Wedbush Downgrades Meritage Homes (MTH) to Neutral

Wedbush lowered shares of Meritage Homes (NYSE:MTH) from an outperform rating to a neutral rating in a research report report published on Thursday morning, Marketbeat.com reports. The firm currently has $41.00 price objective on the construction company’s stock. Wedbush also issued estimates for Meritage Homes’ Q1 2020 earnings at $0.93 EPS, Q2 2020 earnings at $1.44 EPS, Q3 2020 earnings at $1.60 EPS and Q4 2020 earnings at $1.84 EPS. The analysts noted that the move was a valuation call.

A number of other analysts have also recently weighed in on the stock. ValuEngine upgraded shares of Meritage Homes from a sell rating to a hold rating in a research note on Wednesday, September 12th. JPMorgan Chase & Co. cut shares of Meritage Homes from an overweight rating to a neutral rating and decreased their price target for the stock from $55.00 to $46.00 in a research note on Friday, September 21st. Zacks Investment Research cut shares of Meritage Homes from a hold rating to a sell rating in a research note on Wednesday, October 10th. Bank of America set a $51.00 price target on shares of Meritage Homes and gave the stock a buy rating in a research note on Thursday, October 11th. Finally, JMP Securities reiterated a buy rating and set a $48.00 price target (down previously from $58.00) on shares of Meritage Homes in a research note on Thursday, October 11th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and five have issued a buy rating to the company. Meritage Homes presently has a consensus rating of Hold and a consensus price target of $46.55.

Shares of Meritage Homes stock opened at $41.35 on Thursday. Meritage Homes has a 12-month low of $32.02 and a 12-month high of $53.55. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $1.68 billion, a PE ratio of 10.66, a P/E/G ratio of 0.66 and a beta of 0.91.

Meritage Homes (NYSE:MTH) last issued its earnings results on Wednesday, October 24th. The construction company reported $1.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.36 by ($0.03). Meritage Homes had a net margin of 5.43% and a return on equity of 12.56%. The company had revenue of $884.58 million during the quarter, compared to analyst estimates of $899.55 million. As a group, research analysts expect that Meritage Homes will post 5.17 earnings per share for the current year.

In other news, Director Dana Bradford bought 1,500 shares of Meritage Homes stock in a transaction dated Tuesday, November 6th. The stock was bought at an average price of $37.70 per share, for a total transaction of $56,550.00. Following the purchase, the director now owns 54,500 shares of the company’s stock, valued at $2,054,650. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Javier Feliciano sold 946 shares of the firm’s stock in a transaction on Tuesday, November 20th. The stock was sold at an average price of $36.66, for a total transaction of $34,680.36. The disclosure for this sale can be found here. 5.50% of the stock is owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in MTH. PNC Financial Services Group Inc. lifted its stake in shares of Meritage Homes by 46.0% in the 2nd quarter. PNC Financial Services Group Inc. now owns 3,987 shares of the construction company’s stock worth $175,000 after acquiring an additional 1,256 shares during the period. Tower Research Capital LLC TRC purchased a new position in shares of Meritage Homes in the 3rd quarter valued at about $227,000. Paloma Partners Management Co purchased a new position in shares of Meritage Homes in the 2nd quarter valued at about $232,000. Commonwealth Bank of Australia purchased a new position in shares of Meritage Homes in the 3rd quarter valued at about $243,000. Finally, Riverhead Capital Management LLC increased its holdings in shares of Meritage Homes by 27.6% in the 3rd quarter. Riverhead Capital Management LLC now owns 6,469 shares of the construction company’s stock valued at $258,000 after purchasing an additional 1,400 shares in the last quarter. Institutional investors own 96.50% of the company’s stock.

About Meritage Homes

Meritage Homes Corporation designs and builds single-family 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 various homebuyers, including first-time, move-up, active-adult, and luxury homes under the Meritage Homes brand name.

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