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Meritage Homes (MTH) has 3 splits in our MTH split history database. The first split for MTH took place on January 02, 1997. This was a 1 for 3 reverse split, meaning for each 3 shares of MTH owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 333.333333333333 share position following the split. MTH's second split took place on April 29, 2002. This was a 2 for 1 split, meaning for each share of MTH owned pre-split, the shareholder now owned 2 shares. For example, a 333.333333333333 share position pre-split, became a 666.666666666667 share position following the split. MTH's third split took place on January 10, 2005. This was a 2 for 1 split, meaning for each share of MTH owned pre-split, the shareholder now owned 2 shares. For example, a 666.666666666667 share position pre-split, became a 1333.33333333333 share position following the split.
When a company such as Meritage Homes splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as Meritage Homes conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the MTH split history from start to finish, an original position size of 1000 shares would have turned into 1333.33333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Meritage Homes shares, starting with a $10,000 purchase of MTH, presented on a split-history-adjusted basis factoring in the complete MTH split history.
Growth of $10,000.00
Without Dividends Reinvested
|Average Annual Total Return:||12.34%|
|About Meritage Homes|
|Meritage Homes is a holding company. Through its subsidiaries, Co. is engaged in designing and building single-family homes. Co. provides homes that are designed with a focus on first-time and first move-up buyers. Co. also operates a title company, Carefree Title Agency, Inc. (Carefree Title). Carefree Title's core business includes title insurance and closing/settlement services Co. provides to its homebuyers. Co. operates an insurance broker, Meritage Homes Insurance Agency (Meritage Insurance). Meritage Insurance works in collaboration with insurance companies to provide homeowners insurance and other various insurance products to its homebuyers in the markets where Co. builds homes. According to our MTH split history records, Meritage Homes has had 3 splits.|
|MTH Split History Table|
|01/02/1997||1 for 3|
|04/29/2002||2 for 1|
|01/10/2005||2 for 1|
|Services Stock Splits|
|MTH is categorized under the Services sector; below are some other companies in the same sector that also have a history of stock splits:
Also explore: MTH shares outstanding history