Meritage Homes Q2 EPS Forecast Lowered by Wolfe Research

Key Points

• Wolfe Research cut its Q2 2026 EPS estimate for Meritage Homes to $1.50 (from $1.96) and issued Q3 and Q4 EPS forecasts of $2.03 and $0.97 respectively, while the consensus full‑year estimate is $9.44.
• Analysts are mixed but generally positive, with an average rating of "Moderate Buy" and an average price target of $84.33, while the stock trades around the mid‑$60s with a P/E near 10.5 and a market cap of about $4.4 billion.
• Insiders have been selling recently (CEO sold 32,820 shares) even as Meritage raised its quarterly dividend to $0.48 (annualized $1.92, ~2.9% yield).

Meritage Homes Corporation (NYSE:MTH - Free Report) - Equities researchers at Wolfe Research cut their Q2 2026 EPS estimates for Meritage Homes in a research note issued to investors on Thursday, April 9th. Wolfe Research analyst T. Allinson now anticipates that the construction company will post earnings of $1.50 per share for the quarter, down from their prior forecast of $1.96. The consensus estimate for Meritage Homes' current full-year earnings is $9.44 per share. Wolfe Research also issued estimates for Meritage Homes' Q3 2026 earnings at $2.03 EPS and Q4 2026 earnings at $0.97 EPS.

Other equities research analysts also recently issued research reports about the stock. The Goldman Sachs Group reiterated a "buy" rating and set a $90.00 price target on shares of Meritage Homes in a research note on Tuesday, January 13th. Wall Street Zen downgraded shares of Meritage Homes from a "hold" rating to a "sell" rating in a research note on Saturday. Citizens Jmp began coverage on shares of Meritage Homes in a research note on Wednesday, January 7th. They set a "market outperform" rating and a $90.00 price target on the stock. UBS Group set a $95.00 price objective on Meritage Homes in a report on Friday, January 30th. Finally, Bank of America reissued a "neutral" rating and set a $82.00 price objective (up from $75.00) on shares of Meritage Homes in a report on Friday, January 16th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $84.33.

Meritage Homes Stock Down 0.3%

MTH opened at $66.33 on Tuesday. Meritage Homes has a fifty-two week low of $58.03 and a fifty-two week high of $84.74. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.10 and a quick ratio of 2.10. The firm's fifty day moving average price is $69.04 and its two-hundred day moving average price is $69.69. The company has a market capitalization of $4.42 billion, a P/E ratio of 10.50, a P/E/G ratio of 1.19 and a beta of 1.50.

Meritage Homes (NYSE:MTH - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The construction company reported $1.67 earnings per share for the quarter, topping analysts' consensus estimates of $1.55 by $0.12. Meritage Homes had a net margin of 7.73% and a return on equity of 9.28%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same quarter in the previous year, the company earned $4.72 earnings per share. The business's revenue was down 11.9% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Salomon & Ludwin LLC raised its holdings in shares of Meritage Homes by 63.9% in the fourth quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company's stock valued at $25,000 after buying an additional 145 shares during the last quarter. New Age Alpha Advisors LLC raised its holdings in shares of Meritage Homes by 1.5% in the fourth quarter. New Age Alpha Advisors LLC now owns 10,627 shares of the construction company's stock valued at $699,000 after buying an additional 158 shares during the last quarter. Archer Investment Corp raised its holdings in shares of Meritage Homes by 11.4% in the third quarter. Archer Investment Corp now owns 1,559 shares of the construction company's stock valued at $113,000 after buying an additional 159 shares during the last quarter. ProShare Advisors LLC raised its holdings in shares of Meritage Homes by 1.2% in the fourth quarter. ProShare Advisors LLC now owns 13,559 shares of the construction company's stock valued at $892,000 after buying an additional 164 shares during the last quarter. Finally, Signaturefd LLC raised its holdings in shares of Meritage Homes by 25.7% in the fourth quarter. Signaturefd LLC now owns 808 shares of the construction company's stock valued at $53,000 after buying an additional 165 shares during the last quarter. 98.44% of the stock is owned by institutional investors.

Insider Buying and Selling at Meritage Homes

In other Meritage Homes news, CEO Phillippe Lord sold 32,820 shares of Meritage Homes stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $76.49, for a total transaction of $2,510,401.80. Following the completion of the transaction, the chief executive officer directly owned 260,389 shares of the company's stock, valued at approximately $19,917,154.61. This trade represents a 11.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Javier Feliciano sold 3,580 shares of Meritage Homes stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $76.24, for a total value of $272,939.20. Following the transaction, the executive vice president directly owned 44,935 shares of the company's stock, valued at approximately $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. Over the last three months, insiders sold 47,622 shares of company stock valued at $3,640,273. 2.20% of the stock is currently owned by company insiders.

Meritage Homes Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were issued a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, March 17th. 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 2.9%. Meritage Homes's dividend payout ratio (DPR) is 30.38%.

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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