Meritage Homes (NYSE:MTH) Downgraded by Wedbush to “Underperform”

Wedbush cut shares of Meritage Homes (NYSE:MTH) from a neutral rating to an underperform rating in a research report sent to investors on Tuesday morning, MarketBeat Ratings reports. They currently have $148.00 target price on the construction company’s stock, down from their previous target price of $155.00.

Other equities research analysts have also issued reports about the company. StockNews.com lowered Meritage Homes from a buy rating to a hold rating in a research note on Wednesday, January 31st. Seaport Res Ptn lowered Meritage Homes from a buy rating to a neutral rating in a research report on Monday, January 22nd. The Goldman Sachs Group lifted their target price on Meritage Homes from $151.00 to $182.00 and gave the company a neutral rating in a research report on Thursday, January 11th. Finally, Zelman & Associates raised Meritage Homes from a neutral rating to an outperform rating in a research report on Monday, February 26th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat.com, Meritage Homes has a consensus rating of Hold and an average target price of $172.67.

Meritage Homes Price Performance

Shares of MTH stock opened at $163.76 on Tuesday. Meritage Homes has a 52-week low of $109.23 and a 52-week high of $179.68. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.77 and a current ratio of 1.77. The firm has a market capitalization of $5.95 billion, a P/E ratio of 8.22 and a beta of 1.77. The stock has a 50 day moving average price of $159.32 and a 200 day moving average price of $149.19.

Meritage Homes (NYSE:MTH) last issued its quarterly earnings results on Wednesday, January 31st. The construction company reported $5.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.18 by $0.20. Meritage Homes had a return on equity of 17.03% and a net margin of 12.03%. The firm had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.52 billion. As a group, sell-side analysts predict that Meritage Homes will post 17.72 earnings per share for the current year.

Meritage Homes Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 29th. Stockholders of record on Friday, March 15th were given a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 1.83%. This is a positive change from Meritage Homes’s previous quarterly dividend of $0.27. The ex-dividend date of this dividend was Thursday, March 14th. Meritage Homes’s payout ratio is presently 15.06%.

Insider Transactions at Meritage Homes

In other news, CEO Phillippe Lord sold 2,500 shares of the business’s stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $162.79, for a total value of $406,975.00. Following the completion of the transaction, the chief executive officer now directly owns 100,266 shares of the company’s stock, valued at approximately $16,322,302.14. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In related news, COO Clinton Szubinski sold 797 shares of the business’s stock in a transaction on Tuesday, February 13th. The stock was sold at an average price of $152.62, for a total transaction of $121,638.14. Following the transaction, the chief operating officer now directly owns 5,234 shares in the company, valued at approximately $798,813.08. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Phillippe Lord sold 2,500 shares of the business’s stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $162.79, for a total value of $406,975.00. Following the transaction, the chief executive officer now owns 100,266 shares in the company, valued at $16,322,302.14. The disclosure for this sale can be found here. In the last three months, insiders sold 3,998 shares of company stock valued at $635,171. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hollencrest Capital Management purchased a new stake in Meritage Homes during the 1st quarter valued at about $29,000. Lindbrook Capital LLC grew its stake in Meritage Homes by 91.6% during the 4th quarter. Lindbrook Capital LLC now owns 205 shares of the construction company’s stock valued at $36,000 after purchasing an additional 98 shares during the last quarter. Carmel Capital Partners LLC purchased a new stake in Meritage Homes during the 3rd quarter valued at about $38,000. Parallel Advisors LLC grew its stake in Meritage Homes by 157.6% during the 4th quarter. Parallel Advisors LLC now owns 237 shares of the construction company’s stock valued at $41,000 after purchasing an additional 145 shares during the last quarter. Finally, Principal Securities Inc. purchased a new stake in Meritage Homes during the 4th quarter valued at about $47,000. 98.44% of the stock is currently owned by hedge funds and other institutional investors.

About Meritage Homes

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached 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 entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.