Is Meritage Homes Corporation (MTH) Dependable Investment For Investors?

On Tuesday, shares of Meritage Homes Corporation (NYSE:MTH) marked $76.45 per share versus a previous $75.28 closing price. With having a 1.55% gain, an insight into the fundamental values of Meritage Homes Corporation, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. MTH showed a rise of 25.10% within its YTD performance, with highs and lows between $25.24 – $79.26 during the period of 52 weeks, compared to the simple moving average of 21.32% in the period of the last 200 days.

JP Morgan equity researchers changed the status of Meritage Homes Corporation (NYSE: MTH) shares from “Neutral” to a “Overweight” rating in the report published on June 11th, 2020. Other analysts, including Evercore ISI, also published their reports on MTH shares. Evercore ISI repeated the rating from the previous report, marking MTH under “In-line” rating, in the report published on June 5th, 2020. Additionally, MTH shares got another “Outperform” rating from Credit Suisse, setting a target price of $81 on the company’s shares, according to the report published in May 28th, 2020. On September 11th, 2019, JP Morgan Upgrade an Neutral rating and increased its price target from $54.50 to $67.50. On the other hand, Evercore ISI Downgrade the “In-line” rating for MTH shares, as published in the report on August 9th, 2019. Citigroup seems to be going bullish on the price of MTH shares, based on the price prediction for MTH, indicating that the shares will jump from $55 to $63, giving the shares “Buy” rating based on their report from July 25th, 2019. Another “Underweight” rating came from JP Morgan, providing a prediction for $63 price target according to the report published in March 7th, 2019.

Meritage Homes Corporation (MTH) Analysis

The present dividend yield for MTH owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Meritage Homes Corporation, the company needs to provide a healthy cash flow, currently at the value of 8.72. In addition, the growth of sales from quarter to quarter is recording 27.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Meritage Homes Corporation (MTH) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 15.50% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while MTH is currently recording an average of 529.03K in volumes. The volatility of the stock on monthly basis is set at 5.59%, while the weekly volatility levels are marked at 3.90%with -0.98% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $69.00, indicating growth from the present price of $76.45, which can represent yet another valuable research and analysis points that can help you decide whether to invest in MTH or pass.

What to Look for When Analyzing Meritage Homes Corporation Shares?

Meritage Homes Corporation (MTH) is based in the USA and it represents one of the well-known company operating with Consumer Cyclical sector. If you wish to compare MTH shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 10.09 for Meritage Homes Corporation, while the value 13.74 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 7.58 is supported by the yearly EPS growth of 16.40%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 1.50%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in MTH Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in MTH in the recent period. That is how The Vanguard Group, Inc. now has an increase position in MTH by 4.63% in the first quarter, owning 4.37 million shares of MTH stocks, with the value of $303.93 million after the purchase of an additional 193,580 shares during the last quarter. In the meanwhile, Dimensional Fund Advisors LP also increased their stake in MTH shares changed 0.00% in the first quarter, which means that the company now owns 3.22 million shares of company, all valued at $224.05 million after the acquisition of additional 0 shares during the last quarter.

EARNEST Partners LLC acquired a new position in Meritage Homes Corporation during the first quarter, with the value of $100.09 million, and SSgA Funds Management, Inc. increased their stake in the company’s shares by 4.49% in the first quarter, now owning 51,896 shares valued at $83.98 million after the acquisition of the additional 1.21 million shares during the last quarter. In the end, Macquarie Investment Management B increased their position by 177.27% during the first quarter, now owning 1.13 million MTH shares, now holding the value of $78.27 million in MTH with the purchase of the additional 89,935 shares during the period of the last quarter.