Are Meritage (NYSE:MTH) Shares Worth Your Time and Dime Following Recent Credit Suisse Upgrade?


Meritage (NYSE:MTH) Stock Upgrade

The previous rating of a Underperform for Meritage (NYSE:MTH) has been discontinued as Credit Suisse hiked MTH’s current rating to a respectable Neutral.

From a total of 11 analysts covering Meritage (NYSE:MTH) stock, 2 rate it a ”Buy”, 3 a “Sell”, and 7 a ”Hold”. This means that 17% of the ratings are positive. The highest target price is $55 while the lowest target price is $35. The mean of all analyst targets is $41.73 with a 29.37% above today’s ($33.88) stock price. Meritage was the topic of 14 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. JP Morgan maintained shares on November 2 with “Neutral” rating. UBS maintained shares with “Sell” rating and $39 target share price in a report from a September 10. Evercore downgraded MTH stock in a recent report from October 30 to “Hold” rating. Finally, Deutsche Bank maintained the stock with “Buy” rating in a report issued on a September 11.

Approximately 140,795 shares of stock traded hands. Meritage Homes Corp (NYSE:MTH) has declined 23.46% since May 12, 2015 and is downtrending. It has underperformed by 19.79% the S&P500.

The overall sentiment of institutions has decreased to 1.03 in Q2 2015. Its down 0.36, from 1.39 in 2015Q2. The ratio worsened, as 25 institutions have sold all the shares of Meritage Homes Corp that they owned while 50 funds have taken shares off the table. 19 funds have purchased shares for the first time while 58 added to their positions. These institutions now hold 39.22 million shares or 9.23% less than the 43.21 million shares they owned in 2015Q2.

The Fund Element Capital Management Llc currently is holding shares equating to 1.98% of its total portfolio in Meritage Homes Corp representing a total of 149,524 shares. Another fund,Dean Capital Management, is holding a total of 25,465 shares equating to 1.3% of their holdings. Additionally, Sanders Capital Llc has a 3.27 million share stake in Meritage Homes Corp which represents 1.2% of their total portfolio. The Fund, Covalent Partners Llc, based out of Massachusetts, has also built up a stake in the stock, which represents a total of 1.04% of their total portfolio. Finally Echo Street Capital Management Llc, a fund which is based in the state of New York reported a total holdings of 671,499 shares.

Insider activity is a very important aspect to track on any stock. Going back to April 28, 2015, shareholders of Meritage Homes Corp have witnessed 0 insider purchases, and a total of 2 insider sales equating to a net activity of approximately $743,300 . Sarver Robert Gary sold 12,000 shares worth approximately $519,000. Haddock Gerald W sold 5,000 shares worth approximately $224,300. Seay Larry Wayne sold 17,333 shares worth approximately $782,452.

Meritage Homes Corporation operates as a holding company. The company has a market cap of $1.30 billion. The Firm is a designer and builder of single-family detached homes. It has 11.23 P/E ratio. It operates in two divisions: homebuilding and financial services.

According to Zacks Investment Research, “Meritage Homes Corp. is one of the nation’s largest single-family homebuilders.”