Toll Brothers (NYSE:TOL) CEO Sells $3,456,500.00 in Stock

Key Points

• CEO Douglas Jr. Yearley sold 25,000 shares of Toll Brothers stock for approximately $3.46 million, representing an 8.04% decrease in his ownership.
• The company's latest earnings report showed an EPS of $3.73, exceeding analyst expectations, with revenue of $2.95 billion, up 8.0% year-over-year.
• Toll Brothers declared a quarterly dividend of $0.25 per share, giving an annualized yield of 0.7%, with a payout ratio of 7.35%.

Toll Brothers Inc. (NYSE:TOL - Get Free Report) CEO Douglas C. Jr. Yearley sold 25,000 shares of the firm's stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $138.26, for a total value of $3,456,500.00. Following the sale, the chief executive officer directly owned 286,117 shares in the company, valued at $39,558,536.42. This trade represents a 8.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Toll Brothers Stock Performance

Shares of NYSE TOL traded up $1.83 during trading hours on Friday, reaching $147.24. The stock had a trading volume of 2,739,985 shares, compared to its average volume of 1,683,980. The company has a current ratio of 4.38, a quick ratio of 0.51 and a debt-to-equity ratio of 0.36. Toll Brothers Inc. has a fifty-two week low of $86.67 and a fifty-two week high of $169.52. The firm has a 50-day moving average of $126.77 and a 200-day moving average of $112.47. The firm has a market cap of $14.19 billion, a price-to-earnings ratio of 10.82, a PEG ratio of 0.96 and a beta of 1.33.

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

Toll Brothers Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, July 11th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, July 11th. Toll Brothers's dividend payout ratio is 7.35%.

Institutional Investors Weigh In On Toll Brothers

A number of institutional investors and hedge funds have recently modified their holdings of TOL. Greenhaven Associates Inc. boosted its stake in Toll Brothers by 0.7% in the 2nd quarter. Greenhaven Associates Inc. now owns 5,601,916 shares of the construction company's stock worth $639,347,000 after purchasing an additional 39,334 shares during the period. AQR Capital Management LLC lifted its stake in shares of Toll Brothers by 83.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,607,993 shares of the construction company's stock valued at $297,650,000 after purchasing an additional 1,183,304 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Toll Brothers by 21.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,159,289 shares of the construction company's stock valued at $227,988,000 after acquiring an additional 375,372 shares during the last quarter. Massachusetts Financial Services Co. MA raised its position in shares of Toll Brothers by 4.0% in the second quarter. Massachusetts Financial Services Co. MA now owns 2,011,618 shares of the construction company's stock valued at $229,586,000 after purchasing an additional 78,035 shares during the period. Finally, Norges Bank bought a new stake in Toll Brothers during the second quarter valued at about $154,782,000. Institutional investors and hedge funds own 91.76% of the company's stock.

Analyst Ratings Changes

Several brokerages have commented on TOL. Barclays restated an "underweight" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Wall Street Zen upgraded Toll Brothers from a "sell" rating to a "hold" rating in a research note on Wednesday, May 14th. Citigroup lifted their price objective on Toll Brothers from $134.00 to $138.00 and gave the company a "neutral" rating in a research note on Monday, August 25th. Seaport Res Ptn upgraded Toll Brothers from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 23rd. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Toll Brothers from $143.00 to $145.00 and gave the stock a "market perform" rating in a report on Thursday, August 28th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $149.07.

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.