Meritage Homes Corp (MTH) Shares Gap Down to $68.2 on Jul 7, Analysts Forecast Upside of 33.40%

Meritage Homes Corp (MTH) shares fell 3.44% to $68.2 on Jul 7, down from its previous close of $70.63. Trading volume was 156,834 shares, 18.1% of the average daily volume of 867,318. Analysts forecast an average target price of $90.98 with a high estimate of $107.00 and a low estimate of $70.00, implying an upside of 33.40% from the current price. The estimated GF Value for MTH in one year is $76.39, suggesting a upside of 12.01% from the current price.

Meritage Homes Corp (MTH) shares experienced a significant drop on July 7, falling 3.44% to $68.20, down from its previous close of $70.63. The trading volume for the day was 156,834 shares, representing an 18.1% increase over the average daily volume of 867,318 shares [1].

Analysts have forecasted an average target price of $90.98 for MTH, with a high estimate of $107.00 and a low estimate of $70.00. This implies an average upside of 33.40% from the current price. Additionally, the estimated GF Value for MTH in one year is $76.39, suggesting a potential upside of 12.01% from the current price [2].

Insider buying activity has been a notable indicator for MTH. Director Joseph Keough recently purchased 4,000 shares of MTH on June 12, investing $264,640.00 at a cost per share of $66.16. This purchase occurred despite the stock trading at a low of $69.38 on Monday, indicating a potential undervaluation. Since the purchase, Keough has seen a 5.5% total return, including dividends [1].

MTH's dividend history and attractiveness have also been highlighted. The annualized dividend paid by MTH is $1.72 per share, currently paid in quarterly installments. The company's long-term dividend history shows a consistent growth trajectory, which can be an important factor for dividend investors [1].

Despite the recent drop, MTH's ROCE (Return on Capital Employed) of 12% indicates strong profitability and capital reinvestment. Over the past five years, MTH has shown a significant increase in ROCE, from 6% to 12%, alongside a 99% increase in capital employed. This trend suggests that MTH has the potential to generate higher returns on its investments, making it an attractive opportunity for investors [2].

References:
[1] https://www.nasdaq.com/articles/meritage-homes-corp-named-top-dividend-stock-insider-buying-and-244-yield-mth
[2] https://finance.yahoo.com/news/return-trends-meritage-homes-nyse-101249286.html