Wolfe Research Cuts Earnings Estimates for Meritage Homes

Meritage Homes Corporation (NYSE:MTH) – Investment analysts at Wolfe Research lowered their Q4 2026 earnings per share (EPS) estimates for shares of Meritage Homes in a research report issued on Tuesday, October 6th. Wolfe Research analyst T. Allinson now anticipates that the construction company will earn $1.33 per share for the quarter, down from their previous forecast of $1.53. The consensus estimate for Meritage Homes’ current full-year earnings is $4.94 per share.

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

Other equities analysts have also issued reports about the stock. UBS Group reaffirmed a “buy” rating and issued a $88.00 price objective (up from $86.00) on shares of Meritage Homes in a research report on Friday, July 31st. Weiss Ratings downgraded shares of Meritage Homes from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. Evercore set a $65.00 price target on shares of Meritage Homes in a research note on Friday, September 25th. Zacks Research cut shares of Meritage Homes from a “hold” rating to a “strong sell” rating in a report on Thursday, October 8th. Finally, The Goldman Sachs Group set a $82.00 price objective on shares of Meritage Homes and gave the stock a “buy” rating in a research note on Monday. Four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Meritage Homes currently has a consensus rating of “Hold” and an average price target of $73.56.

Meritage Homes Price Performance

Shares of MTH stock opened at $58.23 on Wednesday. Meritage Homes has a fifty-two week low of $57.63 and a fifty-two week high of $85.38. The firm has a market capitalization of $3.79 billion, a price-to-earnings ratio of 12.18, a PEG ratio of 4.33 and a beta of 1.33. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.97 and a current ratio of 1.97. The stock’s 50-day simple moving average is $67.11 and its 200-day simple moving average is $68.82.

Meritage Homes Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 3.3%. Meritage Homes’s payout ratio is 40.17%.

Institutional Investors Weigh In On Meritage Homes

A number of large investors have recently bought and sold shares of the company. Glenmede Trust Co. NA boosted its holdings in Meritage Homes by 2.0% during the first quarter. Glenmede Trust Co. NA now owns 9,223 shares of the construction company’s stock worth $570,000 after buying an additional 179 shares in the last quarter. Assetmark Inc. lifted its position in shares of Meritage Homes by 43.9% during the 1st quarter. Assetmark Inc. now owns 774 shares of the construction company’s stock valued at $48,000 after acquiring an additional 236 shares during the period. Essential Partners LLC boosted its stake in shares of Meritage Homes by 163.8% during the 1st quarter. Essential Partners LLC now owns 401 shares of the construction company’s stock worth $25,000 after acquiring an additional 249 shares in the last quarter. Sequoia Financial Advisors LLC boosted its stake in shares of Meritage Homes by 9.1% during the 1st quarter. Sequoia Financial Advisors LLC now owns 3,772 shares of the construction company’s stock worth $233,000 after acquiring an additional 316 shares in the last quarter. Finally, GAMMA Investing LLC grew its holdings in shares of Meritage Homes by 7.4% in the 3rd quarter. GAMMA Investing LLC now owns 5,764 shares of the construction company’s stock worth $362,000 after acquiring an additional 399 shares during the period. Hedge funds and other institutional investors own 98.44% of the company’s stock.

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.