The outlook and analysis of Meritage Homes Corporation (MTH)’s stock

Meritage Homes Corporation [MTH] stock prices are up 6.45% to $116.59 at the moment. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The MTH shares have gain 10.18% over the last week, with a monthly amount glided 24.96%, and seem to be holding up well over a long-time horizon.

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On 1, February 2023, Meritage Homes closes out 2022 with record fourth quarter results including a 29% increase in home closings, a 32% increase in home closing revenue and $7.09 of diluted EPS. In a post published today on Yahoo Finance, Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2022.

From an analyst’s perspective:

Meritage Homes Corporation [NYSE: MTH] stock has seen the most recent analyst activity on September 19, 2022, when KeyBanc Capital Markets upgraded its rating to a Overweight but kept the price target unchanged to $87 for it. Previously, Wells Fargo downgraded its rating to Underweight on June 17, 2022, and kept the price target unchanged to $65. On May 13, 2022, downgrade downgraded it’s rating to Peer Perform. Credit Suisse started tracking the stock assigning a Outperform rating and suggested a price target of $103 on April 05, 2022. JP Morgan downgraded its rating to a Neutral and reduced its price target to $111 on March 10, 2022. KeyBanc Capital Markets downgraded its rating to Sector Weight for this stock on January 31, 2022. In a note dated January 18, 2022, Wedbush initiated an Outperform rating and iterated a target price of $157 on this stock.

The stock price of Meritage Homes Corporation [MTH] has been fluctuating between $62.51 and $110.51 over the past year. Currently, Wall Street analysts expect the stock to reach $115.25 within the next 12 months. Meritage Homes Corporation [NYSE: MTH] shares were valued at $116.59 at the most recent close of the market. An investor can expect a potential drop of -1.15% based on the average MTH price forecast.

Analyzing the MTH fundamentals

The most recent quarter, Meritage Homes Corporation [NYSE:MTH] reported sales of 1.58 billion, representing a surge of 25.20%. Gross Margin for this corporation currently stands at +27.80% with Operating Margin at +18.72%, Pretax Margin comes in at +18.57%, and Net Margin reading is +14.34%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 110.83 points at the first support level, and at 105.08 for the second support level. However, for the 1st resistance point, the stock is sitting at 119.78, and for the 2nd resistance point, it is at 122.98.

Meritage Homes Corporation [MTH] reported earnings per share of $7.1 for its fiscal quarter that ended on 9/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $6.45/share, meaning a difference of $0.65 and a surprise factor of 10.10%. By comparison, the stated earnings for the previous quarter ended on 6/29/2022 were $6.77 per share as compared to estimates of $5.87 per share, a difference of $0.9 representing a surprise of 15.30%.

Ratios To Look Out For

As well, the Quick Ratio is 1.48, while the Cash Ratio is 1.36. Considering the valuation of this stock, the price to sales ratio is 0.91, the price to book ratio is 1.50 and the P/E (TTM) ratio is 4.50.

Transactions by insiders

Insider trading has also been a hot topic recently, with 0 insiders purchasing 0 shares and 2 selling 12,357 shares in the past 3 months. Recent insider trading involved HADDOCK GERALD W, Director, that happened on Aug 31 when 2000.0 shares were sold. SVP – Chief Accounting Officer, Sasser Alison completed a deal on Aug 15 to sell 1000.0 shares. Meanwhile, Chief Executive Officer Lord Phillippe sold 1111.0 shares on Mar 08.