MTH - Why Meritage Homes Stock Rallied as Much as 14.7% in Morning Trading Today
Shares of home builder Meritage Homes (NYSE: MTH) were higher by 14% by noon EDT on July 29. They had risen as much as 14.7% in morning trading on Wall Street, so the stock was able to hold on to most of its early gains. The company's after-the-close earnings release on July 28 precipitated the strong and sustained advance.
Meritage Homes had good news to report across the board. It closed on 3,273 homes in the second quarter of 2021 (the highest home-closing level in the company's history), up 18% from the same period last year. The average closing price of the homes was 4% higher as well. And that, in turn, led to a hefty 23% increase in home-closing revenue. Earnings per share (EPS) of $4.36 were an 83% increase from the $2.38 achieved in Q2 2020. These numbers were, understandably, met with a positive response by investors.
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Why Meritage Homes Stock Rallied as Much as 14.7% in Morning Trading Today