Meritage Homes (NYSE:MTH) Stock Gets Downgrade from Zacks Research

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

A number of other analysts have also commented on MTH. The Goldman Sachs Group reissued a “buy” rating and set a $93.00 price objective (up from $82.00) on shares of Meritage Homes in a report on Friday, July 10th. Wall Street Zen upgraded Meritage Homes from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Weiss Ratings cut Meritage Homes from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 18th. Zelman & Associates downgraded Meritage Homes from an “outperform” rating to a “neutral” rating in a report on Tuesday, July 7th. Finally, Evercore set a $65.00 price target on Meritage Homes in a research report on Friday, September 25th. Four analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Meritage Homes currently has an average rating of “Hold” and an average target price of $74.78.

Meritage Homes Stock Down 3.0%

Shares of NYSE MTH opened at $58.82 on Thursday. The stock has a market capitalization of $3.83 billion, a P/E ratio of 12.31, a P/E/G ratio of 4.50 and a beta of 1.33. The company has a 50-day moving average price of $67.73 and a 200-day moving average price of $68.82. Meritage Homes has a 1 year low of $58.03 and a 1 year high of $85.38. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.97 and a quick ratio of 1.97.

Meritage Homes (NYSE:MTH) last posted its earnings results on Wednesday, July 29th. The construction company reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.30 by $0.12. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. The company had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the prior year, the business posted $2.04 EPS. The firm’s revenue was down 14.1% compared to the same quarter last year. On average, equities research analysts forecast that Meritage Homes will post 4.97 EPS for the current fiscal year.

Hedge Funds Weigh In On Meritage Homes

Several hedge funds have recently modified their holdings of the company. GAMMA Investing LLC grew its holdings in shares of Meritage Homes by 7.4% in the third quarter. GAMMA Investing LLC now owns 5,764 shares of the construction company’s stock valued at $362,000 after acquiring an additional 399 shares in the last quarter. Congress Asset Management Co. increased its position in shares of Meritage Homes by 21.6% during the third quarter. Congress Asset Management Co. now owns 38,296 shares of the construction company’s stock valued at $2,407,000 after acquiring an additional 6,793 shares during the last quarter. Versant Capital Management Inc lifted its holdings in Meritage Homes by 36.8% during the third quarter. Versant Capital Management Inc now owns 1,848 shares of the construction company’s stock worth $116,000 after acquiring an additional 497 shares during the period. QRG Capital Management Inc. lifted its holdings in Meritage Homes by 6.3% during the second quarter. QRG Capital Management Inc. now owns 9,377 shares of the construction company’s stock worth $786,000 after acquiring an additional 559 shares during the period. Finally, Envestnet Portfolio Solutions Inc. boosted its position in Meritage Homes by 7.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 8,279 shares of the construction company’s stock worth $694,000 after purchasing an additional 564 shares during the last quarter. Institutional investors own 98.44% of the company’s stock.

Trending Headlines about 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.

Meritage Homes Company Profile

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.