Toll Brothers Inc. (NYSE:TOL) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Toll Brothers Inc. (NYSE:TOL - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty research firms that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and fifteen have given a buy rating to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $166.6667.

TOL has been the topic of several recent analyst reports. Truist Financial boosted their target price on shares of Toll Brothers from $165.00 to $170.00 and gave the company a "buy" rating in a research note on Thursday, August 20th. Oppenheimer downgraded shares of Toll Brothers from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 9th. Argus set a $170.00 price target on shares of Toll Brothers in a research report on Tuesday, June 2nd. Piper Sandler cut shares of Toll Brothers from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 9th. Finally, Barclays upped their price objective on shares of Toll Brothers from $115.00 to $122.00 and gave the stock an "underweight" rating in a research note on Tuesday, July 14th.

Toll Brothers News Summary

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Toll Brothers continues to expand in attractive luxury housing markets, announcing new communities near Dallas, in California, Las Vegas, and Harrison, New York. The developments increase its future selling opportunities and reinforce the company’s premium-market positioning. New Dallas-area community
• Positive Sentiment: The Harrison, New York, project is expected to launch this fall with luxury townhomes priced from approximately $1.6 million, while the Cumming, Georgia, model home is now available for purchase. These announcements could support future orders and revenue, although they are not immediate financial catalysts. Harrison luxury townhome community
• Neutral Sentiment: Recent developments in San Bruno, California, Las Vegas, and other markets demonstrate ongoing geographic growth, but the releases provided no pricing, order, margin, or earnings guidance. Their near-term impact on TOL’s valuation is therefore limited. Las Vegas community announcement
• Negative Sentiment: An analysis argues that Toll Brothers’ earnings per share improved without growth in total earnings, implying that share repurchases or a lower share count—not stronger profitability—supported per-share results. This is concerning because quarterly revenue fell about 9.7% year over year and earnings declined from the prior-year period. Toll Brothers earnings-per-share analysis
• Negative Sentiment: Recent insider activity is also a cautionary signal: company insiders made four reported open-market sales over the past six months and no purchases. The stock is trading below its 50-day moving average and close to its 200-day average, indicating continued investor pressure.

Toll Brothers Stock Down 2.1%

Shares of TOL opened at $145.05 on Friday. The stock has a market cap of $13.56 billion, a price-to-earnings ratio of 11.64, a P/E/G ratio of 1.21 and a beta of 1.35. 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 has a 12 month low of $123.14 and a 12 month high of $168.36. The company has a 50-day moving average price of $151.65 and a two-hundred day moving average price of $146.38.

Toll Brothers (NYSE:TOL - Get Free Report) last announced 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 return on equity of 14.21% and a net margin of 11.14%.The business had revenue of $2.66 billion for the quarter, compared to analyst estimates of $2.62 billion. During the same quarter in the previous year, the firm earned $3.73 EPS. Toll Brothers's quarterly revenue was down 9.7% on a year-over-year basis. Equities analysts predict that Toll Brothers will post 12.81 EPS for the current fiscal year.

Toll Brothers Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a dividend of $0.26 per share. The ex-dividend date was Friday, July 10th. This represents a $1.04 dividend on an annualized basis and a yield of 0.7%. Toll Brothers's dividend payout ratio is 8.35%.

Insiders Place Their Bets

In other Toll Brothers news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the business's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $156.58, for a total value of $12,206,507.06. Following the transaction, the chairman owned 321,256 shares of the company's stock, valued at approximately $50,302,264.48. The trade was a 19.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Robert Parahus sold 7,500 shares of the business's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $149.66, for a total value of $1,122,450.00. Following the completion of the transaction, the chief operating officer directly owned 23,457 shares in the company, valued at approximately $3,510,574.62. This represents a 24.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.37% of the company's stock.

Institutional Trading of Toll Brothers

A number of hedge funds and other institutional investors have recently made changes to their positions in TOL. Hilton Head Capital Partners LLC lifted its position in Toll Brothers by 65.5% during the 1st quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company's stock worth $26,000 after buying an additional 74 shares in the last quarter. Wiser Advisor Group LLC acquired a new stake in Toll Brothers in the 3rd quarter valued at about $27,000. Pinnacle Holdings LLC bought a new position in shares of Toll Brothers in the fourth quarter worth about $27,000. Continuum Advisory LLC acquired a new position in shares of Toll Brothers during the second quarter worth approximately $28,000. Finally, Measured Wealth Private Client Group LLC acquired a new position in shares of Toll Brothers during the third quarter worth approximately $29,000. 91.76% of the stock is currently owned by institutional investors and hedge funds.

Toll Brothers Company Profile

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company's core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.

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