Meritage Homes Corporation (NYSE:MTH) Receives $79.25 Consensus PT from Analysts

Meritage Homes Corporation (NYSE:MTH) has been given a consensus recommendation of “Hold” by the twelve ratings firms that are covering the company, Marketbeat reports. Seven analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $79.25.

MTH has been the topic of several research analyst reports. JPMorgan Chase & Co. lowered their price objective on Meritage Homes from $62.00 to $58.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 28th. UBS Group reiterated a “buy” rating and set a $88.00 target price (up from $86.00) on shares of Meritage Homes in a research report on Friday, July 31st. The Goldman Sachs Group reissued a “buy” rating and set a $93.00 target price (up from $82.00) on shares of Meritage Homes in a research note on Friday, July 10th. Weiss Ratings raised Meritage Homes from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, August 5th. Finally, Citigroup restated a “market outperform” rating on shares of Meritage Homes in a research note on Monday, July 6th.

Hedge Funds Weigh In On Meritage Homes

Institutional investors have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of Meritage Homes in the fourth quarter valued at $63,053,000. Bank of New York Mellon Corp bought a new stake in Meritage Homes in the second quarter worth $68,873,000. Balyasny Asset Management L.P. raised its stake in Meritage Homes by 58.9% during the second quarter. Balyasny Asset Management L.P. now owns 1,423,013 shares of the construction company’s stock valued at $95,299,000 after purchasing an additional 527,265 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in Meritage Homes by 58.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,058,850 shares of the construction company’s stock valued at $75,051,000 after purchasing an additional 391,297 shares in the last quarter. Finally, Sophron Capital Management L.P. bought a new position in Meritage Homes during the second quarter valued at $17,613,000. 98.44% of the stock is owned by hedge funds and other institutional investors.

Meritage Homes Stock Performance

Shares of NYSE MTH opened at $73.21 on Wednesday. The firm has a fifty day moving average price of $75.10 and a 200-day moving average price of $70.33. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.97 and a quick ratio of 1.97. The stock has a market cap of $4.77 billion, a PE ratio of 15.32, a price-to-earnings-growth ratio of 5.35 and a beta of 1.36. Meritage Homes has a 1 year low of $58.03 and a 1 year high of $85.38.

Meritage Homes (NYSE:MTH) last released its earnings results on Wednesday, July 29th. The construction company reported $1.42 earnings per share for the quarter, beating analysts’ consensus estimates of $1.30 by $0.12. The company had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. Meritage Homes’s revenue for the quarter was down 14.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.04 EPS. Equities analysts anticipate that Meritage Homes will post 5.04 earnings per share for the current fiscal year.

Meritage Homes Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were issued a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend was Tuesday, June 16th. Meritage Homes’s payout ratio is 40.17%.

Key Headlines Impacting Meritage Homes

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

• Positive Sentiment: Zacks raised its Q1 2027 EPS estimate to $1.03 from $0.96, suggesting some expected improvement in that quarter.
• Neutral Sentiment: The current full-year consensus EPS estimate is approximately $5.04, while Zacks forecasts FY2026 EPS of $5.01, FY2027 EPS of $5.88 and FY2028 EPS of $7.01.
• Negative Sentiment: Nearer-term estimates were reduced: Q3 2026 EPS fell to $1.25 from $1.41, Q4 2026 EPS to $1.48 from $1.57, and FY2026 EPS to $5.01 from $5.17.
• Negative Sentiment: Several longer-term forecasts were also cut, including FY2027 EPS to $5.88 from $6.10 and FY2028 EPS to $7.01 from $7.36. Zacks lowered Q3 2027 EPS particularly sharply, to $1.48 from $1.72, as well as Q1 and Q2 2028 EPS to $1.12 and $1.89, respectively.
• Negative Sentiment: The revisions indicate analysts now expect weaker profitability than previously projected, which is likely weighing on Read More.. The cautious outlook comes after Meritage’s latest quarterly revenue declined 14.1% year over year, despite an earnings beat.

About Meritage Homes

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.