Bank of America Issues Pessimistic Forecast for Toll Brothers (NYSE:TOL) Stock Price

Key Points

• Bank of America has lowered its price target for Toll Brothers (NYSE:TOL) from $155.00 to $150.00, while maintaining a "buy" rating, indicating a potential upside of 17.81% from the stock's previous close.
• Despite the downgrade from Bank of America, several other brokerages have set varying target prices for Toll Brothers, with estimates ranging from $133.00 to $160.00, reflecting mixed sentiments in the market.
• Toll Brothers recently reported stronger than expected earnings, posting $3.73 EPS for the quarter and an 8.0% year-over-year revenue increase, although its stock price has faced declines recently.

Toll Brothers (NYSE:TOL - Get Free Report) had its price target cut by research analysts at Bank of America from $155.00 to $150.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the construction company's stock. Bank of America's target price would indicate a potential upside of 17.81% from the stock's previous close.

A number of other brokerages have also recently issued reports on TOL. Royal Bank Of Canada boosted their price objective on Toll Brothers from $133.00 to $145.00 and gave the stock an "outperform" rating in a report on Thursday, August 21st. Raymond James Financial reissued a "strong-buy" rating and issued a $160.00 target price (up previously from $130.00) on shares of Toll Brothers in a research report on Monday, August 25th. Keefe, Bruyette & Woods boosted their target price on shares of Toll Brothers from $143.00 to $145.00 and gave the company a "market perform" rating in a research report on Thursday, August 28th. Seaport Res Ptn raised shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Finally, Evercore ISI reiterated an "in-line" rating and issued a $160.00 price target (down from $169.00) on shares of Toll Brothers in a research note on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $149.43.

Toll Brothers Stock Performance

NYSE TOL traded down $1.16 on Friday, hitting $127.32. 369,132 shares of the stock were exchanged, compared to its average volume of 1,739,435. The business's fifty day moving average is $136.25 and its 200 day moving average is $117.47. Toll Brothers has a 52 week low of $86.67 and a 52 week high of $169.52. The company has a market capitalization of $12.27 billion, a PE ratio of 9.31, a P/E/G ratio of 1.57 and a beta of 1.40. The company has a debt-to-equity ratio of 0.36, a current ratio of 4.38 and a quick ratio of 0.51.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings data on Tuesday, August 19th. The construction company reported $3.73 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.59 by $0.14. Toll Brothers had a return on equity of 17.42% and a net margin of 12.64%.The company had revenue of $2.95 billion during the quarter, compared to analysts' expectations of $2.86 billion. During the same period last year, the firm posted $3.60 earnings per share. The business's revenue was up 8.0% on a year-over-year basis. Research analysts anticipate that Toll Brothers will post 13.83 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Stephen F. East sold 2,500 shares of the stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $115.33, for a total value of $288,325.00. Following the completion of the sale, the director directly owned 12,787 shares in the company, valued at $1,474,724.71. This represents a 16.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Paul E. Shapiro sold 3,812 shares of the stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $147.65, for a total value of $562,841.80. Following the sale, the director owned 118,753 shares of the company's stock, valued at approximately $17,533,880.45. The trade was a 3.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 42,413 shares of company stock valued at $5,746,216 over the last ninety days. 1.54% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Toll Brothers

A number of hedge funds and other institutional investors have recently made changes to their positions in TOL. Farther Finance Advisors LLC lifted its holdings in Toll Brothers by 6.5% during the second quarter. Farther Finance Advisors LLC now owns 1,485 shares of the construction company's stock valued at $169,000 after purchasing an additional 90 shares during the last quarter. Brooklyn Investment Group increased its stake in Toll Brothers by 52.8% during the 1st quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock valued at $29,000 after purchasing an additional 94 shares in the last quarter. Old Port Advisors grew its holdings in shares of Toll Brothers by 4.5% in the second quarter. Old Port Advisors now owns 2,165 shares of the construction company's stock worth $247,000 after acquiring an additional 94 shares during the period. KLP Kapitalforvaltning AS grew its position in Toll Brothers by 0.4% during the first quarter. KLP Kapitalforvaltning AS now owns 24,800 shares of the construction company's stock valued at $2,619,000 after buying an additional 100 shares during the period. Finally, Applied Finance Capital Management LLC grew its holdings in Toll Brothers by 4.0% during the second quarter. Applied Finance Capital Management LLC now owns 2,579 shares of the construction company's stock valued at $294,000 after purchasing an additional 100 shares during the period. 91.76% of the stock is owned by hedge funds and other institutional investors.

About Toll Brothers

Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments.

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