Meritage Homes (NYSE:MTH) Hits New 12-Month Low – Should You Sell?

Meritage Homes Co. (NYSE:MTH)’s share price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $68.71 and last traded at $70.10, with a volume of 25621 shares trading hands. The stock had previously closed at $70.33.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on MTH. StockNews.com cut shares of Meritage Homes from a “hold” rating to a “sell” rating in a research report on Monday, March 24th. The Goldman Sachs Group lowered their price target on Meritage Homes from $117.50 to $100.00 and set a “buy” rating for the company in a research report on Tuesday, January 14th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $98.50 price objective (down previously from $110.00) on shares of Meritage Homes in a report on Friday, December 13th. Keefe, Bruyette & Woods dropped their target price on Meritage Homes from $97.00 to $90.00 and set a “market perform” rating for the company in a research report on Thursday, February 6th. Finally, Wedbush reiterated a “neutral” rating and set a $103.00 price target on shares of Meritage Homes in a research note on Tuesday, February 4th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $106.25.

Meritage Homes Stock Performance

The stock has a 50-day moving average price of $74.51 and a 200 day moving average price of $85.74. The company has a quick ratio of 1.75, a current ratio of 1.61 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $5.10 billion, a price-to-earnings ratio of 5.43 and a beta of 1.92.

Meritage Homes (NYSE:MTH) last posted its quarterly earnings results on Wednesday, January 29th. The construction company reported $4.72 EPS for the quarter, topping the consensus estimate of $4.55 by $0.17. Meritage Homes had a net margin of 12.29% and a return on equity of 15.90%. On average, analysts forecast that Meritage Homes Co. will post 9.44 EPS for the current year.

Meritage Homes Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Monday, March 17th were paid a $0.43 dividend. The ex-dividend date was Monday, March 17th. This is a boost from Meritage Homes’s previous quarterly dividend of $0.38. This represents a $1.72 dividend on an annualized basis and a yield of 2.42%. Meritage Homes’s dividend payout ratio (DPR) is currently 13.16%.

Insider Transactions at Meritage Homes

In other news, CAO Alison Sasser sold 676 shares of the business’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $72.03, for a total transaction of $48,692.28. Following the completion of the sale, the chief accounting officer now owns 5,933 shares in the company, valued at approximately $427,353.99. The trade was a 10.23 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Clinton Szubinski sold 595 shares of the stock in a transaction on Wednesday, February 12th. The shares were sold at an average price of $73.29, for a total transaction of $43,607.55. Following the completion of the transaction, the chief operating officer now directly owns 30,547 shares in the company, valued at $2,238,789.63. This trade represents a 1.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,683 shares of company stock valued at $122,547. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Meritage Homes

Several large investors have recently bought and sold shares of MTH. Pinnacle Holdings LLC purchased a new stake in shares of Meritage Homes in the 4th quarter valued at about $31,000. Allworth Financial LP lifted its stake in Meritage Homes by 545.5% in the fourth quarter. Allworth Financial LP now owns 213 shares of the construction company’s stock valued at $33,000 after buying an additional 180 shares during the last quarter. Venturi Wealth Management LLC acquired a new stake in shares of Meritage Homes in the fourth quarter valued at approximately $92,000. Smartleaf Asset Management LLC grew its position in shares of Meritage Homes by 235.1% during the fourth quarter. Smartleaf Asset Management LLC now owns 677 shares of the construction company’s stock worth $104,000 after acquiring an additional 475 shares during the last quarter. Finally, Fourth Dimension Wealth LLC acquired a new position in shares of Meritage Homes in the 4th quarter valued at $130,000. Institutional investors and hedge funds own 98.44% of the company’s stock.

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.