Zacks Research Reduces Earnings Estimates for Meritage Homes

Meritage Homes Corporation (NYSE:MTH - Free Report) - Research analysts at Zacks Research decreased their Q2 2026 earnings per share (EPS) estimates for Meritage Homes in a report issued on Wednesday, May 6th. Zacks Research analyst Team now forecasts that the construction company will post earnings of $1.30 per share for the quarter, down from their prior estimate of $1.75. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Meritage Homes' current full-year earnings is $5.10 per share. Zacks Research also issued estimates for Meritage Homes' Q3 2026 earnings at $1.42 EPS, Q4 2026 earnings at $1.58 EPS, FY2026 earnings at $5.17 EPS, Q1 2027 earnings at $0.99 EPS, Q2 2027 earnings at $1.61 EPS, Q3 2027 earnings at $1.74 EPS, Q4 2027 earnings at $1.83 EPS, FY2027 earnings at $6.17 EPS, Q1 2028 earnings at $1.20 EPS and FY2028 earnings at $7.38 EPS.

Meritage Homes (NYSE:MTH - Get Free Report) last announced its quarterly 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 net margin of 6.86% and a return on equity of 8.08%. The company 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 firm posted $1.69 earnings per share. The company's revenue was down 17.5% compared to the same quarter last year.

A number of other research analysts also recently issued reports on the company. Bank of America decreased their price target on Meritage Homes from $74.00 to $72.00 and set a "neutral" rating for the company in a report on Monday, April 20th. Keefe, Bruyette & Woods cut their price objective on 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. Weiss Ratings upgraded Meritage Homes from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, April 27th. 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. Finally, Truist Financial set a $80.00 price objective on Meritage Homes and gave the company a "buy" rating in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Meritage Homes presently has a consensus rating of "Moderate Buy" and a consensus target price of $79.89.

Meritage Homes Trading Down 0.7%

Shares of NYSE:MTH opened at $64.42 on Friday. Meritage Homes has a 12-month low of $58.03 and a 12-month high of $84.74. The company has a market capitalization of $4.30 billion, a PE ratio of 11.82, a PEG ratio of 2.82 and a beta of 1.43. The business has a 50 day moving average of $65.81 and a two-hundred day moving average of $69.32. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.36.

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 3.0%. The ex-dividend date of this dividend was Tuesday, March 17th. Meritage Homes's dividend payout ratio is presently 35.23%.

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.

Hedge Funds Weigh In On Meritage Homes

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Alps Advisors Inc. purchased a new stake in Meritage Homes in the third quarter valued at $4,731,000. Lodge Hill Capital LLC purchased a new position in shares of Meritage Homes during the 3rd quarter worth approximately $21,729,000. Principal Financial Group Inc. boosted its position in shares of Meritage Homes by 13.1% during the 3rd quarter. Principal Financial Group Inc. now owns 402,664 shares of the construction company's stock worth $29,165,000 after purchasing an additional 46,554 shares during the period. Rafferty Asset Management LLC boosted its position in shares of Meritage Homes by 84.2% during the 3rd quarter. Rafferty Asset Management LLC now owns 107,394 shares of the construction company's stock worth $7,779,000 after purchasing an additional 49,101 shares during the period. Finally, Peak Financial Advisors LLC boosted its position in shares of Meritage Homes by 234.7% during the 4th quarter. Peak Financial Advisors LLC now owns 33,090 shares of the construction company's stock worth $2,177,000 after purchasing an additional 23,204 shares during the period. Institutional investors and hedge funds own 98.44% of the company's stock.

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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