Meritage Homes (NYSE:MTH) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of Meritage Homes (NYSE:MTH) from a hold rating to a strong sell rating in a research report released on Thursday,Zacks reports.

A number of other equities analysts have also weighed in on MTH. Citigroup restated a “market outperform” rating on shares of Meritage Homes in a research note on Monday, July 6th. Melius Research started coverage on shares of Meritage Homes in a research report on Tuesday. They issued a “sell” rating and a $59.00 price objective on the stock. Wall Street Zen raised shares of Meritage Homes from a “sell” rating to a “hold” rating in a research note on Saturday, July 25th. Truist Financial set a $72.00 price objective on shares of Meritage Homes and gave the company a “hold” rating in a research report on Wednesday, September 16th. Finally, Zelman & Associates lowered shares of Meritage Homes from an “outperform” rating to a “neutral” rating in a research report on Tuesday, July 7th. Four investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $74.78.

Meritage Homes Stock Down 3.0%

MTH stock opened at $58.82 on Thursday. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $3.83 billion, a PE ratio of 12.31, a PEG ratio of 4.50 and a beta of 1.33. Meritage Homes has a twelve month low of $58.03 and a twelve month high of $85.38. The stock has a 50-day simple moving average of $67.73 and a two-hundred day simple moving average of $68.82.

Meritage Homes (NYSE:MTH) last announced its quarterly earnings results on Wednesday, July 29th. The construction company reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.30 by $0.12. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.43 billion. Meritage Homes had a net margin of 6.11% and a return on equity of 7.13%. The company’s revenue for the quarter was down 14.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.04 earnings per share. On average, equities analysts predict that Meritage Homes will post 4.97 EPS for the current fiscal year.

Meritage Homes Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Tuesday, September 15th. Meritage Homes’s payout ratio is presently 40.17%.

Hedge Funds Weigh In On Meritage Homes

Several institutional investors and hedge funds have recently made changes to their positions in MTH. Glenmede Trust Co. NA grew its holdings in shares of Meritage Homes by 2.0% in the first quarter. Glenmede Trust Co. NA now owns 9,223 shares of the construction company’s stock worth $570,000 after purchasing an additional 179 shares during the last quarter. Assetmark Inc. raised its holdings in Meritage Homes by 43.9% during the 1st quarter. Assetmark Inc. now owns 774 shares of the construction company’s stock valued at $48,000 after buying an additional 236 shares during the last quarter. Essential Partners LLC raised its holdings in Meritage Homes by 163.8% during the 1st quarter. Essential Partners LLC now owns 401 shares of the construction company’s stock valued at $25,000 after buying an additional 249 shares during the last quarter. Sequoia Financial Advisors LLC boosted its position in Meritage Homes by 9.1% during the 1st quarter. Sequoia Financial Advisors LLC now owns 3,772 shares of the construction company’s stock valued at $233,000 after buying an additional 316 shares during the period. Finally, GAMMA Investing LLC boosted its position in Meritage Homes by 7.4% during the 3rd quarter. GAMMA Investing LLC now owns 5,764 shares of the construction company’s stock valued at $362,000 after buying an additional 399 shares during the period. Institutional investors own 98.44% of the company’s stock.

Meritage Homes News Summary

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

• Neutral Sentiment: Zacks Research maintained a “Hold” rating but made small downward revisions to its earnings forecasts. Estimates were reduced to $5.00 EPS for fiscal 2026, $5.86 for fiscal 2027, $1.78 for the fourth quarter of 2027, $1.86 for the third quarter of 2028, and $6.98 for fiscal 2028. The revisions suggest modestly softer expectations rather than a major change in the company’s outlook.
• Negative Sentiment: Melius Research reiterated a “Sell” rating and assigned a $59 price target. Its earnings forecasts are substantially below consensus, including $4.58 EPS for fiscal 2026, $4.69 for fiscal 2027, and $5.91 for fiscal 2028. The firm also projects $1.08 EPS for the third quarter of 2026 and $1.23 for the fourth quarter, reinforcing concerns about near-term profitability.
• Negative Sentiment: The analyst outlook is mixed but leans bearish. Zacks’ minor estimate cuts and Hold rating contrast with Melius Research’s Sell recommendation and below-consensus forecasts. This divergence can pressure the stock because investors may focus on the possibility that housing demand, pricing, or margins will remain weaker than expected.

Meritage Homes Company Profile

Meritage Homes Corporation is a residential construction company that designs and builds single-family homes in the United States. The company primarily serves entry-level and first-time move-up buyers, offering homes in a range of floor plans, sizes and price points. Its communities typically feature energy-efficient designs and include standard features intended to improve home performance, comfort and affordability.

Meritage Homes develops communities in selected markets across the South, Southeast and West, including areas of Arizona, California, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee and Texas.