Basswood Capital Management L.L.C. Purchases Shares of 284,288 Toll Brothers Inc. $TOL

Key Points

• Basswood Capital Management acquired 284,288 Toll Brothers shares worth approximately $46.8 million, making the homebuilder 1.9% of its portfolio and its 13th-largest holding. Institutional investors collectively own 91.76% of TOL.
• Toll Brothers reported quarterly EPS of $2.97, slightly exceeding estimates, while revenue reached $2.66 billion but declined 9.7% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $166.67.
• The company pays a quarterly dividend of $0.26 per share, or $1.04 annually, representing a 0.7% yield; meanwhile, Chairman Douglas Yearley and COO Robert Parahus recently sold shares.

Basswood Capital Management L.L.C. purchased a new position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 284,288 shares of the construction company's stock, valued at approximately $46,836,000. Toll Brothers comprises about 1.9% of Basswood Capital Management L.L.C.'s portfolio, making the stock its 13th biggest position. Basswood Capital Management L.L.C. owned about 0.30% of Toll Brothers at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of TOL. Thrivent Financial for Lutherans grew its stake in Toll Brothers by 52.4% during the fourth quarter. Thrivent Financial for Lutherans now owns 45,149 shares of the construction company's stock worth $6,105,000 after buying an additional 15,526 shares during the period. Ceredex Value Advisors LLC acquired a new stake in shares of Toll Brothers in the second quarter worth $37,012,000. Meeder Advisory Services Inc. purchased a new position in shares of Toll Brothers in the 2nd quarter valued at $862,000. Mariner Investment Group LLC purchased a new position in shares of Toll Brothers in the 2nd quarter valued at $1,648,000. Finally, Summit Place Financial Advisors LLC raised its stake in shares of Toll Brothers by 89.1% in the 4th quarter. Summit Place Financial Advisors LLC now owns 12,890 shares of the construction company's stock valued at $1,743,000 after acquiring an additional 6,075 shares during the period. 91.76% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on TOL. Piper Sandler cut shares of Toll Brothers from an "overweight" rating to a "neutral" rating in a research report on Tuesday, June 9th. Argus set a $170.00 price objective on Toll Brothers in a research report on Tuesday, June 2nd. Royal Bank Of Canada restated an "outperform" rating and set a $158.00 price objective on shares of Toll Brothers in a research note on Thursday, June 11th. BTIG Research began coverage on Toll Brothers in a research report on Tuesday, June 9th. They issued a "buy" rating for the company. Finally, Evercore reiterated an "outperform" rating and issued a $191.00 target price on shares of Toll Brothers in a research note on Thursday, August 20th. Fifteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Toll Brothers has an average rating of "Moderate Buy" and an average price target of $166.67.

Toll Brothers Price Performance

TOL opened at $148.32 on Thursday. The company has a fifty day simple moving average of $151.86 and a 200 day simple moving average of $146.43. The firm 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. Toll Brothers Inc. has a twelve month low of $123.14 and a twelve month high of $168.36. 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 (NYSE:TOL - Get Free Report) last released its quarterly earnings results 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. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. The firm had revenue of $2.66 billion for the quarter, compared to the consensus estimate of $2.62 billion. During the same quarter in the previous year, the firm posted $3.73 EPS. The firm's quarterly revenue was down 9.7% on a year-over-year basis. Equities research analysts expect that Toll Brothers Inc. will post 12.81 EPS for the current fiscal year.

Toll Brothers Announces Dividend

The firm also recently announced 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. The ex-dividend date was Friday, July 10th. This represents a $1.04 annualized dividend and a dividend yield of 0.7%. Toll Brothers's dividend payout ratio (DPR) is currently 8.35%.

Insider Transactions at Toll Brothers

In related news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the stock in a transaction dated 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 completion of the transaction, the chairman owned 321,256 shares of the company's stock, valued at approximately $50,302,264.48. This represents a 19.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Robert Parahus sold 7,500 shares of the firm's stock in a transaction that occurred on 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 owned 23,457 shares of the company's stock, valued at approximately $3,510,574.62. This trade represents a 24.23% decrease in their position. The SEC filing for this sale provides additional information. 1.37% of the stock is currently owned by insiders.

About Toll Brothers

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source