StockNews.com Downgrades Meritage Homes (NYSE:MTH) to Sell

Meritage Homes (NYSE:MTH) was downgraded by stock analysts at StockNews.com from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

A number of other analysts have also issued reports on MTH. Raymond James lowered Meritage Homes from an “outperform” rating to a “market perform” rating in a research note on Thursday, November 7th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $98.50 target price (down from $110.00) on shares of Meritage Homes in a research report on Friday, December 13th. UBS Group dropped their price target on shares of Meritage Homes from $126.00 to $118.00 and set a “buy” rating for the company in a research report on Wednesday, January 8th. The Goldman Sachs Group upgraded shares of Meritage Homes from a “neutral” rating to a “buy” rating and lifted their price target for the company from $102.50 to $117.50 in a report on Thursday, October 31st. Finally, Keefe, Bruyette & Woods dropped their price objective on Meritage Homes from $105.00 to $99.00 and set a “market perform” rating for the company in a report on Tuesday, November 5th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $109.56.

Meritage Homes Price Performance

Meritage Homes stock opened at $74.07 on Friday. The firm’s 50-day moving average is $89.18 and its two-hundred day moving average is $92.61. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.75 and a quick ratio of 1.75. The stock has a market capitalization of $5.36 billion, a P/E ratio of 3.35 and a beta of 1.87. Meritage Homes has a 12-month low of $73.05 and a 12-month high of $106.99.

Meritage Homes (NYSE:MTH) last released its earnings results on Tuesday, October 29th. The construction company reported $2.67 EPS for the quarter, topping the consensus estimate of $2.52 by $0.15. Meritage Homes had a net margin of 12.63% and a return on equity of 16.89%. The firm had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.58 billion. During the same period in the previous year, the company earned $2.99 EPS. Meritage Homes’s revenue for the quarter was down 1.5% on a year-over-year basis. Equities analysts predict that Meritage Homes will post 21.27 earnings per share for the current year.

Institutional Investors Weigh In On Meritage Homes

Hedge funds have recently modified their holdings of the stock. V Square Quantitative Management LLC acquired a new stake in shares of Meritage Homes during the third quarter valued at about $28,000. Assetmark Inc. grew its stake in Meritage Homes by 53.6% during the 3rd quarter. Assetmark Inc. now owns 172 shares of the construction company’s stock valued at $35,000 after purchasing an additional 60 shares in the last quarter. Headlands Technologies LLC increased its holdings in Meritage Homes by 1,033.3% during the 2nd quarter. Headlands Technologies LLC now owns 272 shares of the construction company’s stock worth $44,000 after purchasing an additional 248 shares during the last quarter. Point72 Hong Kong Ltd purchased a new stake in Meritage Homes during the 2nd quarter worth approximately $61,000. Finally, CWM LLC raised its position in shares of Meritage Homes by 15.5% in the 3rd quarter. CWM LLC now owns 433 shares of the construction company’s stock valued at $89,000 after purchasing an additional 58 shares in the last quarter. 98.44% of the stock is currently 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.