Shellback Capital LP Makes New Investment in Meritage Homes Co. (NYSE:MTH)

Shellback Capital LP bought a new stake in shares of Meritage Homes Co. (NYSE:MTH) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 60,242 shares of the construction company’s stock, valued at approximately $9,266,000. Shellback Capital LP owned approximately 0.08% of Meritage Homes as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Pinnacle Holdings LLC bought a new position in shares of Meritage Homes in the fourth quarter worth approximately $31,000. Allworth Financial LP lifted its holdings in Meritage Homes by 545.5% in the fourth quarter. Allworth Financial LP now owns 213 shares of the construction company’s stock worth $33,000 after buying an additional 180 shares during the period. Venturi Wealth Management LLC purchased a new position in shares of Meritage Homes during the 4th quarter worth approximately $92,000. Smartleaf Asset Management LLC grew its holdings in shares of Meritage Homes by 235.1% during the 4th quarter. Smartleaf Asset Management LLC now owns 677 shares of the construction company’s stock worth $104,000 after acquiring an additional 475 shares during the period. Finally, CIBC Private Wealth Group LLC raised its position in shares of Meritage Homes by 38.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,122 shares of the construction company’s stock worth $173,000 after acquiring an additional 314 shares in the last quarter. Institutional investors own 98.44% of the company’s stock.

Meritage Homes Price Performance

Shares of NYSE MTH opened at $67.69 on Friday. Meritage Homes Co. has a twelve month low of $59.27 and a twelve month high of $106.99. The company has a 50 day moving average of $68.35 and a 200 day moving average of $78.45. The firm has a market cap of $4.86 billion, a P/E ratio of 5.18 and a beta of 1.50. The company has a quick ratio of 1.75, a current ratio of 1.61 and a debt-to-equity ratio of 0.26.

Meritage Homes (NYSE:MTH) last released its quarterly earnings data on Wednesday, April 23rd. The construction company reported $1.69 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.02). Meritage Homes had a net margin of 12.29% and a return on equity of 15.90%. The company had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.34 billion. During the same period in the previous year, the firm earned $5.06 earnings per share. The firm’s revenue for the quarter was down 8.5% on a year-over-year basis. As a group, research analysts expect that Meritage Homes Co. will post 9.44 EPS for the current fiscal year.

Meritage Homes Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were given a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 2.54%. This is a boost from Meritage Homes’s previous quarterly dividend of $0.38. The ex-dividend date was Monday, March 17th. Meritage Homes’s dividend payout ratio (DPR) is presently 14.06%.

Insider Buying and Selling at Meritage Homes

In related news, CAO Alison Sasser sold 676 shares of the firm’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $72.03, for a total value of $48,692.28. Following the transaction, the chief accounting officer now owns 5,933 shares of the company’s stock, valued at approximately $427,353.99. This trade represents a 10.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 2.20% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Seaport Res Ptn upgraded Meritage Homes from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 6th. Keefe, Bruyette & Woods dropped their target price on shares of Meritage Homes from $90.00 to $77.00 and set a “market perform” rating on the stock in a report on Monday, April 28th. Bank of America assumed coverage on shares of Meritage Homes in a research note on Monday, May 5th. They issued a “buy” rating and a $82.00 price target for the company. JPMorgan Chase & Co. lowered their price target on shares of Meritage Homes from $89.00 to $70.00 and set a “neutral” rating for the company in a research report on Thursday, May 1st. Finally, UBS Group set a $107.00 price objective on shares of Meritage Homes in a report on Friday, April 25th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $97.72.

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.