Zacks Research Upgrades Meritage Homes (NYSE:MTH) to "Hold"

Key Points

• Zacks Research upgraded Meritage Homes from "strong sell" to "hold" and raised several near‑term and multi‑year EPS forecasts — including FY2026 to $6.10 and higher projections for FY2027/FY2028 — indicating an improved earnings outlook even as the firm kept a Hold rating.
• Analyst sentiment is mixed: Truist initiated coverage with a Buy and $90 price target, while MarketBeat's consensus is a "Moderate Buy" with an average target of $84.33 (2 Strong Buy, 4 Buy, 7 Hold).
• Key fundamentals and activity: shares traded near $66.61 with a PE of ~10.5, the latest quarter beat EPS but revenue fell 11.9% year‑over‑year, and insiders recently sold about 47,622 shares (~$3.64M), leaving insiders with 2.20% ownership.

Meritage Homes (NYSE:MTH - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports. Zacks Research also issued estimates for Meritage Homes' Q1 2026 earnings at $1.11 EPS, 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, Q1 2028 earnings at $1.52 EPS, FY2028 earnings at $8.15 EPS and FY2028 earnings at $8.17 EPS.

Several other research analysts have also issued reports on MTH. Truist Financial assumed coverage on Meritage Homes in a research report on Wednesday, March 4th. They set a "buy" rating and a $90.00 target price for the company. Keefe, Bruyette & Woods dropped their target price 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. Wall Street Zen lowered Meritage Homes from a "hold" rating to a "sell" rating in a research report on Saturday. Citigroup initiated coverage on Meritage Homes in a report on Wednesday, January 7th. They issued an "outperform" rating for the company. Finally, Citizens Jmp initiated coverage on Meritage Homes in a report on Wednesday, January 7th. They issued a "market outperform" rating and a $90.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Meritage Homes has an average rating of "Moderate Buy" and a consensus target price of $84.33.

Meritage Homes Stock Up 0.3%

Shares of NYSE:MTH opened at $66.61 on Monday. Meritage Homes has a 1 year low of $58.03 and a 1 year high of $84.74. The business has a 50 day simple moving average of $68.92 and a two-hundred day simple moving average of $69.65. The firm 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. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.10 and a quick ratio of 2.10.

Meritage Homes (NYSE:MTH - Get Free Report) last announced its earnings results on Wednesday, January 28th. The construction company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.55 by $0.12. Meritage Homes had a return on equity of 9.28% and a net margin of 7.73%.The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the previous year, the business earned $4.72 earnings per share. The company's revenue for the quarter was down 11.9% compared to the same quarter last year. On average, equities analysts predict that Meritage Homes will post 9.44 EPS for the current year.

Insider Buying and Selling

In related news, CEO Phillippe Lord sold 32,820 shares of the business's stock in a transaction that occurred 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 transaction, the chief executive officer owned 260,389 shares of the company's stock, valued at $19,917,154.61. The trade was a 11.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Hilla Sferruzza sold 10,928 shares of the business'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 transaction of $834,352.80. Following the completion of the transaction, the chief financial officer directly owned 124,961 shares of the company's stock, valued at $9,540,772.35. This trade represents a 8.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 47,622 shares of company stock valued at $3,640,273 over the last 90 days. Corporate insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Meritage Homes

A number of large investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP raised its stake in Meritage Homes by 0.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,901,851 shares of the construction company's stock worth $190,943,000 after buying an additional 16,338 shares in the last quarter. Capital World Investors increased its position in shares of Meritage Homes by 44.3% during the third quarter. Capital World Investors now owns 1,987,850 shares of the construction company's stock worth $143,980,000 after purchasing an additional 609,866 shares in the last quarter. Greenhaven Associates Inc. increased its position in shares of Meritage Homes by 0.9% during the fourth quarter. Greenhaven Associates Inc. now owns 1,465,340 shares of the construction company's stock worth $96,419,000 after purchasing an additional 12,386 shares in the last quarter. Balyasny Asset Management L.P. increased its position in shares of Meritage Homes by 58.9% during the second quarter. Balyasny Asset Management L.P. now owns 1,423,013 shares of the construction company's stock worth $95,299,000 after purchasing an additional 527,265 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its position in shares of Meritage Homes by 58.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,058,850 shares of the construction company's stock worth $75,051,000 after purchasing an additional 391,297 shares in the last quarter. Institutional investors own 98.44% of the company's stock.

Key Meritage Homes News

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

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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