Meritage Homes (NYSE:MTH) Posts Quarterly Earnings Results

Meritage Homes (NYSE:MTH) posted its quarterly earnings results on Wednesday. The construction company reported $0.86 EPS for the quarter, missing analysts’ consensus estimates of $0.98 by ($0.12), Zacks reports. The company had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.55 billion. Meritage Homes had a return on equity of 8.08% and a net margin of 6.86%.Meritage Homes’s revenue was down 17.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.69 earnings per share.

Meritage Homes Stock Down 1.1%

MTH stock opened at $69.11 on Friday. The stock has a market capitalization of $4.61 billion, a PE ratio of 12.68, a price-to-earnings-growth ratio of 1.60 and a beta of 1.50. The company has a fifty day moving average of $67.47 and a 200-day moving average of $69.41. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.10 and a current ratio of 1.96. Meritage Homes has a one year low of $58.03 and a one year high of $84.74.

Meritage Homes Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were paid a $0.48 dividend. This is a boost from Meritage Homes’s previous quarterly dividend of $0.43. The ex-dividend date was Tuesday, March 17th. This represents a $1.92 annualized dividend and a dividend yield of 2.8%. Meritage Homes’s dividend payout ratio (DPR) is 30.38%.

Insider Buying and Selling

In other Meritage Homes news, EVP Javier Feliciano sold 3,580 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $76.24, for a total transaction of $272,939.20. Following the transaction, the executive vice president owned 44,935 shares in the company, valued at approximately $3,425,844.40. The trade was a 7.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Phillippe Lord sold 32,820 shares of the company’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $76.49, for a total transaction of $2,510,401.80. Following the transaction, the chief executive officer directly owned 260,389 shares in the company, valued at approximately $19,917,154.61. This trade represents a 11.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 47,622 shares of company stock valued at $3,640,273 over the last ninety days. Corporate insiders own 2.50% of the company’s stock.

Hedge Funds Weigh In On Meritage Homes

Hedge funds have recently bought and sold shares of the company. Coldstream Capital Management Inc. acquired a new stake in shares of Meritage Homes during the third quarter valued at $249,000. CI Investments Inc. raised its stake in Meritage Homes by 412.8% in the 4th quarter. CI Investments Inc. now owns 3,533 shares of the construction company’s stock valued at $232,000 after purchasing an additional 2,844 shares during the last quarter. Private Advisor Group LLC acquired a new position in Meritage Homes in the 3rd quarter valued at about $222,000. Orion Porfolio Solutions LLC purchased a new position in Meritage Homes in the 2nd quarter valued at about $221,000. Finally, Virtu Financial LLC purchased a new position in Meritage Homes in the 3rd quarter valued at about $221,000. 98.44% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Wall Street Zen lowered Meritage Homes from a “hold” rating to a “sell” rating in a research report on Saturday, April 11th. Citigroup started coverage on shares of Meritage Homes in a research note on Wednesday, January 7th. They set an “outperform” rating on the stock. Truist Financial set a $80.00 price objective on Meritage Homes and gave the company a “buy” rating in a research note on Thursday, April 16th. The Goldman Sachs Group restated a “buy” rating and set a $90.00 price objective on shares of Meritage Homes in a report on Tuesday, January 13th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Meritage Homes in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $81.11.

Key Headlines Impacting Meritage Homes

Here are the key news stories impacting Meritage Homes this week:

• Positive Sentiment: Management emphasized community growth and disciplined inventory/lot buying that helped offset muted demand — a constructive sign for margins and delivery cadence if demand steadies. MTH Q1 deep dive
• Positive Sentiment: Company reiterated growth plans (land and community expansion) on the earnings call — management is prioritizing controlled growth while repairing margins. Meritage Homes Balances Margin Pain With Growth Plans
• Neutral Sentiment: Full earnings call transcript and slide deck are available for deeper review of backlog, cancellations and pricing trends (useful if you model near-term margin recovery). Earnings Call Transcript
• Negative Sentiment: Q1 results missed expectations: reported Q1 revenue of ~$1.12B and EPS of about $0.86 (both below consensus); revenue was down ~17% YoY and gross profit/margins contracted materially. These topline and margin misses are the primary driver of the share weakness. Press Release
• Negative Sentiment: Q2 EPS guide was lowered to $1.18–$1.46 versus a street consensus near $1.52, signaling management expects continued margin pressure in the near term. Earnings Highlights
• Negative Sentiment: Cash flow and balance-sheet items weakened year-over-year (operating cash down, cash balances lower) and recent insider selling activity was notable — factors that can weigh on investor sentiment until margins recover. QuiverQuant summary
• Neutral Sentiment: Analyst coverage is mixed: median price target ~$76 but a wide range of forecasts reflects uncertainty around demand and margin recovery — monitor revisions and guidance commentary. Analyst Targets

Meritage Homes Company Profile

Meritage Homes Corporation is a national homebuilder and residential developer headquartered in Scottsdale, Arizona. Founded in 1985 as Winchester Homes and later rebranded to Meritage Homes, the company specializes in designing, constructing and selling single‐family detached and attached homes. With a focus on energy efficiency and sustainable building practices, Meritage Homes markets its properties under the GreenSmart program, which integrates high‐performance features aimed at reducing long‐term energy and water consumption for homebuyers.

The company’s core activities encompass land acquisition, residential community planning, home design, construction management and real estate sales.