Wedbush Has Negative Outlook of Meritage Homes Q2 Earnings

Meritage Homes Co. (NYSE:MTH) – Analysts at Wedbush reduced their Q2 2025 earnings estimates for shares of Meritage Homes in a note issued to investors on Monday, February 3rd. Wedbush analyst J. Mccanless now expects that the construction company will earn $2.05 per share for the quarter, down from their previous estimate of $2.80. Wedbush has a “Neutral” rating and a $103.00 price objective on the stock. The consensus estimate for Meritage Homes’ current full-year earnings is $10.52 per share. Wedbush also issued estimates for Meritage Homes’ Q3 2025 earnings at $2.56 EPS, FY2025 earnings at $9.56 EPS, Q1 2026 earnings at $1.84 EPS, Q2 2026 earnings at $2.30 EPS, Q3 2026 earnings at $2.70 EPS and FY2026 earnings at $10.60 EPS.

MTH has been the topic of several other research reports. Raymond James cut shares of Meritage Homes from an “outperform” rating to a “market perform” rating in a research note on Thursday, November 7th. The Goldman Sachs Group lowered their price objective on shares of Meritage Homes from $117.50 to $100.00 and set a “buy” rating on the stock in a research note on Tuesday, January 14th. UBS Group cut their target price 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. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $98.50 price target (down from $110.00) on shares of Meritage Homes in a research report on Friday, December 13th. Finally, Keefe, Bruyette & Woods cut their price objective on Meritage Homes from $97.00 to $90.00 and set a “market perform” rating for the company in a report on Thursday. One analyst has rated the stock with a sell rating, four have issued a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $106.25.

Meritage Homes Trading Down 3.9 %

NYSE:MTH opened at $73.57 on Thursday. Meritage Homes has a 1 year low of $73.05 and a 1 year high of $106.99. The business has a fifty day moving average of $83.81 and a 200-day moving average of $91.70. 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 cap of $5.32 billion, a price-to-earnings ratio of 5.63 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 (EPS) for the quarter, topping analysts’ consensus estimates of $4.55 by $0.17. Meritage Homes had a return on equity of 15.90% and a net margin of 12.29%.

Meritage Homes Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Tuesday, December 17th were given a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 2.04%. The ex-dividend date was Tuesday, December 17th. Meritage Homes’s dividend payout ratio (DPR) is presently 11.47%.

Institutional Investors Weigh In On Meritage Homes

Several hedge funds have recently modified their holdings of the stock. CWM LLC raised its holdings in Meritage Homes by 15.5% during the 3rd quarter. CWM LLC now owns 433 shares of the construction company’s stock worth $89,000 after buying an additional 58 shares during the period. Assetmark Inc. raised its holdings in shares of Meritage Homes by 53.6% during the third quarter. Assetmark Inc. now owns 172 shares of the construction company’s stock valued at $35,000 after acquiring an additional 60 shares during the period. First Trust Direct Indexing L.P. raised its holdings in shares of Meritage Homes by 2.5% during the third quarter. First Trust Direct Indexing L.P. now owns 2,719 shares of the construction company’s stock valued at $558,000 after acquiring an additional 66 shares during the period. V Square Quantitative Management LLC purchased a new stake in shares of Meritage Homes in the 3rd quarter valued at approximately $28,000. Finally, Ballentine Partners LLC boosted its stake in Meritage Homes by 10.4% in the 3rd quarter. Ballentine Partners LLC now owns 1,516 shares of the construction company’s stock worth $311,000 after purchasing an additional 143 shares during the period. 98.44% of the stock is owned by hedge funds and other institutional investors.

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.