Wedbush downgraded shares of Meritage Homes (NYSE:MTH) from an outperform rating to a neutral rating in a research note issued to investors on Thursday morning, Marketbeat reports. Wedbush currently has $41.00 target price on the construction company’s stock. Wedbush also issued estimates for Meritage Homes’ Q1 2020 earnings at $0.93 EPS, Q2 2020 earnings at $1.44 EPS, Q3 2020 earnings at $1.60 EPS and Q4 2020 earnings at $1.84 EPS. The analysts noted that the move was a valuation call.

A number of other research firms also recently issued reports on MTH. JMP Securities restated a buy rating and issued a $48.00 target price (down from $58.00) on shares of Meritage Homes in a report on Thursday, October 11th. ValuEngine raised shares of Meritage Homes from a sell rating to a hold rating in a research report on Wednesday, September 12th. Credit Suisse Group reaffirmed a neutral rating and issued a $36.00 price target (down from $50.00) on shares of Meritage Homes in a report on Wednesday, October 17th. Deutsche Bank upgraded shares of Meritage Homes from a hold rating to a buy rating in a research note on Monday, October 22nd. Finally, Zacks Investment Research lowered shares of Meritage Homes from a hold rating to a sell rating in a research note on Wednesday. One analyst has rated the stock with a sell rating, nine have issued a hold rating and five have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $46.55.

Meritage Homes stock traded down $0.41 during midday trading on Thursday, hitting $41.35. 483,400 shares of the company’s stock were exchanged, compared to its average volume of 480,438. Meritage Homes has a 12-month low of $32.02 and a 12-month high of $53.55. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.86 and a current ratio of 0.86. The company has a market capitalization of $1.68 billion, a P/E ratio of 10.66, a PEG ratio of 0.66 and a beta of 0.91.

Meritage Homes (NYSE:MTH) last announced its quarterly earnings data on Wednesday, October 24th. The construction company reported $1.33 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.36 by ($0.03). Meritage Homes had a net margin of 5.43% and a return on equity of 12.56%. The company had revenue of $884.58 million during the quarter, compared to analyst estimates of $899.55 million. As a group, equities analysts expect that Meritage Homes will post 5.17 earnings per share for the current year.

In other news, Director Dana Bradford acquired 1,500 shares of the firm’s stock in a transaction on Tuesday, November 6th. The stock was acquired at an average price of $37.70 per share, for a total transaction of $56,550.00. Following the completion of the transaction, the director now owns 54,500 shares in the company, valued at approximately $2,054,650. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Javier Feliciano sold 946 shares of the company’s stock in a transaction dated Tuesday, November 20th. The shares were sold at an average price of $36.66, for a total transaction of $34,680.36. The disclosure for this sale can be found here. 5.50% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. lifted its position in Meritage Homes by 46.0% during the second quarter. PNC Financial Services Group Inc. now owns 3,987 shares of the construction company’s stock valued at $175,000 after buying an additional 1,256 shares in the last quarter. Tower Research Capital LLC TRC acquired a new position in Meritage Homes during the third quarter valued at approximately $227,000. Paloma Partners Management Co bought a new position in Meritage Homes in the second quarter worth $232,000. Commonwealth Bank of Australia bought a new position in Meritage Homes during the third quarter worth about $243,000. Finally, Riverhead Capital Management LLC boosted its stake in Meritage Homes by 27.6% in the 3rd quarter. Riverhead Capital Management LLC now owns 6,469 shares of the construction company’s stock valued at $258,000 after purchasing an additional 1,400 shares during the period. Hedge funds and other institutional investors own 96.50% of the company’s stock.

About Meritage Homes

Meritage Homes Corporation designs and builds single-family homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for various homebuyers, including first-time, move-up, active-adult, and luxury homes under the Meritage Homes brand name.

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Analyst Recommendations for Meritage Homes (NYSE:MTH)

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