Toll Brothers (NYSE:TOL) Now Covered by Melius Research

Key Points

• Melius Research initiated coverage of Toll Brothers with a “buy” rating and a $179 price target, implying approximately 32% upside from the reported $135.50 share price.
• Analyst sentiment is broadly positive: 15 analysts rate the stock a Buy, four a Hold and one a Sell, resulting in a consensus “Moderate Buy” rating and a $167.19 average target price.
• Toll Brothers recently exceeded quarterly earnings and revenue expectations, but revenue declined 9.7% year over year and EPS fell from the prior-year period, highlighting ongoing business pressures.

Research analysts at Melius Research began coverage on shares of Toll Brothers (NYSE:TOL - Get Free Report) in a research note issued to investors on Tuesday, Briefing.com reports. The firm set a "buy" rating and a $179.00 price target on the construction company's stock. Melius Research's target price suggests a potential upside of 32.11% from the stock's current price.

Several other brokerages have also weighed in on TOL. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $158.00 target price on shares of Toll Brothers in a research report on Thursday, June 11th. Barclays restated an "underweight" rating on shares of Toll Brothers in a report on Tuesday. Benchmark began coverage on shares of Toll Brothers in a research report on Tuesday, June 9th. They issued a "buy" rating for the company. Weiss Ratings raised shares of Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, September 29th. Finally, UBS Group raised their target price on Toll Brothers from $187.00 to $195.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Fifteen equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Toll Brothers has a consensus rating of "Moderate Buy" and a consensus target price of $167.19.

Toll Brothers Stock Down 0.8%

TOL stock opened at $135.50 on Tuesday. The company has a 50 day moving average of $142.71 and a two-hundred day moving average of $143.14. The company has a market cap of $12.49 billion, a price-to-earnings ratio of 10.87, a PEG ratio of 1.10 and a beta of 1.31. Toll Brothers has a 12-month low of $123.14 and a 12-month high of $168.36. The company has a quick ratio of 0.55, a current ratio of 4.53 and a debt-to-equity ratio of 0.32.

Toll Brothers (NYSE:TOL - Get Free Report) last posted 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. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. The business had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.62 billion. During the same period in the previous year, the company posted $3.73 EPS. Toll Brothers's revenue was down 9.7% on a year-over-year basis. On average, equities analysts anticipate that Toll Brothers will post 12.8 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Toll Brothers news, Director Stephen East sold 800 shares of Toll Brothers stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $135.99, for a total transaction of $108,792.00. Following the sale, the director owned 12,642 shares in the company, valued at $1,719,185.58. The trade was a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.37% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Toll Brothers

Hedge funds and other institutional investors have recently made changes to their positions in the business. Mariner Investment Group LLC acquired a new stake in Toll Brothers in the 2nd quarter valued at about $1,648,000. Ceredex Value Advisors LLC acquired a new stake in shares of Toll Brothers in the second quarter valued at approximately $37,012,000. Meeder Advisory Services Inc. bought a new position in Toll Brothers in the 2nd quarter worth approximately $862,000. Amundi lifted its holdings in Toll Brothers by 138.4% during the 2nd quarter. Amundi now owns 174,655 shares of the construction company's stock worth $28,774,000 after buying an additional 101,405 shares in the last quarter. Finally, iA Global Asset Management Inc. acquired a new position in Toll Brothers during the 2nd quarter worth $44,696,000. 91.76% of the stock is owned by institutional investors.

Toll Brothers Company Profile

Toll Brothers, Inc is a U.S. luxury homebuilder that designs, constructs, markets and sells single-family homes, townhomes and condominiums. The company serves move-up, luxury, active-adult and urban buyers, offering homes in a range of architectural styles and price points.

Founded in 1967 by brothers Robert I. Toll and Bruce E. Toll, the company develops residential communities on land it acquires and prepares for construction. Its operations also include related services such as mortgage financing, title and settlement services, and property development through its Toll Brothers Apartment Living and Toll Brothers City Living businesses.

Toll Brothers operates across numerous metropolitan and suburban markets in the United States, with a presence in regions including the Northeast, Mid-Atlantic, Southeast, Texas, the Midwest, Arizona and the West Coast.

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