Wolfe Research Lowers Earnings Estimates for Meritage Homes

Meritage Homes Corporation (NYSE:MTH) – Analysts at Wolfe Research reduced their Q3 2026 EPS estimates for shares of Meritage Homes in a research note issued to investors on Tuesday, October 6th. Wolfe Research analyst T. Allinson now anticipates that the construction company will earn $1.08 per share for the quarter, down from their prior forecast of $1.14. The consensus estimate for Meritage Homes’ current full-year earnings is $4.97 per share. Wolfe Research also issued estimates for Meritage Homes’ FY2026 earnings at $4.67 EPS and FY2027 earnings at $5.86 EPS.

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

A number of other brokerages have also weighed in on MTH. Wall Street Zen upgraded Meritage Homes from a “sell” rating to a “hold” rating in a research note on Saturday, July 25th. Weiss Ratings downgraded Meritage Homes from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, September 18th. Evercore set a $65.00 target price on Meritage Homes in a research report on Friday, September 25th. Truist Financial set a $72.00 target price on Meritage Homes and gave the company a “hold” rating in a research note on Wednesday, September 16th. Finally, UBS Group reissued a “buy” rating and set a $88.00 price target (up from $86.00) on shares of Meritage Homes in a research report on Friday, July 31st. Four equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $73.56.

Meritage Homes Trading Down 1.7%

NYSE:MTH opened at $57.78 on Tuesday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.97 and a current ratio of 1.97. Meritage Homes has a one year low of $57.63 and a one year high of $85.38. The business’s 50-day simple moving average is $67.44 and its 200 day simple moving average is $68.85. The stock has a market cap of $3.77 billion, a price-to-earnings ratio of 12.09, a price-to-earnings-growth ratio of 4.37 and a beta of 1.33.

Meritage Homes Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 3.3%. Meritage Homes’s dividend payout ratio (DPR) is presently 40.17%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Essential Partners LLC raised its holdings in shares of Meritage Homes by 163.8% during the first quarter. Essential Partners LLC now owns 401 shares of the construction company’s stock worth $25,000 after purchasing an additional 249 shares during the period. Assetmark Inc. lifted its position in shares of Meritage Homes by 43.9% in the 1st quarter. Assetmark Inc. now owns 774 shares of the construction company’s stock worth $48,000 after buying an additional 236 shares during the last quarter. IFP Advisors Inc boosted its holdings in shares of Meritage Homes by 767.6% in the 2nd quarter. IFP Advisors Inc now owns 616 shares of the construction company’s stock valued at $52,000 after buying an additional 545 shares during the period. Brown Lisle Cummings Inc. boosted its holdings in shares of Meritage Homes by 150.0% in the 1st quarter. Brown Lisle Cummings Inc. now owns 1,500 shares of the construction company’s stock valued at $93,000 after buying an additional 900 shares during the period. Finally, Versant Capital Management Inc boosted its holdings in shares of Meritage Homes by 62.4% in the 2nd quarter. Versant Capital Management Inc now owns 1,351 shares of the construction company’s stock valued at $113,000 after buying an additional 519 shares during the period. Institutional investors and hedge funds 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.