Meritage homes CEO Phillippe Lord sells over $2.5 million in stock

Published 04/03/2025, 22:36
Meritage homes CEO Phillippe Lord sells over $2.5 million in stock

The transaction comes after the vesting of performance-based restricted stock units, as noted in the filing. This sale is a part of routine financial planning and is not uncommon among executives with substantial equity holdings in their companies. InvestingPro analysis indicates the company appears undervalued based on its Fair Value calculation, with 12 additional exclusive ProTips available for subscribers looking to dive deeper into Meritage (NYSE:MTH) Homes’ financial outlook. InvestingPro analysis indicates the company appears undervalued based on its Fair Value calculation, with 12 additional exclusive ProTips available for subscribers looking to dive deeper into Meritage Homes’ financial outlook.

The shares were sold at prices ranging from $70.66 to $72.39. Following the transaction, Lord retains ownership of 228,270 shares indirectly held through various entities, including a family limited partnership and a limited liability company. Additionally, he holds 107,254 restricted stock units that have not yet vested. The stock is currently trading near its 52-week low of $70.28, with a market capitalization of approximately $5.2 billion.

The transaction comes after the vesting of performance-based restricted stock units, as noted in the filing. This sale is a part of routine financial planning and is not uncommon among executives with substantial equity holdings in their companies.

In other recent news, Meritage Corporation reported its fourth-quarter 2024 financial results, showcasing a strong performance by surpassing earnings expectations. The company posted an earnings per share (EPS) of $4.72, significantly above the projected $2.28, while revenue for the quarter reached $1.6 billion, slightly exceeding the expected $1.57 billion. Despite these positive results, Meritage’s stock experienced a decline during regular trading hours. Additionally, Meritage expanded its operations into new markets, including Huntsville, Alabama, which could potentially influence future growth.

The homebuilding sector, including companies such as LGI Homes (NASDAQ:LGIH), PulteGroup Inc (NYSE:PHM), Lennar (NYSE:LEN), Toll Brothers (NYSE:TOL), DR Horton (NYSE:DHI), and Meritage, faced challenges due to President Trump’s decision to impose a 25% tariff on Canadian lumber imports. This tariff is expected to increase costs for homebuilders, raising concerns about rising expenses and the potential impact on home prices. Consequently, these companies experienced a decline in their stock prices, reflecting investor unease.

As the market continues to assess these developments, investors are closely monitoring the responses of homebuilders and their strategies to mitigate the impact of higher lumber costs. Meanwhile, Meritage has provided guidance for 2025, targeting home closing revenue between $6.6 billion and $6.9 billion. The company remains focused on maintaining its margins and achieving long-term growth, despite the challenging economic environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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