Meritage Homes Corp (MTH +$5.44 or +5.14% to $111.27) posted a gain today with near average volume. It ended near the session low on the prior session after highlighted in yellow in the mid-day report (read here) with pivot point cited based on its 10/05/20 high plus 10 cents. It pulled back for 2 consecutive volume-driven losses after hitting new 52-week highs with volume-driven gains. Subsequent gains above the pivot point with at least +40% above average volume would be a reassuring confirmation of fresh institutional buying demand (N criteria).
The high-ranked Building - Residential/Commercial firm reported earnings +88% on +20% sales revenues for the Mar '21 quarter versus the year ago period, its 7th consecutive strong quarterly comparison above the +25% minimum guideline (C criteria). Annual earnings (A criteria) history has been strong after a downturn in FY '15. It has a 97 Earnings Per Share Rating.
The number of top-rated funds owning its shares rose from 538 in Jun '20 to 616 in Mar '21, a reassuring sign concerning the I criteria. Its small supply of only 37.5 million shares outstanding (S criteria) can contribute to greater price volatility in the event of institutional buying or selling
