Zacks Research upgraded shares of Meritage Homes (NYSE:MTH – Free Report) from a strong sell rating to a hold rating in a report issued on Monday morning,Zacks.com reports. Zacks Research also issued estimates for Meritage Homes’ Q1 2026 earnings at $1.11 EPS, Q2 2026 earnings at $1.75 EPS, Q3 2026 earnings at $1.58 EPS, Q4 2026 earnings at $1.65 EPS, FY2026 earnings at $6.10 EPS, Q1 2027 earnings at $1.32 EPS, Q2 2027 earnings at $1.97 EPS, Q3 2027 earnings at $1.81 EPS, Q4 2027 earnings at $1.95 EPS, FY2027 earnings at $7.04 EPS, Q1 2028 earnings at $1.52 EPS, FY2028 earnings at $8.15 EPS and FY2028 earnings at $8.17 EPS.
A number of other equities research analysts have also weighed in on MTH. Bank of America reaffirmed a “neutral” rating and set a $82.00 target price (up from $75.00) on shares of Meritage Homes in a research note on Friday, January 16th. Truist Financial assumed coverage on shares of Meritage Homes in a research report on Wednesday, March 4th. They set a “buy” rating and a $90.00 price target for the company. The Goldman Sachs Group reissued a “buy” rating and set a $90.00 price target on shares of Meritage Homes in a research report on Tuesday, January 13th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Meritage Homes in a report on Monday, December 29th. Finally, UBS Group set a $95.00 target price on shares of Meritage Homes in a report on Friday, January 30th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $84.33.
Read Our Latest Analysis on Meritage Homes
Meritage Homes Price Performance
Meritage Homes (NYSE:MTH – Get Free Report) last released its earnings results on Wednesday, January 28th. The construction company reported $1.67 EPS for the quarter, beating the consensus estimate of $1.55 by $0.12. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. Meritage Homes had a net margin of 7.73% and a return on equity of 9.28%. The firm’s quarterly revenue was down 11.9% compared to the same quarter last year. During the same quarter last year, the firm earned $4.72 EPS. On average, equities research analysts anticipate that Meritage Homes will post 9.44 earnings per share for the current fiscal year.
Meritage Homes Increases Dividend
The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were given a $0.48 dividend. The ex-dividend date was Tuesday, March 17th. This is an increase from Meritage Homes’s previous quarterly dividend of $0.43. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.9%. Meritage Homes’s dividend payout ratio (DPR) is currently 30.38%.
Insiders Place Their Bets
In other Meritage Homes news, CEO Phillippe Lord sold 32,820 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $76.49, for a total value of $2,510,401.80. Following the completion of the transaction, the chief executive officer directly owned 260,389 shares in the company, valued at $19,917,154.61. This represents a 11.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Javier Feliciano sold 3,580 shares of the business’s stock in a transaction 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 completion of the transaction, the executive vice president directly owned 44,935 shares in the company, valued at $3,425,844.40. This trade represents a 7.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 47,622 shares of company stock worth $3,640,273 over the last three months. 2.20% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Meritage Homes
Several hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its stake in Meritage Homes by 0.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,901,851 shares of the construction company’s stock valued at $190,943,000 after purchasing an additional 16,338 shares in the last quarter. Capital World Investors raised its stake in Meritage Homes by 44.3% during the third quarter. Capital World Investors now owns 1,987,850 shares of the construction company’s stock valued at $143,980,000 after purchasing an additional 609,866 shares in the last quarter. Greenhaven Associates Inc. raised its stake in shares of Meritage Homes by 0.9% in the fourth quarter. Greenhaven Associates Inc. now owns 1,465,340 shares of the construction company’s stock valued at $96,419,000 after acquiring an additional 12,386 shares during the period. Balyasny Asset Management L.P. raised its stake in shares of Meritage Homes by 58.9% in 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 acquiring an additional 527,265 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake in shares of Meritage Homes by 58.6% in 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 acquiring an additional 391,297 shares during the period. Hedge funds and other institutional investors own 98.44% of the company’s stock.
Meritage Homes News Roundup
Here are the key news stories impacting Meritage Homes this week:
- Positive Sentiment: Zacks Research raised several near‑term and multi‑year EPS forecasts for MTH — including Q1–Q4 2026 quarterlies, FY2026 (to $6.10), and lifts to FY2027/FY2028 — suggesting better-than-expected earnings trajectory over the next two years. Zacks still carries a “Hold” rating. MarketBeat: MTH coverage
- Positive Sentiment: Wolfe Research raised its Q3 2026 EPS estimate sharply to $2.03 (from $1.67), indicating at least one major shop sees a stronger mid‑year recovery in margins or closings. MarketBeat: MTH coverage
- Neutral Sentiment: Many of the Zacks increases are modest (e.g., +$0.01–$0.12 per quarter) and the firm retains a “Hold” rating — positive model tweaks but no upgrade in recommendation. This tempers the bullish signal. MarketBeat: MTH coverage
- Negative Sentiment: Wolfe Research cut Q2 2026 (to $1.50 from $1.96) and Q4 2026 (to $0.97 from $1.32) estimates — a notable intra‑firm deterioration that highlights potential near‑term volatility in closings/timing or margin pressure. MarketBeat: MTH coverage
- Negative Sentiment: An external article flags an earnings downgrade and market challenges for Meritage, reinforcing risk that macro or demand pressures could hurt short‑term results and sentiment. Meritage Homes Faces Earnings Downgrade Amid Market Challenges
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.
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