Meritage Homes (NYSE:MTH) Stock Rating Lowered by Zacks Research

Meritage Homes (NYSE:MTH) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday, Zacks reports.

MTH has been the subject of a number of other research reports. UBS Group reiterated a “buy” rating and issued a $88.00 price objective (up from $86.00) on shares of Meritage Homes in a report on Friday, July 31st. Zelman & Associates lowered Meritage Homes from an “outperform” rating to a “neutral” rating in a research note on Tuesday, July 7th. Wall Street Zen raised Meritage Homes from a “sell” rating to a “hold” rating in a research note on Saturday, July 25th. Melius Research started coverage on Meritage Homes in a report on Tuesday. They set a “sell” rating and a $59.00 price target on the stock. Finally, Truist Financial set a $72.00 price target on shares of Meritage Homes and gave the company a “hold” rating in a research report on Wednesday, September 16th. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $74.78.

Meritage Homes Stock Down 3.0%

Shares of MTH opened at $58.82 on Thursday. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.37. The firm has a market cap of $3.83 billion, a P/E ratio of 12.31, a PEG ratio of 4.50 and a beta of 1.33. The stock’s 50 day moving average is $67.73 and its two-hundred day moving average is $68.82. Meritage Homes has a 12 month low of $58.03 and a 12 month high of $85.38.

Meritage Homes (NYSE:MTH) last posted its quarterly earnings data on Wednesday, July 29th. The construction company reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.12. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. The business had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period last year, the firm posted $2.04 earnings per share. The company’s revenue was down 14.1% compared to the same quarter last year. Analysts predict that Meritage Homes will post 4.97 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Meritage Homes

Large investors have recently modified their holdings of the business. Bamco Inc. NY purchased a new position in shares of Meritage Homes during the 2nd quarter worth $112,498,000. Bank of New York Mellon Corp acquired a new position in Meritage Homes in the second quarter valued at about $68,873,000. Vaughan Nelson Investment Management L.P. lifted its position in Meritage Homes by 16.3% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 675,770 shares of the construction company’s stock valued at $41,790,000 after buying an additional 94,570 shares during the last quarter. Algert Global LLC boosted its stake in Meritage Homes by 267.8% during the second quarter. Algert Global LLC now owns 356,121 shares of the construction company’s stock worth $29,861,000 after buying an additional 259,291 shares during the period. Finally, SummitTX Capital L.P. increased its position in shares of Meritage Homes by 16.1% during the first quarter. SummitTX Capital L.P. now owns 471,614 shares of the construction company’s stock valued at $29,165,000 after acquiring an additional 65,540 shares during the last quarter. Institutional investors and hedge funds own 98.44% of the company’s stock.

Key Stories Impacting Meritage Homes

Here are the key news stories impacting Meritage Homes this week:

• Neutral Sentiment: Zacks Research maintained a “Hold” rating but made small downward revisions to its earnings forecasts. Estimates were reduced to $5.00 EPS for fiscal 2026, $5.86 for fiscal 2027, $1.78 for the fourth quarter of 2027, $1.86 for the third quarter of 2028, and $6.98 for fiscal 2028. The revisions suggest modestly softer expectations rather than a major change in the company’s outlook.
• Negative Sentiment: Melius Research reiterated a “Sell” rating and assigned a $59 price target. Its earnings forecasts are substantially below consensus, including $4.58 EPS for fiscal 2026, $4.69 for fiscal 2027, and $5.91 for fiscal 2028. The firm also projects $1.08 EPS for the third quarter of 2026 and $1.23 for the fourth quarter, reinforcing concerns about near-term profitability.
• Negative Sentiment: The analyst outlook is mixed but leans bearish. Zacks’ minor estimate cuts and Hold rating contrast with Melius Research’s Sell recommendation and below-consensus forecasts. This divergence can pressure the stock because investors may focus on the possibility that housing demand, pricing, or margins will remain weaker than expected.

About Meritage Homes

Meritage Homes Corporation is a residential construction company that designs and builds single-family homes in the United States. The company primarily serves entry-level and first-time move-up buyers, offering homes in a range of floor plans, sizes and price points. Its communities typically feature energy-efficient designs and include standard features intended to improve home performance, comfort and affordability.

Meritage Homes develops communities in selected markets across the South, Southeast and West, including areas of Arizona, California, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee and Texas.