Meritage

MTH

Meritage Homes Corporation is an American real estate development company that constructs single-family detached homes across the United States along with active adult communities and luxury real estate in Arizona. It is headquartered in Scottsdale, Arizona and is a publicly traded company. In 2020, Meritage Homes began developing a section in the Stillwater neighborhood in Conroe, TX. While working on this development, Meritage was fined and had their permits pulled on numerous occasions due to their negligent behaviors and poorly engineered drainage plans. This has led to severe flooding and water contamination in the adjacent subdivision and ponds. When questioned about this, Meritage stated that they had no concern about adjacent developments, and that their only concern was completing the project they had at hand. The City of Conroe and local residents are investigating the situation further.

Meritage has been a target of short sellers for a while. The current short interest of 6.80% is roughly at the average of the last 12 months (5.52%).