Meritage Homes (NYSE:MTH) Reaches New 52-Week Low – Should You Sell?

Shares of Meritage Homes Co. (NYSE:MTH) hit a new 52-week low on Thursday . The stock traded as low as $69.14 and last traded at $69.01, with a volume of 483299 shares changing hands. The stock had previously closed at $72.16.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. The Goldman Sachs Group decreased their price target on Meritage Homes from $117.50 to $100.00 and set a “buy” rating for the company in a report on Tuesday, January 14th. Seaport Res Ptn raised shares of Meritage Homes from a “strong sell” rating to a “hold” rating in a report on Thursday, March 6th. Wedbush reissued a “neutral” rating and set a $103.00 target price on shares of Meritage Homes in a research note on Tuesday, February 4th. StockNews.com upgraded Meritage Homes from a “sell” rating to a “hold” rating in a research note on Tuesday, March 4th. Finally, UBS Group lowered their price target on Meritage Homes from $126.00 to $118.00 and set a “buy” rating on the stock in a research report on Wednesday, January 8th. Six analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $106.25.

Meritage Homes Price Performance

The stock has a 50 day moving average price of $77.76 and a 200-day moving average price of $88.38. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.61 and a quick ratio of 1.75. The stock has a market capitalization of $4.97 billion, a price-to-earnings ratio of 5.29 and a beta of 1.92.

Meritage Homes (NYSE:MTH) last announced its earnings results on Wednesday, January 29th. The construction company reported $4.72 earnings per share (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 earnings per share for the current year.

Meritage Homes Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Monday, March 17th will be paid a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a yield of 2.49%. The ex-dividend date is Monday, March 17th. This is a boost from Meritage Homes’s previous quarterly dividend of $0.38. Meritage Homes’s dividend payout ratio is currently 13.16%.

Insider Buying and Selling at Meritage Homes

In related news, Chairman Steven J. Hilton purchased 11,000 shares of the business’s stock in a transaction that occurred on Monday, February 10th. The stock was purchased at an average price of $74.51 per share, with a total value of $819,610.00. Following the completion of the acquisition, the chairman now owns 811,192 shares in the company, valued at $60,441,915.92. This trade represents a 1.37 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Clinton Szubinski sold 595 shares of the business’s stock in a transaction on Wednesday, February 12th. The stock was sold at an average price of $73.29, for a total value of $43,607.55. Following 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 position. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,683 shares of company stock worth $122,547. Insiders own 2.00% of the company’s stock.

Institutional Trading of Meritage Homes

Hedge funds have recently made changes to their positions in the company. Assetmark Inc. increased its stake in Meritage Homes by 53.6% during the 3rd quarter. Assetmark Inc. now owns 172 shares of the construction company’s stock worth $35,000 after buying an additional 60 shares during the period. KBC Group NV grew its stake in shares of Meritage Homes by 18.7% in the third quarter. KBC Group NV now owns 986 shares of the construction company’s stock worth $202,000 after acquiring an additional 155 shares in the last quarter. M&T Bank Corp increased its position in shares of Meritage Homes by 8.1% during the fourth quarter. M&T Bank Corp now owns 2,293 shares of the construction company’s stock worth $353,000 after acquiring an additional 172 shares during the period. Allworth Financial LP raised its stake in shares of 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 acquiring an additional 180 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in Meritage Homes by 2.2% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,409 shares of the construction company’s stock valued at $1,724,000 after purchasing an additional 185 shares during the period. Hedge funds and other institutional investors 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.