Meritage Homes Shares Drop Below 200-Day Moving Average

Meritage Homes Corp (MTH) shares crossed below their 200-day moving average of $73.18, trading as low as $72.62, a 3.7% drop on the day. The 52-week range for MTH is $59.27 to $103.765, with a last trade of $72.82.

Meritage Homes Corp (MTH) shares have fallen below their 200-day moving average, trading at a low of $72.62, representing a 3.7% drop on the day. The 52-week range for MTH is $59.27 to $103.765, with the latest trade at $72.82. This move follows a period of market volatility and recent changes in the company's financial outlook.

The 200-day moving average is a widely used technical indicator that helps investors gauge the overall trend of a stock. The fact that MTH's shares have fallen below this level suggests a potential shift in investor sentiment. However, it is essential to consider other factors, such as the company's financial health and market conditions, to make informed investment decisions.

Meritage Homes Corp, a leading homebuilder in the United States, has seen its stock price fluctuate significantly in recent months. The company's earnings call for the second quarter of 2025 reported earnings per share (EPS) of $2.04, beating the $1.98 forecast, and revenue of $1.61 billion, exceeding the $1.59 billion estimate. However, the stock fell 6.02% after hours, indicating market concerns about the company's future prospects.

The company's guidance for the third quarter of 2025 projects home closing revenue in the range of $1.4-1.56 billion, with a gross margin of approximately 20%. Meritage Homes also expects double-digit community count growth through 2025-2026. Despite these positive projections, the stock's recent performance suggests that investors are cautious about the company's prospects.

In addition to the company's financial performance, external factors such as interest rate cuts and tariffs have also impacted the housing market. The Federal Reserve's latest interest rate cut is unlikely to alter the trajectory of the U.S. housing market, according to Investing.com Meritage Stock Price Today | NYSE: MTH Live - Investing.com^[1]. However, the latest round of Trump-era tariffs, set to take effect on August 1, could raise the cost of building a new home by approximately $6.8k, according to UBS .

Meritage Homes Corp has also announced a dividend and a $500 million share buyback, which may be seen as a positive sign by investors. The company declared a quarterly dividend of $0.43 per share, payable on September 30, 2025, and boosted its buyback by $500 million .

In conclusion, Meritage Homes Corp shares have fallen below their 200-day moving average, indicating a potential shift in investor sentiment. The company's recent financial performance and guidance suggest positive prospects, but market concerns and external factors may be influencing the stock's price. Investors should carefully consider these factors and conduct thorough analysis before making investment decisions.