Q4 EPS Estimate for Meritage Homes Cut by Analyst

Meritage Homes Corporation (NYSE:MTH) – Investment analysts at Keefe, Bruyette & Woods lowered their Q4 2026 EPS estimates for shares of Meritage Homes in a research note issued on Friday, October 30th. Keefe, Bruyette & Woods analyst J. Rahmani now forecasts that the construction company will earn $1.00 per share for the quarter, down from their prior forecast of $1.64. The consensus estimate for Meritage Homes’ current full-year earnings is $4.86 per share. Keefe, Bruyette & Woods also issued estimates for Meritage Homes’ Q3 2027 earnings at $1.14 EPS, Q4 2027 earnings at $1.25 EPS, FY2027 earnings at $4.59 EPS and FY2028 earnings at $5.58 EPS.

Other equities research analysts also recently issued reports about the company. UBS Group decreased their target price on Meritage Homes from $88.00 to $85.00 and set a “buy” rating on the stock in a research report on Friday, October 30th. Truist Financial cut their price target on Meritage Homes from $72.00 to $65.00 and set a “hold” rating for the company in a report on Friday, October 30th. Wolfe Research downgraded Meritage Homes from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 30th. Wall Street Zen cut Meritage Homes from a “hold” rating to a “sell” rating in a research report on Saturday, October 31st. Finally, Weiss Ratings lowered Meritage Homes from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $72.44.

Meritage Homes Stock Up 9.4%

Shares of MTH opened at $73.40 on Thursday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.97 and a current ratio of 1.72. The company has a 50-day simple moving average of $64.12 and a 200-day simple moving average of $68.90. Meritage Homes has a 52 week low of $56.66 and a 52 week high of $85.38. The firm has a market capitalization of $4.73 billion, a P/E ratio of 16.57, a P/E/G ratio of 5.09 and a beta of 1.31.

Meritage Homes (NYSE:MTH) last posted its quarterly earnings data on Wednesday, October 28th. The construction company reported $1.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.06). Meritage Homes had a return on equity of 6.69% and a net margin of 5.79%. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the firm posted $1.39 EPS. The business’s revenue for the quarter was down 17.5% compared to the same quarter last year.

Meritage Homes Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Tuesday, September 15th. Meritage Homes’s payout ratio is 43.34%.

Institutional Trading of Meritage Homes

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Fulcrum Asset Management LLP raised its position in Meritage Homes by 1,132.6% in the third quarter. Fulcrum Asset Management LLP now owns 4,795 shares of the construction company’s stock worth $306,000 after purchasing an additional 4,406 shares in the last quarter. Ethic Inc. boosted its holdings in Meritage Homes by 101.3% during the third quarter. Ethic Inc. now owns 24,213 shares of the construction company’s stock valued at $1,522,000 after purchasing an additional 12,185 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in Meritage Homes by 32.9% during the third quarter. Pictet Asset Management Holding SA now owns 76,538 shares of the construction company’s stock valued at $4,810,000 after purchasing an additional 18,962 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of Meritage Homes by 88.0% in the 3rd quarter. Parallel Advisors LLC now owns 487 shares of the construction company’s stock valued at $31,000 after purchasing an additional 228 shares during the period. Finally, Abacus Wealth Partners LLC grew its stake in shares of Meritage Homes by 11.3% in the 3rd quarter. Abacus Wealth Partners LLC now owns 10,400 shares of the construction company’s stock valued at $654,000 after purchasing an additional 1,055 shares during the period. Institutional investors own 98.44% of the company’s stock.

Key Headlines Impacting Meritage Homes

Here are the key news stories impacting Meritage Homes this week:

• Neutral Sentiment: Citizens JMP and Keefe, Bruyette & Woods issued forecasts extending into 2028. Although their FY2028 estimates of $5.40 and $5.58 per share, respectively, are above the current-year consensus of $4.86, both firms also lowered earlier projections for several periods. Meritage Homes analyst estimates
• Negative Sentiment: Multiple analysts cut estimates for upcoming quarters and fiscal years. Citizens JMP reduced its FY2027 forecast from $5.50 to $4.25 per share and its Q4 2026 estimate from $1.62 to $0.70. Keefe, Bruyette & Woods lowered its FY2027 estimate from $5.95 to $4.59, while Wolfe Research cut its FY2027 forecast from $5.86 to $4.48. Analyst estimate reductions
• Negative Sentiment: Melius Research made especially steep reductions: its FY2027 EPS forecast fell from $4.69 to $2.94, and its FY2028 forecast from $5.91 to $3.71. The firm maintains a Sell rating and a $59 price target, adding to the bearish signal. Melius Research forecast cuts and rating

About Meritage Homes

Meritage Homes Corporation is a residential construction company that designs and builds single-family homes in the United States. The company primarily serves entry-level and first-time homebuyers, offering homes in a range of floor plans and communities designed around affordability, energy efficiency and modern features.

Meritage Homes sells homes through its own communities and provides related services, including land acquisition and development, home design, construction, sales and customer support.