Palouse Capital Management Inc. Raises Position in Meritage Homes Co. (NYSE:MTH)

Palouse Capital Management Inc. grew its holdings in shares of Meritage Homes Co. (NYSE:MTH) by 239.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 2,341 shares of the construction company’s stock after purchasing an additional 1,651 shares during the quarter. Palouse Capital Management Inc.’s holdings in Meritage Homes were worth $166,000 at the end of the most recent quarter.

A number of other large investors also recently made changes to their positions in MTH. Empowered Funds LLC lifted its stake in shares of Meritage Homes by 4.2% during the 4th quarter. Empowered Funds LLC now owns 15,628 shares of the construction company’s stock worth $2,404,000 after purchasing an additional 628 shares during the period. Gladstone Institutional Advisory LLC purchased a new position in shares of Meritage Homes during the 4th quarter worth $372,000. Van ECK Associates Corp lifted its stake in shares of Meritage Homes by 37.5% during the 4th quarter. Van ECK Associates Corp now owns 30,322 shares of the construction company’s stock worth $4,664,000 after purchasing an additional 8,271 shares during the period. Rhumbline Advisers lifted its stake in shares of Meritage Homes by 4.6% during the 4th quarter. Rhumbline Advisers now owns 111,115 shares of the construction company’s stock worth $17,092,000 after purchasing an additional 4,838 shares during the period. Finally, Congress Asset Management Co. lifted its stake in shares of Meritage Homes by 10.0% during the 4th quarter. Congress Asset Management Co. now owns 13,207 shares of the construction company’s stock worth $2,032,000 after purchasing an additional 1,199 shares during the period. Hedge funds and other institutional investors own 98.44% of the company’s stock.

Meritage Homes Trading Down 2.5%

NYSE:MTH opened at $64.31 on Friday. The business’s 50-day moving average is $66.12 and its two-hundred day moving average is $74.59. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.61 and a quick ratio of 1.75. Meritage Homes Co. has a 12 month low of $59.27 and a 12 month high of $106.99. The firm has a market capitalization of $4.62 billion, a PE ratio of 4.92 and a beta of 1.37.

Meritage Homes (NYSE:MTH) last released its quarterly earnings data on Wednesday, April 23rd. The construction company reported $1.69 EPS for the quarter, missing the consensus estimate of $1.71 by ($0.02). Meritage Homes had a net margin of 12.29% and a return on equity of 15.90%. The company had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.34 billion. During the same period last year, the business earned $5.06 earnings per share. The company’s revenue for the quarter was down 8.5% compared to the same quarter last year. Research analysts predict that Meritage Homes Co. will post 9.44 earnings per share for the current fiscal year.

Meritage Homes Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Stockholders of record on Monday, June 16th will be paid a dividend of $0.43 per share. The ex-dividend date is Monday, June 16th. This represents a $1.72 annualized dividend and a dividend yield of 2.67%. Meritage Homes’s dividend payout ratio is presently 14.06%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on MTH. Wall Street Zen lowered Meritage Homes from a “hold” rating to a “sell” rating in a research note on Monday, March 24th. Seaport Res Ptn raised Meritage Homes from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 6th. Keefe, Bruyette & Woods cut their target price on Meritage Homes from $90.00 to $77.00 and set a “market perform” rating on the stock in a research report on Monday, April 28th. Bank of America started coverage on Meritage Homes in a research report on Monday, May 5th. They issued a “buy” rating and a $82.00 target price on the stock. Finally, UBS Group set a $107.00 target price on Meritage Homes in a research report on Friday, April 25th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $97.72.

Insider Activity

In other Meritage Homes news, Director Joseph Keough bought 4,000 shares of the stock in a transaction dated Thursday, June 12th. The stock was bought at an average cost of $66.16 per share, for a total transaction of $264,640.00. Following the completion of the purchase, the director now directly owns 41,700 shares of the company’s stock, valued at approximately $2,758,872. The trade was a 10.61% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 2.20% of the company’s stock.

About Meritage Homes

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.