Zacks Research Raises Earnings Estimates for Meritage Homes

Key Points

• Zacks Research raised Meritage's Q1 2026 EPS estimate to $1.11 (from $1.04) and lifted multiple 2026–2028 forecasts, but kept a Hold rating, indicating modest model upgrades without a recommendation change.
• Meritage recently beat quarterly EPS expectations ($1.67 vs. $1.55) while revenue fell 11.9% year‑over‑year, highlighting mixed results and potential near‑term volatility in closings and margins.
• The company increased its quarterly dividend to $0.48 (annualized $1.92, ~2.9% yield), even as insiders — including the CEO and CFO — sold shares (47,622 shares worth about $3.64M) in the latest quarter.

Meritage Homes Corporation (NYSE:MTH - Free Report) - Zacks Research lifted their Q1 2026 earnings per share (EPS) estimates for shares of Meritage Homes in a note issued to investors on Monday, April 13th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $1.11 per share for the quarter, up from their previous forecast of $1.04. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Meritage Homes' current full-year earnings is $9.44 per share. Zacks Research also issued estimates for Meritage Homes' Q2 2026 earnings at $1.75 EPS, Q3 2026 earnings at $1.58 EPS, Q4 2026 earnings at $1.65 EPS, FY2026 earnings at $6.10 EPS, Q1 2027 earnings at $1.32 EPS, Q2 2027 earnings at $1.97 EPS, Q3 2027 earnings at $1.81 EPS, Q4 2027 earnings at $1.95 EPS, FY2027 earnings at $7.04 EPS and FY2028 earnings at $8.17 EPS.

Meritage Homes (NYSE:MTH - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The construction company reported $1.67 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $1.51 billion. During the same quarter in the previous year, the company posted $4.72 EPS. Meritage Homes's revenue was down 11.9% on a year-over-year basis.

MTH has been the subject of several other research reports. The Goldman Sachs Group restated a "buy" rating and issued a $90.00 price objective on shares of Meritage Homes in a research report on Tuesday, January 13th. Wall Street Zen downgraded shares of Meritage Homes from a "hold" rating to a "sell" rating in a research report on Saturday. Citigroup started coverage on shares of Meritage Homes in a research report on Wednesday, January 7th. They set an "outperform" rating on the stock. Bank of America restated a "neutral" rating and set a $82.00 target price (up from $75.00) on shares of Meritage Homes in a research report on Friday, January 16th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Meritage Homes in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $84.33.

Meritage Homes Stock Performance

MTH stock opened at $66.61 on Wednesday. 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 company has a 50 day moving average price of $68.92 and a 200 day moving average price of $69.65. Meritage Homes has a fifty-two week low of $58.03 and a fifty-two week high of $84.74. The stock has a market capitalization of $4.44 billion, a PE ratio of 10.54, a price-to-earnings-growth ratio of 1.19 and a beta of 1.50.

Meritage Homes Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th were given a $0.48 dividend. The ex-dividend date was Tuesday, March 17th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.9%. This is an increase from Meritage Homes's previous quarterly dividend of $0.43. Meritage Homes's dividend payout ratio is currently 30.38%.

Insider Activity at Meritage Homes

In related news, CEO Phillippe Lord sold 32,820 shares of the company's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $76.49, for a total value of $2,510,401.80. Following the completion of the sale, the chief executive officer owned 260,389 shares in the company, valued at $19,917,154.61. This represents a 11.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Hilla Sferruzza sold 10,928 shares of the company's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $76.35, for a total transaction of $834,352.80. Following the completion of the sale, the chief financial officer owned 124,961 shares of the company's stock, valued at approximately $9,540,772.35. This represents a 8.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 47,622 shares of company stock worth $3,640,273 in the last quarter. Corporate insiders own 2.20% of the company's stock.

Institutional Trading of Meritage Homes

A number of large investors have recently made changes to their positions in MTH. Norges Bank bought a new stake in shares of Meritage Homes in the 4th quarter valued at $63,053,000. Capital World Investors increased its position in shares of Meritage Homes by 44.3% in the 3rd quarter. Capital World Investors now owns 1,987,850 shares of the construction company's stock valued at $143,980,000 after buying an additional 609,866 shares in the last quarter. Balyasny Asset Management L.P. increased its position in shares of Meritage Homes by 58.9% in the 2nd quarter. Balyasny Asset Management L.P. now owns 1,423,013 shares of the construction company's stock valued at $95,299,000 after buying an additional 527,265 shares in the last quarter. Vaughan Nelson Investment Management L.P. bought a new stake in shares of Meritage Homes in the 3rd quarter valued at $37,477,000. Finally, Goldman Sachs Group Inc. increased its position in shares of Meritage Homes by 58.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,058,850 shares of the construction company's stock valued at $75,051,000 after buying an additional 391,297 shares in the last quarter. Institutional investors own 98.44% of the company's stock.

Key Headlines Impacting Meritage Homes

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

• Positive Sentiment: Zacks Research raised several near‑term and multi‑year EPS forecasts for MTH — including Q1–Q4 2026 quarterlies, FY2026 (to $6.10), and lifts to FY2027/FY2028 — suggesting better-than-expected earnings trajectory over the next two years. Zacks still carries a "Hold" rating. MarketBeat: MTH coverage
• Positive Sentiment: Wolfe Research raised its Q3 2026 EPS estimate sharply to $2.03 (from $1.67), indicating at least one major shop sees a stronger mid‑year recovery in margins or closings. MarketBeat: MTH coverage
• Neutral Sentiment: Many of the Zacks increases are modest (e.g., +$0.01–$0.12 per quarter) and the firm retains a "Hold" rating — positive model tweaks but no upgrade in recommendation. This tempers the bullish signal. MarketBeat: MTH coverage
• Negative Sentiment: Wolfe Research cut Q2 2026 (to $1.50 from $1.96) and Q4 2026 (to $0.97 from $1.32) estimates — a notable intra‑firm deterioration that highlights potential near‑term volatility in closings/timing or margin pressure. MarketBeat: MTH coverage
• Negative Sentiment: An external article flags an earnings downgrade and market challenges for Meritage, reinforcing risk that macro or demand pressures could hurt short‑term results and sentiment. Meritage Homes Faces Earnings Downgrade Amid Market Challenges

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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