Toll Brothers (NYSE:TOL) Given New $170.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised Toll Brothers’ price target to $170 from $159 while maintaining an “overweight” rating, implying 13.71% potential upside.
• Analyst sentiment remains favorable: Toll Brothers has an average “Moderate Buy” rating and a consensus price target of $167.40, though targets range from $118 to $195.
• The company recently beat quarterly earnings and revenue estimates, reporting $2.97 in EPS and $2.66 billion in revenue, but revenue fell 9.7% year over year and EPS declined from $3.73 in the prior-year quarter.

Toll Brothers (NYSE:TOL - Get Free Report) had its target price raised by research analysts at Morgan Stanley from $159.00 to $170.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the construction company's stock. Morgan Stanley's price target would indicate a potential upside of 13.71% from the company's current price.

Other equities analysts have also recently issued research reports about the company. UBS Group boosted their price target on Toll Brothers from $187.00 to $195.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Melius Research initiated coverage on Toll Brothers in a research note on Tuesday, October 6th. They issued a "buy" rating and a $179.00 target price on the stock. Evercore set a $184.00 target price on Toll Brothers in a report on Friday, September 25th. Barclays dropped their price objective on shares of Toll Brothers from $122.00 to $118.00 and set an "underweight" rating on the stock in a research note on Tuesday, October 6th. Finally, Keefe, Bruyette & Woods upped their price objective on shares of Toll Brothers from $161.00 to $170.00 and gave the stock an "outperform" rating in a research report on Friday, August 28th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Toll Brothers presently has an average rating of "Moderate Buy" and a consensus price target of $167.40.

Toll Brothers Stock Performance

Shares of TOL traded down $3.85 during mid-day trading on Tuesday, reaching $149.50. 255,423 shares of the company's stock were exchanged, compared to its average volume of 1,123,034. The company has a debt-to-equity ratio of 0.32, a current ratio of 4.53 and a quick ratio of 0.55. The stock has a market capitalization of $13.78 billion, a PE ratio of 11.98, a price-to-earnings-growth ratio of 1.13 and a beta of 1.31. The business's fifty day simple moving average is $138.02 and its 200-day simple moving average is $144.20. Toll Brothers has a 52-week low of $123.14 and a 52-week high of $168.36.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings results on Tuesday, August 18th. The construction company reported $2.97 EPS for the quarter, beating the consensus estimate of $2.93 by $0.04. The firm had revenue of $2.66 billion during the quarter, compared to the consensus estimate of $2.62 billion. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. Toll Brothers's revenue for the quarter was down 9.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.73 EPS. On average, equities research analysts expect that Toll Brothers will post 12.80 earnings per share for the current year.

Insider Transactions at Toll Brothers

In other Toll Brothers news, Director Stephen East sold 800 shares of the firm's stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $135.99, for a total value of $108,792.00. Following the completion of the sale, the director owned 12,642 shares of the company's stock, valued at approximately $1,719,185.58. This trade represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.37% of the company's stock.

Institutional Trading of Toll Brothers

A number of institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of Toll Brothers during the 2nd quarter worth $1,610,696,000. State Street Corp lifted its position in Toll Brothers by 4.4% during the second quarter. State Street Corp now owns 3,505,828 shares of the construction company's stock worth $577,585,000 after buying an additional 146,163 shares during the period. Dimensional Fund Advisors LP boosted its stake in Toll Brothers by 3.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,990,447 shares of the construction company's stock worth $408,062,000 after buying an additional 100,718 shares during the last quarter. Jennison Associates LLC grew its holdings in Toll Brothers by 30.1% in the 1st quarter. Jennison Associates LLC now owns 1,418,543 shares of the construction company's stock valued at $193,589,000 after buying an additional 327,953 shares during the period. Finally, Bamco Inc. NY purchased a new stake in Toll Brothers in the 2nd quarter valued at about $166,250,000. Hedge funds and other institutional investors own 91.76% of the company's stock.

About Toll Brothers

Toll Brothers, Inc is a luxury homebuilding company that designs, builds, markets and sells residential properties in the United States. Its portfolio includes single-family detached homes, townhomes, condominiums and luxury residences, along with active-adult communities and urban high-rise developments in select markets.

The company also provides related services through businesses involved in mortgage lending, title insurance and settlement services. Toll Brothers serves a range of buyers, including first-time, move-up, luxury and active-adult home purchasers, and offers customization options through its design studios and other customer-service operations.

Founded in 1967 by Robert I.

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