Meritage Homes Q2 EPS Estimate Reduced by Wolfe Research

Key Points

• Wolfe Research cut its Q2 2026 EPS estimate for Meritage to $1.34 from $1.50 and models FY2026 EPS of $5.03 and FY2027 EPS of $6.82, versus a consensus full-year estimate of $5.64.
• Meritage missed its most recent quarter, reporting $0.86 EPS versus $0.98 expected and revenue of $1.12 billion (consensus $1.55 billion), with revenue down 17.5% year‑over‑year.
• The company raised its quarterly dividend to $0.48 (annualized $1.92, ~2.8% yield) while insiders trimmed positions, with executives selling roughly 47,622 shares (~$3.64 million) in the last quarter.

Meritage Homes Corporation (NYSE:MTH - Free Report) - Research analysts at Wolfe Research lowered their Q2 2026 EPS estimates for shares of Meritage Homes in a report released on Thursday, April 23rd. Wolfe Research analyst T. Allinson now anticipates that the construction company will post earnings of $1.34 per share for the quarter, down from their previous forecast of $1.50. The consensus estimate for Meritage Homes' current full-year earnings is $5.64 per share. Wolfe Research also issued estimates for Meritage Homes' FY2026 earnings at $5.03 EPS and FY2027 earnings at $6.82 EPS.

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

Several other equities research analysts also recently commented on MTH. Citigroup began coverage on Meritage Homes in a report on Wednesday, January 7th. They set an "outperform" rating for the company. Citizens Jmp assumed coverage on Meritage Homes in a report on Wednesday, January 7th. They issued a "market outperform" rating and a $90.00 target price for the company. Bank of America dropped their price target on Meritage Homes from $74.00 to $72.00 and set a "neutral" rating on the stock in a research report on Monday, April 20th. Keefe, Bruyette & Woods reduced their price target on shares of Meritage Homes from $78.00 to $76.00 and set a "market perform" rating for the company in a research report on Tuesday, February 3rd. Finally, Truist Financial set a $80.00 price objective on shares of Meritage Homes and gave the company a "buy" rating in a research note on Thursday, April 16th. One 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 company. According to data from MarketBeat, Meritage Homes has a consensus rating of "Moderate Buy" and a consensus target price of $81.11.

Meritage Homes Price Performance

Shares of NYSE:MTH opened at $69.79 on Tuesday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.10 and a current ratio of 1.96. The company has a market capitalization of $4.66 billion, a PE ratio of 12.81, a price-to-earnings-growth ratio of 1.60 and a beta of 1.50. The stock has a fifty day moving average of $67.25 and a 200-day moving average of $69.43. Meritage Homes has a one year low of $58.03 and a one year high of $84.74.

Institutional Investors Weigh In On Meritage Homes

A number of hedge funds have recently bought and sold shares of the company. QRG Capital Management Inc. grew its position in shares of Meritage Homes by 9.8% in the first quarter. QRG Capital Management Inc. now owns 8,818 shares of the construction company's stock valued at $545,000 after purchasing an additional 789 shares during the last quarter. Private Advisor Group LLC acquired a new position in shares of Meritage Homes during the 1st quarter worth about $203,000. Y Intercept Hong Kong Ltd bought a new stake in Meritage Homes during the 1st quarter valued at approximately $313,000. Elevation Point Wealth Partners LLC grew its holdings in Meritage Homes by 29.2% in the 1st quarter. Elevation Point Wealth Partners LLC now owns 6,032 shares of the construction company's stock valued at $373,000 after buying an additional 1,364 shares during the last quarter. Finally, iA Global Asset Management Inc. acquired a new stake in Meritage Homes in the 1st quarter valued at approximately $6,650,000. 98.44% of the stock is currently owned by institutional investors.

Insider Activity

In related news, CFO Hilla Sferruzza sold 10,928 shares of the firm's 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 transaction, the chief financial officer directly owned 124,961 shares of the company's stock, valued at approximately $9,540,772.35. This trade represents a 8.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Javier Feliciano sold 3,580 shares of the business's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $76.24, for a total transaction of $272,939.20. Following the completion of the sale, the executive vice president 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 SEC filing for this sale provides additional information. In the last quarter, insiders have sold 47,622 shares of company stock valued at $3,640,273. Insiders own 2.50% of the company's stock.

Meritage Homes Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were given a $0.48 dividend. This is an increase 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 payout ratio is presently 35.23%.

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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