JPMorgan Chase & Co. Upgrades Meritage Homes (NYSE:MTH) to Overweight

Meritage Homes (NYSE:MTH) was upgraded by investment analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating in a research note issued on Thursday, The Fly reports. The brokerage presently has a $143.00 price objective on the construction company’s stock, down from their previous price objective of $158.00. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 40.78% from the stock’s previous close.

A number of other research analysts have also recently weighed in on the stock. KeyCorp lifted their price objective on shares of Meritage Homes from $120.00 to $130.00 and gave the company an “overweight” rating in a report on Friday, July 30th. Zacks Investment Research cut shares of Meritage Homes from a “buy” rating to a “hold” rating and set a $102.00 target price for the company. in a research note on Tuesday, October 5th. The Goldman Sachs Group cut their target price on shares of Meritage Homes from $117.00 to $110.00 and set a “neutral” rating for the company in a research note on Wednesday, June 30th. Finally, Wolfe Research raised shares of Meritage Homes from a “peer perform” rating to an “outperform” rating and set a $130.00 target price for the company in a research note on Wednesday, August 4th. Six research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, Meritage Homes currently has an average rating of “Hold” and an average target price of $117.67.

NYSE MTH opened at $101.58 on Thursday. The company has a market capitalization of $3.82 billion, a PE ratio of 6.95 and a beta of 1.71. The company has a fifty day moving average of $105.57 and a 200 day moving average of $101.54. Meritage Homes has a 1 year low of $78.00 and a 1 year high of $120.19. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.67 and a quick ratio of 1.67.

Meritage Homes (NYSE:MTH) last posted its earnings results on Wednesday, July 28th. The construction company reported $4.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.45 by $0.91. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.16 billion. Meritage Homes had a net margin of 11.38% and a return on equity of 23.24%. Research analysts expect that Meritage Homes will post 18.96 earnings per share for the current year.

In other Meritage Homes news, COO Clinton Szubinski sold 875 shares of the business’s stock in a transaction dated Monday, August 16th. The shares were sold at an average price of $114.75, for a total value of $100,406.25. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 1.80% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Eaton Vance Management purchased a new stake in Meritage Homes during the 1st quarter worth approximately $29,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Meritage Homes in the 2nd quarter valued at approximately $32,000. Van ECK Associates Corp increased its position in shares of Meritage Homes by 128.4% in the 2nd quarter. Van ECK Associates Corp now owns 482 shares of the construction company’s stock valued at $45,000 after purchasing an additional 271 shares during the last quarter. Private Capital Group LLC increased its position in shares of Meritage Homes by 13.4% in the 3rd quarter. Private Capital Group LLC now owns 1,055 shares of the construction company’s stock valued at $102,000 after purchasing an additional 125 shares during the last quarter. Finally, US Bancorp DE increased its position in shares of Meritage Homes by 13.4% in the 2nd quarter. US Bancorp DE now owns 1,292 shares of the construction company’s stock valued at $122,000 after purchasing an additional 153 shares during the last quarter. 95.87% of the stock is currently owned by hedge funds and other institutional investors.

About Meritage Homes

Meritage Homes Corp. is a holding company, which engages in the development and sale of residential properties. It operates through two segments: Homebuilding and Financial Services. The Homebuilding segment acquires constructs and markets single-detached houses. The Financial Services segment includes the operations of the company’s subsidiary, Carefree Title.

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