Zacks Research Forecasts Reduced Earnings for Meritage Homes

Meritage Homes Corporation (NYSE:MTH) – Zacks Research lowered their FY2026 earnings per share (EPS) estimates for Meritage Homes in a research report issued on Friday, October 9th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $5.00 per share for the year, down from their previous forecast of $5.01. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Meritage Homes’ current full-year earnings is $4.97 per share. Zacks Research also issued estimates for Meritage Homes’ Q4 2027 earnings at $1.78 EPS, FY2027 earnings at $5.86 EPS, Q3 2028 earnings at $1.86 EPS and FY2028 earnings at $6.98 EPS.

Other research analysts have also recently issued reports about the stock. The Goldman Sachs Group set a $82.00 price target on shares of Meritage Homes and gave the company a “buy” rating in a research report on Monday. 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 note on Friday, July 31st. Wall Street Zen upgraded shares of Meritage Homes from a “sell” rating to a “hold” rating in a report on Saturday, July 25th. Zelman & Associates lowered shares of Meritage Homes from an “outperform” rating to a “neutral” rating in a report on Tuesday, July 7th. Finally, Evercore set a $65.00 price objective on shares of Meritage Homes in a research note on Friday, September 25th. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Meritage Homes has a consensus rating of “Hold” and a consensus price target of $73.56.

Meritage Homes Stock Performance

NYSE:MTH opened at $57.78 on Monday. The business has a 50 day moving average of $67.44 and a 200 day moving average of $68.85. The company has a market capitalization of $3.77 billion, a price-to-earnings ratio of 12.09, a PEG ratio of 4.37 and a beta of 1.33. Meritage Homes has a 1-year low of $57.63 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 announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.30 by $0.12. The firm had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.43 billion. Meritage Homes had a return on equity of 7.13% and a net margin of 6.11%. The company’s revenue was down 14.1% on a year-over-year basis. During the same period in the prior year, the company earned $2.04 EPS.

Meritage Homes Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a $0.48 dividend. The ex-dividend date 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 currently 40.17%.

Institutional Investors Weigh In On Meritage Homes

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MTH. GAMMA Investing LLC increased its position 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 during the period. Congress Asset Management Co. grew its stake in shares of Meritage Homes by 21.6% in the third quarter. Congress Asset Management Co. now owns 38,296 shares of the construction company’s stock worth $2,407,000 after purchasing an additional 6,793 shares during the last quarter. Versant Capital Management Inc grew its stake in shares of Meritage Homes by 36.8% in the third quarter. Versant Capital Management Inc now owns 1,848 shares of the construction company’s stock worth $116,000 after purchasing an additional 497 shares during the last quarter. QRG Capital Management Inc. grew its stake in shares of Meritage Homes by 6.3% in the second quarter. QRG Capital Management Inc. now owns 9,377 shares of the construction company’s stock worth $786,000 after purchasing an additional 559 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its holdings in Meritage Homes by 7.3% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 8,279 shares of the construction company’s stock valued at $694,000 after purchasing an additional 564 shares during the period. 98.44% of the stock is currently owned by institutional investors.

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.