What’s happening at Meritage Homes Corporation (NYSE:MTH)? What made the stock one of the top performing stock today? The company is indeed among the top gainers of the stock market, skyrocketing 5.63% (or 3.91 points) to $73.36 from its previous close of $69.45. So is it the right moment to buy?
The shares had an increased trading volume of 1,935,169 contracts this session compared to the average daily volume of last 10 days of 688,037 contracts and they had an increased trading volume compared to the average daily volume of last 3 months of 535,001 contracts.
The indicator of a company’s profitability, the earnings per share ratio is 5.68. This value shows how much money a company makes for each share of its stock. A higher EPS indicates more value because investors will pay more for a company with higher profits. This is positive and tells you exactly how much money the company earned per share of its 38.3M outstanding stocks.
The closing market price for this trading session was 78.97% over 52 weeks minimum price of $40.99 and 4.52% under 52 weeks maximum price of $76.83. Also the price is 10.49% greater than 200 day average of $66.40 and 13.55% greater than 50 day average of $64.61.
At post-market close the stock price was $73.30, thus decreasing -0.08% (or -0.06 points) with respect to regular market close.
Looking at the trading signals for Meritage Homes Corporation over last 6 months of daily time series of prices, the two-week relative strength index (RSI), a momentum indicator that measures the size of recent changes of price to evaluate overbought or oversold conditions, stands at 73.86. According to standard usage, it’s value greater than 70 indicates that MTH is becoming overbought or overvalued and may be preparing for a trend reversal or corrective pullback in price. The stochastic oscillator reading, another momentum indicator of overbought and oversold conditions, stands at 77.51. According to standard usage, it’s value between 20 and 80 suggests that shares are stable in terms of price movement. But let’s keep in mind that even stochastic readings very close to thresholds are not indicative of imminent reversal. In fact very strong trends can maintain overbought or oversold conditions for an extended period, but changes in the stochastic oscillator might suggest future trend shifts.
Another important signal comes from the Moving Average Convergence Divergence (MACD), a trend-following momentum indicator. It helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening. Traders keep constatly an eye on the move of the MACD above or below the zero line due to the fact that the reading is an indicator of the position of the 12-period Exponential Moving Average (EMA) relative to the 26-period EMA. It currently stands at 1.70. The MACD is above the zero line, which means that the short-term average value of MTH is above that of the long-term average, thus implying an upward momentum. Besides, its signal, given by nine-day EMA of the MACD, stands at 0.87. According to standard usage, this is a bullish signal, which suggests that the price of MTH asset is likely to experience upward momentum.
Latest news that might have contributed to the great perfomance of MTH today are:
- Shareholders vote to approve Taylor Morrison's acquisition of William Lyon Homes, published on Fri, 31 Jan 2020 05:20:52 +0000
- Scottsdale homebuilder plans to build in 300 communities nationwide by 2021, published on Fri, 31 Jan 2020 05:12:18 +0000
- Edited Transcript of MTH earnings conference call or presentation 30-Jan-20 2:30pm GMT, published on Thu, 30 Jan 2020 22:46:41 +0000