Meritage Homes (NYSE:MTH) Releases Quarterly Earnings Results, Misses Expectations By $0.73 EPS
by Kim Johansen · The Markets DailyMeritage Homes (NYSE:MTH – Get Free Report) released its earnings results on Wednesday. The construction company reported $0.86 earnings per share for the quarter, missing the consensus estimate of $1.59 by ($0.73), Zacks reports. The company had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.55 billion. Meritage Homes had a return on equity of 9.28% and a net margin of 7.73%.Meritage Homes’s revenue for the quarter was down 17.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.69 EPS.
Meritage Homes Price Performance
Shares of NYSE MTH traded down $1.08 during midday trading on Wednesday, reaching $68.41. The company’s stock had a trading volume of 1,303,996 shares, compared to its average volume of 778,582. The company has a current ratio of 2.10, a quick ratio of 2.10 and a debt-to-equity ratio of 0.35. The company has a 50 day moving average price of $67.84 and a 200 day moving average price of $69.43. Meritage Homes has a one year low of $58.03 and a one year high of $84.74. The company has a market cap of $4.56 billion, a price-to-earnings ratio of 10.83, a price-to-earnings-growth ratio of 1.60 and a beta of 1.50.
Meritage Homes Increases Dividend
The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Tuesday, March 17th. This is an increase from Meritage Homes’s previous quarterly dividend of $0.43. Meritage Homes’s payout ratio is presently 30.38%.
Analyst Ratings Changes
MTH has been the subject of several research reports. UBS Group set a $95.00 price target on shares of Meritage Homes in a report on Friday, January 30th. The Goldman Sachs Group reissued a “buy” rating and set a $90.00 target price on shares of Meritage Homes in a research note on Tuesday, January 13th. Bank of America reduced their target price on shares of Meritage Homes from $74.00 to $72.00 and set a “neutral” rating for the company in a research note on Monday. Zacks Research raised shares of Meritage Homes from a “strong sell” rating to a “hold” rating in a research note on Monday, April 13th. Finally, Citizens Jmp began coverage on shares of Meritage Homes in a research note on Wednesday, January 7th. They set a “market outperform” rating and a $90.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $82.11.
Read Our Latest Stock Report on MTH
Insider Buying and Selling
In related news, CFO Hilla Sferruzza sold 10,928 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $76.35, for a total value of $834,352.80. Following the sale, the chief financial officer directly owned 124,961 shares in the company, valued at $9,540,772.35. The trade was a 8.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Javier Feliciano sold 3,580 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.24, for a total transaction of $272,939.20. Following the completion of the sale, the executive vice president owned 44,935 shares in the company, valued at $3,425,844.40. The trade was a 7.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 47,622 shares of company stock worth $3,640,273 in the last ninety days. 2.50% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Meritage Homes
Large investors have recently made changes to their positions in the company. Meeder Advisory Services Inc. raised its holdings in shares of Meritage Homes by 51.7% during the fourth quarter. Meeder Advisory Services Inc. now owns 5,555 shares of the construction company’s stock valued at $366,000 after acquiring an additional 1,894 shares during the period. Oxford Asset Management LLP acquired a new stake in shares of Meritage Homes during the fourth quarter valued at approximately $365,000. Virtu Financial LLC raised its holdings in shares of Meritage Homes by 81.5% during the fourth quarter. Virtu Financial LLC now owns 5,537 shares of the construction company’s stock valued at $364,000 after acquiring an additional 2,487 shares during the period. Elevation Point Wealth Partners LLC acquired a new stake in shares of Meritage Homes during the third quarter valued at approximately $331,000. Finally, Cibc World Markets Corp acquired a new stake in shares of Meritage Homes during the fourth quarter valued at approximately $303,000. Institutional investors and hedge funds own 98.44% of the company’s stock.
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.