Zacks Research Lowers Earnings Estimates for Meritage Homes

Meritage Homes Corporation (NYSE:MTH) – Zacks Research dropped their Q1 2026 earnings per share (EPS) estimates for Meritage Homes in a note issued to investors on Wednesday, February 11th. Zacks Research analyst Team now forecasts that the construction company will post earnings of $1.15 per share for the quarter, down from their prior forecast of $1.29. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Meritage Homes’ current full-year earnings is $9.44 per share. Zacks Research also issued estimates for Meritage Homes’ Q2 2026 earnings at $1.77 EPS, Q3 2026 earnings at $1.60 EPS, Q4 2026 earnings at $1.67 EPS, FY2026 earnings at $6.19 EPS, Q1 2027 earnings at $1.33 EPS, Q2 2027 earnings at $1.99 EPS and Q4 2027 earnings at $1.97 EPS.

Several other research firms also recently issued reports on MTH. UBS Group set a $95.00 price target on shares of Meritage Homes in a research report on Friday, January 30th. JPMorgan Chase & Co. raised their target price on Meritage Homes from $60.00 to $69.00 and gave the company a “neutral” rating in a report on Tuesday, November 4th. Citigroup started coverage on Meritage Homes in a research report on Wednesday, January 7th. They set an “outperform” rating on the stock. Keefe, Bruyette & Woods dropped their price objective on Meritage Homes from $78.00 to $76.00 and set a “market perform” rating on the stock in a research note on Tuesday, February 3rd. Finally, Wall Street Zen lowered shares of Meritage Homes from a “hold” rating to a “sell” rating in a research note on Sunday, January 11th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $83.63.

Meritage Homes Price Performance

Shares of MTH opened at $76.69 on Thursday. The firm has a market cap of $5.40 billion, a PE ratio of 12.13, a price-to-earnings-growth ratio of 1.37 and a beta of 1.48. Meritage Homes has a 52-week low of $59.27 and a 52-week high of $84.74. The business’s 50 day moving average price is $71.33 and its two-hundred day moving average price is $72.07. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.95 and a current ratio of 2.10.

Meritage Homes (NYSE:MTH) last released its quarterly earnings data on Wednesday, January 28th. The construction company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.55 by $0.12. Meritage Homes had a return on equity of 9.28% and a net margin of 7.73%.The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same quarter in the prior year, the firm posted $4.72 earnings per share. The firm’s revenue was down 11.9% compared to the same quarter last year.

Hedge Funds Weigh In On Meritage Homes

Institutional investors and hedge funds have recently bought and sold shares of the company. Salomon & Ludwin LLC grew its stake in shares of Meritage Homes by 63.9% during the 4th quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company’s stock worth $25,000 after acquiring an additional 145 shares during the period. Larson Financial Group LLC boosted its position in Meritage Homes by 265.5% during the third quarter. Larson Financial Group LLC now owns 402 shares of the construction company’s stock worth $29,000 after purchasing an additional 292 shares during the period. Atlantic Union Bankshares Corp purchased a new position in shares of Meritage Homes in the second quarter worth about $33,000. Brown Lisle Cummings Inc. bought a new stake in shares of Meritage Homes in the fourth quarter valued at approximately $39,000. Finally, EverSource Wealth Advisors LLC raised its position in shares of Meritage Homes by 194.9% in the second quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company’s stock valued at $47,000 after purchasing an additional 462 shares during the period. 98.44% of the stock is owned by institutional investors.

Meritage Homes Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Wednesday, December 17th were issued a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, December 17th. Meritage Homes’s payout ratio is 27.22%.

Trending Headlines about Meritage Homes

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

• Neutral Sentiment: Unrelated press release for a different “MTH” (Mithril Silver and Gold) — Not relevant to Meritage Homes’ fundamentals; investors should ignore ticker confusion. Mithril Provides Exploration Update
• Negative Sentiment: Zacks Research cut multiple quarterly EPS estimates (Q1–Q4 2026 and Q1–Q4 2027) and lowered FY2026 EPS from $6.65 to $6.19, while forecasting lower Q1–Q4 2027 quarterlies as well; the firm also carries a “Strong Sell” rating. Those downgrades signal weaker near‑term profit expectations and create downside pressure versus the consensus full‑year estimate (~$9.44). (Zacks Research notes, Feb. 11)
• Negative Sentiment: Seeking Alpha published a piece titled “Meritage Homes Corporation: Demand Is Still The Problem,” arguing persistent demand weakness in the housing market is weighing on revenue and margins — reinforcing the rationale behind analyst cuts and investor caution. Meritage Homes: Demand Is Still The Problem

About Meritage Homes

Meritage Homes Corporation is a national homebuilder and residential developer headquartered in Scottsdale, Arizona. Founded in 1985 as Winchester Homes and later rebranded to Meritage Homes, the company specializes in designing, constructing and selling single‐family detached and attached homes. With a focus on energy efficiency and sustainable building practices, Meritage Homes markets its properties under the GreenSmart program, which integrates high‐performance features aimed at reducing long‐term energy and water consumption for homebuyers.

The company’s core activities encompass land acquisition, residential community planning, home design, construction management and real estate sales.