Meritage Homes (NYSE:MTH) Announces Earnings Results, Beats Expectations By $0.12 EPS

Meritage Homes (NYSE:MTH) posted its earnings results on Wednesday. The construction company reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.30 by $0.12, FiscalAI reports. Meritage Homes had a net margin of 6.11% and a return on equity of 7.08%. The firm had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the prior year, the company earned $2.04 EPS. The company’s revenue was down 14.1% on a year-over-year basis.

Meritage Homes Stock Up 0.3%

Shares of NYSE:MTH opened at $71.01 on Friday. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.36. Meritage Homes has a 52-week low of $58.03 and a 52-week high of $85.38. The company has a 50 day moving average of $73.64 and a two-hundred day moving average of $70.52. The company has a market capitalization of $4.74 billion, a price-to-earnings ratio of 14.85, a price-to-earnings-growth ratio of 3.17 and a beta of 1.35.

Meritage Homes Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Tuesday, June 16th. Meritage Homes’s dividend payout ratio is currently 40.17%.

Analyst Ratings Changes

MTH has been the subject of several research reports. Weiss Ratings upgraded shares of Meritage Homes from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, June 24th. Truist Financial set a $80.00 target price on shares of Meritage Homes and gave the company a “buy” rating in a report on Thursday, April 16th. Zacks Research upgraded shares of Meritage Homes from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. Bank of America decreased their price target 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. Finally, Citigroup reiterated a “market outperform” rating on shares of Meritage Homes in a report on Monday, July 6th. Five investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Meritage Homes presently has a consensus rating of “Hold” and an average price target of $79.00.

Insider Activity at Meritage Homes

In other news, CAO Alison Sasser sold 1,273 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $62.11, for a total transaction of $79,066.03. Following the transaction, the chief accounting officer directly owned 7,634 shares of the company’s stock, valued at approximately $474,147.74. The trade was a 14.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On Meritage Homes

A number of large investors have recently added to or reduced their stakes in the company. Larson Financial Group LLC lifted 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 worth $29,000 after buying an additional 292 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of Meritage Homes by 194.9% during the second 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 last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Meritage Homes during the fourth quarter worth about $49,000. CIBC Private Wealth Group LLC lifted its stake in shares of Meritage Homes by 23.1% in the third quarter. CIBC Private Wealth Group LLC now owns 1,429 shares of the construction company’s stock worth $104,000 after acquiring an additional 268 shares in the last quarter. Finally, Smartleaf Asset Management LLC lifted its stake in shares of Meritage Homes by 22.8% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,592 shares of the construction company’s stock worth $106,000 after acquiring an additional 296 shares in the last quarter. 98.44% of the stock is owned by institutional investors and hedge funds.

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.