Are Meritage Homes Corporation (NYSE:MTH) shares too expensive at this price?

As of close of business last night, Meritage Homes Corporation’s stock clocked out at $109.59, up 2.90% from its previous closing price of $106.50. In other words, the price has increased by $+3.09 from its previous closing price. On the day, 583635 shares were traded. MTH stock price reached its highest trading level at $110.51 during the session, while it also had its lowest trading level at $104.87.

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To gain a deeper understanding of MTH’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 4.77 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 10.85. In the meantime, Its Debt-to-Equity ratio is 0.29 whereas as Long-Term Debt/Eq ratio is at 0.29.

Upgrades & Downgrades

On September 19, 2022, KeyBanc Capital Markets Upgraded its rating to Overweight which previously was Sector Weight but kept the price unchanged to $87.

Wells Fargo Downgraded its Equal Weight to Underweight on June 17, 2022, while the target price for the stock was maintained at $65.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Mar 03 when Lord Phillippe sold 5,400 shares for $110.00 per share. The transaction valued at 594,000 led to the insider holds 44,441 shares of the business.

OPPEL RAYMOND sold 5,000 shares of MTH for $551,100 on Mar 03. The Director now owns 10,000 shares after completing the transaction at $110.22 per share. On Feb 22, another insider, HILTON STEVEN J, who serves as the Executive Chairman of the company, sold 23,934 shares for $107.17 each. As a result, the insider received 2,565,118 and left with 395,366 shares of the company.

Valuation Measures:

As of this moment, Meritage’s Price-to-Earnings (P/E) ratio for their current fiscal year is 4.10, and their Forward P/E ratio for the next fiscal year is 7.90. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.65 while its Price-to-Book (P/B) ratio in mrq is 1.01.

Stock Price History:

Over the past 52 weeks, MTH has reached a high of $117.22, while it has fallen to a 52-week low of $62.51. The 50-Day Moving Average of the stock is 106.28, while the 200-Day Moving Average is calculated to be 86.78.

Shares Statistics:

It appears that MTH traded 407.80K shares on average per day over the past three months and 438.59k shares per day over the past ten days. A total of 36.57M shares are outstanding, with a floating share count of 35.88M. Insiders hold about 0.30% of the company’s shares, while institutions hold 99.99% stake in the company. Shares short for MTH as of Jan 30, 2023 were 1.03M with a Short Ratio of 0.91M, compared to 1.1M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.81% and a Short% of Float of 4.11%.

Dividends & Splits

The current Payout Ratio is 0.00% for MTH, which recently paid a dividend on Mar 30, 2023 with an ex-dividend date of Dec 25, 1996. Stock splits for the company last occurred on Jan 09, 2005 when the company split stock in a 2:1 ratio.

Earnings Estimates

As of right now, 10 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $2.54 for the current quarter, with a high estimate of $2.95 and a low estimate of $2.13, while EPS last year was $5.79. The consensus estimate for the next quarter is $2.75, with high estimates of $3.08 and low estimates of $2.19.

Analysts are recommending an EPS of between $14.24 and $9.18 for the fiscal current year, implying an average EPS of $12.48. EPS for the following year is $13.43, with 10 analysts recommending between $17.34 and $8.6.

Revenue Estimates

In the current quarter, 6 analysts expect revenue to total $1.03B. It ranges from a high estimate of $1.04B to a low estimate of $1.01B. As of the current estimate, Meritage Homes Corporation’s year-ago sales were $1.29B, an estimated decrease of -20.00% from the year-ago figure. For the next quarter, 6 analysts are estimating revenue of $1.14B, a decrease of -19.10% over than the figure of -$20.00% in the same quarter last year. There is a high estimate of $1.26B for the next quarter, whereas the lowest estimate is $978.4M.

A total of 6 analysts have provided revenue estimates for MTH’s current fiscal year. The highest revenue estimate was $5.24B, while the lowest revenue estimate was $4.22B, resulting in an average revenue estimate of $4.88B. In the same quarter a year ago, actual revenue was $6.29B, down -22.50% from the average estimate. Based on 6 analysts’ estimates, the company’s revenue will be $5.05B in the next fiscal year. The high estimate is $5.53B and the low estimate is $4.2B. The average revenue growth estimate for next year is up 3.50% from the average revenue estimate for this year.