Meritage Homes (NYSE:MTH) Sets New 52-Week Low – Here’s Why

Meritage Homes Co. (NYSE:MTH) shares hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $72.60 and last traded at $73.05, with a volume of 22998 shares trading hands. The stock had previously closed at $75.21.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on MTH shares. Wedbush restated a “neutral” rating and issued a $103.00 price target on shares of Meritage Homes in a research note on Tuesday, February 4th. The Goldman Sachs Group dropped their target price on shares of Meritage Homes from $117.50 to $100.00 and set a “buy” rating for the company in a research report on Tuesday, January 14th. Keefe, Bruyette & Woods cut their target price on shares of Meritage Homes from $97.00 to $90.00 and set a “market perform” rating for the company in a research note on Thursday, February 6th. StockNews.com cut shares of Meritage Homes from a “hold” rating to a “sell” rating in a research note on Saturday, January 11th. Finally, UBS Group cut their price objective on Meritage Homes from $126.00 to $118.00 and set a “buy” rating for the company in a research report on Wednesday, January 8th. One analyst has rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $106.25.

Meritage Homes Stock Performance

The business’s fifty day moving average price is $82.98 and its two-hundred day moving average price is $91.29. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.75 and a current ratio of 1.61. The stock has a market capitalization of $5.28 billion, a P/E ratio of 5.57 and a beta of 1.88.

Meritage Homes (NYSE:MTH) last issued its quarterly earnings data on Wednesday, January 29th. The construction company reported $4.72 earnings per share for the quarter, topping the consensus estimate of $4.55 by $0.17. Meritage Homes had a return on equity of 15.90% and a net margin of 12.29%. As a group, sell-side analysts forecast that Meritage Homes Co. will post 10.02 earnings per share for the current year.

Meritage Homes Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Tuesday, December 17th were issued a dividend of $0.375 per share. The ex-dividend date was Tuesday, December 17th. This represents a $1.50 annualized dividend and a yield of 2.06%. Meritage Homes’s payout ratio is presently 11.47%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Intech Investment Management LLC raised its holdings in shares of Meritage Homes by 65.7% in the third quarter. Intech Investment Management LLC now owns 17,259 shares of the construction company’s stock worth $3,539,000 after buying an additional 6,843 shares during the period. Allspring Global Investments Holdings LLC boosted its holdings in Meritage Homes by 32.1% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 47,546 shares of the construction company’s stock valued at $9,750,000 after acquiring an additional 11,558 shares during the period. Signaturefd LLC grew its position in Meritage Homes by 125.2% in the 3rd quarter. Signaturefd LLC now owns 509 shares of the construction company’s stock valued at $104,000 after acquiring an additional 283 shares during the last quarter. SG Americas Securities LLC increased its stake in Meritage Homes by 47.3% in the third quarter. SG Americas Securities LLC now owns 1,364 shares of the construction company’s stock worth $280,000 after purchasing an additional 438 shares during the period. Finally, CWM LLC lifted its position in shares of Meritage Homes by 15.5% during the third quarter. CWM LLC now owns 433 shares of the construction company’s stock worth $89,000 after purchasing an additional 58 shares during the last quarter. 98.44% of the stock is owned by hedge funds and other institutional investors.

About Meritage Homes

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.