Meritage Homes Corporation (MTH)

Meritage Homes reported its second-quarter 2025 earnings on July 23, 2025, surpassing EPS estimates by $0.05 with $2.04 EPS, but quarterly revenue was down 4.6% year-over-year. The company announced a quarterly dividend of $0.43 per share, paid on September 30, 2025. Insider trading included a director purchasing 2,200 shares and the CEO selling 6,950 shares. Analyst ratings saw adjustments, with Zacks Research upgrading the stock to a "hold", Bank of America decreasing its target price to $80.00 while maintaining a "buy" rating, Zelman & Associates raising its rating to a "strong-buy", and Wedbush lowering its price objective to $90.00 with a "neutral" rating. The stock opened at $70.56 on October 23, 2025, and traded at $71.39 on October 24, 2025. Volatile mortgage rates have impacted housing demand.

Demand for Meritage Homes' products exhibits seasonality, with a higher sales pace in the first half of the year and a slower pace in the second half, with July being one of the slowest months. The company uses a "spec home strategy" to offer move-in ready homes and targeted incentives to meet market conditions. Historically, October has shown a tendency to favor a long bias for MTH stock.

Meritage Homes Corporation, based in Scottsdale, Arizona, is the fifth-largest public homebuilder in the United States based on 2024 homes closed. The company operates in the Industrials sector, focusing on single-family homes for entry-level and first move-up buyers. Its operations are divided into Homebuilding and Financial Services, providing services like title, escrow, mortgage, and insurance. Meritage Homes is known for its style, quality, customer experience, and energy-efficient homebuilding, earning multiple EPA ENERGY STAR® Partner awards.

Meritage Homes Corp. has a significant presence across the Sun Belt and other regions of the United States. Its operations span multiple states, including Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, Alabama, and Mississippi.

Meritage Homes has maintained a positive brand reputation, recognized for its style, quality construction, and customer experience. The company is an industry leader in energy-efficient homes, earning multiple ENERGY STAR® Partner awards. Macroeconomic challenges like volatile mortgage rates have created a challenging market environment.

Institutional ownership is a significant characteristic of Meritage Homes Corporation. Strong institutional ownership suggests that large money managers and hedge funds anticipate positive long-term performance for the company.