its position in Meritage Homes by 51.7% during the first quarter. AQR Capital Management LLC now owns 12,937 shares of the construction company's stock worth $917,000 after buying an additional 4,407 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Meritage Homes by 58.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,058,850 shares of the construction company's stock worth $75,051,000 after buying an additional 391,297 shares in the last quarter. Empowered Funds LLC lifted its position in Meritage Homes by 111.0% during the first quarter. Empowered Funds LLC now owns 32,971 shares of the construction company's stock worth $2,337,000 after buying an additional 17,343 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Meritage Homes by 102.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 319,150 shares of the construction company's stock worth $22,621,000 after buying an additional 161,806 shares in the last quarter. Hedge funds and other institutional investors own 98.44% of the company's stock.

Insider Transactions at Meritage Homes

In other news, EVP Javier Feliciano sold 3,580 shares of Meritage Homes stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.24, for a total value of $272,939.20. Following the sale, the executive vice president directly owned 44,935 shares of the company's stock, valued at $3,425,844.40. The trade was a 7.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Hilla Sferruzza sold 10,928 shares of Meritage Homes stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.35, for a total value of $834,352.80. Following the completion of the sale, the chief financial officer directly owned 124,961 shares in the company, valued at $9,540,772.35. This represents a 8.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 47,622 shares of company stock valued at $3,640,273 over the last ninety days. Insiders own 2.50% of the company's stock.

Meritage Homes Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were paid a $0.48 dividend. This is a boost from Meritage Homes's previous quarterly dividend of $0.43. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, March 17th. Meritage Homes's dividend payout ratio is presently 35.23%.

Trending Headlines about Meritage Homes

Here are the key news stories impacting Meritage Homes this week:

• Positive Sentiment: Citizens JMP retained a "Market Outperform" rating and a $90 price target on MTH, signaling continued analyst confidence and potential upside vs. current levels. MarketBeat MTH
• Positive Sentiment: Wolfe Research raised its Q4 2026 EPS estimate sharply (to $1.49 from $0.97), which may have helped offset some negative revisions and supported today's uptick in the stock. MarketBeat MTH
• Neutral Sentiment: A press release in the feed about Mithril Silver & Gold (TSXV: MSG / ASX: MTH) is unrelated to Meritage Homes and should be ignored for MTH stock analysis.
• Negative Sentiment: Citizens JMP trimmed multiple near‑term quarter estimates (Q2–Q4 2026 and Q1 2027) and cut its FY2026 EPS forecast to $4.82 from $5.38 — a material downgrade to the firm’s near‑term earnings trajectory. MarketBeat MTH
• Negative Sentiment: Wolfe Research also lowered its Q3 2026 estimate sharply (to $1.40 from $2.03), adding to uncertainty about the company’s quarter‑to‑quarter recovery path. MarketBeat MTH

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.

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