Zacks Research Forecasts Lower Earnings for Meritage Homes

Key Points

• Zacks Research lowered Meritage Homes’ Q1 2027 EPS estimate to $0.96 from $0.99 and kept a Strong Sell rating, reinforcing a bearish near-term outlook.
• The firm also trimmed forecasts for later quarters and full-year periods, including FY2027 and FY2028, suggesting slower earnings momentum ahead for the homebuilder.
• Meritage Homes recently missed Q1 earnings expectations, reporting $0.86 EPS versus $0.98 expected, while revenue came in well below estimates at $1.12 billion.

Meritage Homes Corporation (NYSE:MTH - Free Report) - Research analysts at Zacks Research cut their Q1 2027 earnings per share estimates for shares of Meritage Homes in a research note issued on Wednesday, May 13th. Zacks Research analyst Team now expects that the construction company will post earnings per share of $0.96 for the quarter, down from their prior estimate of $0.99. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Meritage Homes' current full-year earnings is $5.01 per share. Zacks Research also issued estimates for Meritage Homes' Q2 2027 earnings at $1.60 EPS, Q3 2027 earnings at $1.72 EPS, Q4 2027 earnings at $1.81 EPS, FY2027 earnings at $6.10 EPS, Q1 2028 earnings at $1.18 EPS and FY2028 earnings at $7.33 EPS.

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

A number of other research analysts have also weighed in on the stock. Bank of America cut their target price on shares of Meritage Homes from $74.00 to $72.00 and set a "neutral" rating for the company in a research report on Monday, April 20th. JPMorgan Chase & Co. lowered their price target on Meritage Homes from $62.00 to $58.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 28th. Keefe, Bruyette & Woods dropped their price objective on Meritage Homes from $78.00 to $76.00 and set a "market perform" rating on the stock in a research note on Tuesday, February 3rd. UBS Group set a $86.00 target price on Meritage Homes and gave the company a "buy" rating in a research note on Friday, April 24th. Finally, Wall Street Zen lowered Meritage Homes from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Meritage Homes currently has an average rating of "Hold" and a consensus price target of $79.89.

Meritage Homes Price Performance

Shares of Meritage Homes stock opened at $61.51 on Thursday. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.36. The firm has a fifty day simple moving average of $64.91 and a 200-day simple moving average of $69.10. The stock has a market capitalization of $4.10 billion, a price-to-earnings ratio of 11.29, a PEG ratio of 2.76 and a beta of 1.43. Meritage Homes has a 1-year low of $58.03 and a 1-year high of $84.74.

Meritage Homes Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 3.1%. The ex-dividend date was Tuesday, March 17th. This is a positive change from Meritage Homes's previous quarterly dividend of $0.43. Meritage Homes's payout ratio is presently 35.23%.

Insider Activity at Meritage Homes

In related news, EVP Javier Feliciano sold 3,580 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $76.24, for a total value of $272,939.20. Following the completion of the sale, the executive vice president owned 44,935 shares in the company, valued at approximately $3,425,844.40. This trade represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Hilla Sferruzza sold 10,928 shares of Meritage Homes stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $76.35, for a total value of $834,352.80. Following the sale, the chief financial officer directly owned 124,961 shares in the company, valued at approximately $9,540,772.35. This trade represents a 8.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 48,895 shares of company stock worth $3,719,339 over the last ninety days. Corporate insiders own 2.50% of the company's stock.

Institutional Trading of Meritage Homes

A number of institutional investors and hedge funds have recently modified their holdings of the company. Salomon & Ludwin LLC lifted its position in Meritage Homes by 63.9% in the fourth quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company's stock worth $25,000 after purchasing an additional 145 shares during the period. Larson Financial Group LLC increased its holdings in Meritage Homes by 265.5% in the 3rd quarter. Larson Financial Group LLC now owns 402 shares of the construction company's stock valued at $29,000 after buying an additional 292 shares during the period. Brown Lisle Cummings Inc. acquired a new position in shares of Meritage Homes in the 4th quarter valued at $39,000. EverSource Wealth Advisors LLC lifted its holdings in shares of Meritage Homes by 194.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company's stock worth $47,000 after acquiring an additional 462 shares during the period. Finally, Assetmark Inc. lifted its holdings in shares of Meritage Homes by 43.9% during the 1st quarter. Assetmark Inc. now owns 774 shares of the construction company's stock worth $48,000 after acquiring an additional 236 shares during the period. 98.44% of the stock is currently owned by institutional investors.

Trending Headlines about Meritage Homes

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

• Negative Sentiment: Zacks Research cut Meritage Homes’ Q1 2027 EPS estimate to $0.96 from $0.99 and kept a Strong Sell rating, signaling weaker near-term sentiment for the homebuilder.
• Negative Sentiment: The firm also lowered estimates for Q2 2027, Q3 2027, Q4 2027, FY2027, and FY2028, suggesting analysts see softer earnings momentum ahead for MTH.
• Negative Sentiment: Zacks published a bearish “Bear of the Day” note, saying Meritage’s downward EPS revisions since its April 22 earnings report were enough to earn a Zacks Rank #5 (Strong Sell). Article Title
• Negative Sentiment: Insider selling added to the cautious tone, with CAO Alison Sasser selling 1,273 shares in a transaction disclosed Tuesday, May 12.

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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