Bamco Inc. NY Takes Position in Toll Brothers Inc. $TOL

Key Points

• Bamco Inc. NY acquired 1,009,102 Toll Brothers shares worth approximately $166.25 million, representing about 1.08% of the homebuilder. Institutional investors collectively own 91.76% of the company.
• Toll Brothers exceeded quarterly expectations, reporting $2.97 in EPS versus the $2.93 consensus and $2.66 billion in revenue, although revenue declined 9.7% year over year.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $166.67 versus the stock’s reported $148.32 price. The company also pays a quarterly dividend of $0.26 per share, a 0.7% yield.

Bamco Inc. NY purchased a new position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,009,102 shares of the construction company's stock, valued at approximately $166,250,000. Bamco Inc. NY owned about 1.08% of Toll Brothers at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Toll Brothers in the 2nd quarter worth $1,610,696,000. Price T Rowe Associates Inc. MD increased its stake in shares of Toll Brothers by 2,067.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,303,915 shares of the construction company's stock worth $446,756,000 after acquiring an additional 3,151,509 shares during the period. Norges Bank purchased a new position in Toll Brothers during the fourth quarter worth about $168,312,000. Bank of New York Mellon Corp purchased a new position in Toll Brothers during the second quarter worth about $164,804,000. Finally, Bank of America Corp DE acquired a new stake in Toll Brothers in the second quarter valued at about $125,912,000. 91.76% of the stock is owned by institutional investors and hedge funds.

Toll Brothers Price Performance

TOL stock opened at $148.32 on Thursday. The firm has a 50 day moving average of $151.86 and a 200-day moving average of $146.43. The company has a market cap of $13.86 billion, a price-to-earnings ratio of 11.90, a PEG ratio of 1.24 and a beta of 1.35. The company has a current ratio of 4.53, a quick ratio of 0.55 and a debt-to-equity ratio of 0.32. Toll Brothers Inc. has a 12-month low of $123.14 and a 12-month high of $168.36.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The construction company reported $2.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.93 by $0.04. The firm had revenue of $2.66 billion during the quarter, compared to analysts' expectations of $2.62 billion. Toll Brothers had a return on equity of 14.21% and a net margin of 11.14%.Toll Brothers's revenue was down 9.7% on a year-over-year basis. During the same period in the previous year, the firm posted $3.73 earnings per share. As a group, equities analysts expect that Toll Brothers Inc. will post 12.81 EPS for the current fiscal year.

Toll Brothers Announces Dividend

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

Insider Activity

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

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Evercore reaffirmed an "outperform" rating and issued a $191.00 price objective on shares of Toll Brothers in a report on Thursday, August 20th. Piper Sandler downgraded Toll Brothers from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 9th. Citigroup raised their price target on Toll Brothers from $176.00 to $179.00 and gave the company a "buy" rating in a report on Friday, August 21st. UBS Group raised their price target on Toll Brothers from $187.00 to $195.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Finally, Truist Financial lifted their price target on Toll Brothers from $165.00 to $170.00 and gave the company a "buy" rating in a research note on Thursday, August 20th. Fifteen investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Toll Brothers presently has a consensus rating of "Moderate Buy" and an average price target of $166.67.

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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