Meritage Homes (NYSE:MTH) Posts Earnings Results, Beats Expectations By $1.52 EPS

Meritage Homes (NYSE:MTH) posted its quarterly earnings results on Wednesday. The construction company reported $5.06 EPS for the quarter, topping the consensus estimate of $3.54 by $1.52, reports. The business had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Meritage Homes had a net margin of 12.54% and a return on equity of 17.63%. Meritage Homes updated its FY24 guidance to $19.20-20.70 EPS and its FY 2024 guidance to 19.200-20.700 EPS.

Meritage Homes Stock Performance

MTH traded up $4.41 during trading on Friday, hitting $169.48. The stock had a trading volume of 593,929 shares, compared to its average volume of 339,394. The company has a current ratio of 1.90, a quick ratio of 1.77 and a debt-to-equity ratio of 0.21. Meritage Homes has a 12 month low of $109.23 and a 12 month high of $179.68. The company has a 50 day simple moving average of $159.56 and a 200-day simple moving average of $152.95. The firm has a market cap of $6.16 billion, a PE ratio of 7.90 and a beta of 1.77.

Meritage Homes Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Friday, March 15th were issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 1.77%. The ex-dividend date was Thursday, March 14th. This is an increase from Meritage Homes’s previous quarterly dividend of $0.27. Meritage Homes’s dividend payout ratio (DPR) is 13.99%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on MTH shares. StockNews.com raised shares of Meritage Homes from a “hold” rating to a “buy” rating in a research note on Friday. Wedbush reaffirmed an “underperform” rating and set a $148.00 price target on shares of Meritage Homes in a research note on Thursday. Seaport Res Ptn cut Meritage Homes from a “buy” rating to a “neutral” rating in a research note on Monday, January 22nd. The Goldman Sachs Group increased their price objective on Meritage Homes from $151.00 to $182.00 and gave the stock a “neutral” rating in a report on Thursday, January 11th. Finally, Zelman & Associates upgraded shares of Meritage Homes from a “neutral” rating to an “outperform” rating in a research note on Monday, February 26th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $172.67.

Insider Buying and Selling at Meritage Homes

In related news, CEO Phillippe Lord sold 2,500 shares of the business’s stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $162.79, for a total transaction of $406,975.00. Following the completion of the transaction, the chief executive officer now owns 100,266 shares of the company’s stock, valued at approximately $16,322,302.14. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, CEO Phillippe Lord sold 2,500 shares of the firm’s stock in a transaction on Wednesday, March 13th. The shares were sold at an average price of $162.79, for a total value of $406,975.00. Following the sale, the chief executive officer now owns 100,266 shares in the company, valued at $16,322,302.14. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CAO Alison Sasser sold 231 shares of the company’s stock in a transaction on Friday, February 16th. The shares were sold at an average price of $152.99, for a total transaction of $35,340.69. Following the transaction, the chief accounting officer now owns 1,859 shares of the company’s stock, valued at $284,408.41. The disclosure for this sale can be found here. Insiders sold 3,998 shares of company stock worth $635,171 over the last ninety days. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Meritage Homes

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Moody Aldrich Partners LLC increased its position in shares of Meritage Homes by 67.7% during the fourth quarter. Moody Aldrich Partners LLC now owns 33,536 shares of the construction company’s stock valued at $5,842,000 after purchasing an additional 13,538 shares during the period. Louisiana State Employees Retirement System acquired a new position in shares of Meritage Homes in the 4th quarter valued at $3,205,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Meritage Homes by 48.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 25,235 shares of the construction company’s stock worth $4,396,000 after acquiring an additional 8,225 shares during the period. Canada Pension Plan Investment Board boosted its position in shares of Meritage Homes by 388.4% during the 3rd quarter. Canada Pension Plan Investment Board now owns 42,000 shares of the construction company’s stock valued at $5,140,000 after acquiring an additional 33,400 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in Meritage Homes by 38.1% in the third quarter. AQR Capital Management LLC now owns 52,029 shares of the construction company’s stock valued at $6,368,000 after acquiring an additional 14,362 shares during the period. 98.44% of the stock is currently owned by institutional investors.

Meritage Homes Company Profile

Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family attached and detached homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; and constructs, markets, and sells homes for entry-level and first move-up buyers in Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.