BlackRock Inc. Invests $1.61 Billion in Toll Brothers Inc. $TOL

Key Points

• BlackRock acquired 9.78 million Toll Brothers shares worth approximately $1.61 billion, giving it a 10.46% stake. Institutional investors collectively own 91.76% of the homebuilder.
• Toll Brothers beat quarterly expectations with $2.97 in EPS and $2.66 billion in revenue, though revenue declined 9.7% year over year and EPS fell from $3.73 in the prior-year quarter.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $166.06 price target; meanwhile, the COO and chairman sold shares, reducing their respective holdings.

BlackRock Inc. bought a new stake in Toll Brothers Inc. (NYSE:TOL - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 9,776,609 shares of the construction company's stock, valued at approximately $1,610,696,000. BlackRock Inc. owned 10.46% of Toll Brothers as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in the company. Price T Rowe Associates Inc. MD lifted its position in 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 valued at $446,756,000 after buying an additional 3,151,509 shares during the period. Norges Bank bought a new position in shares of Toll Brothers in the 4th quarter worth about $168,312,000. Bank of New York Mellon Corp purchased a new position in Toll Brothers during the 2nd quarter valued at about $164,804,000. Ascentis Wealth Management LLC lifted its holdings in shares of Toll Brothers by 16,397.7% during the second quarter. Ascentis Wealth Management LLC now owns 539,641 shares of the construction company's stock valued at $88,906,000 after purchasing an additional 536,370 shares during the last quarter. Finally, Pacer Advisors Inc. lifted its holdings in shares of Toll Brothers by 3,700.7% during the first quarter. Pacer Advisors Inc. now owns 430,356 shares of the construction company's stock valued at $58,731,000 after purchasing an additional 419,033 shares during the last quarter. 91.76% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on TOL shares. Argus set a $170.00 price objective on Toll Brothers in a research note on Tuesday, June 2nd. BTIG Research began coverage on shares of Toll Brothers in a research report on Tuesday, June 9th. They set a "buy" rating on the stock. Citigroup raised shares of Toll Brothers from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $146.00 to $176.00 in a report on Friday, July 10th. UBS Group upped their price objective on Toll Brothers from $187.00 to $195.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Barclays lifted their target price on Toll Brothers from $115.00 to $122.00 and gave the stock an "underweight" rating in a report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $166.06.

Insider Buying and Selling

In other Toll Brothers news, COO Robert Parahus sold 7,500 shares of the company'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 transaction of $1,122,450.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the firm'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 completion of the transaction, the chairman directly owned 321,256 shares in the company, valued at approximately $50,302,264.48. This represents a 19.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.37% of the stock is currently owned by corporate insiders.

Toll Brothers Price Performance

NYSE TOL opened at $145.12 on Friday. The business's fifty day moving average price is $151.96 and its 200-day moving average price is $146.43. The stock has a market capitalization of $13.56 billion, a price-to-earnings ratio of 11.65, a PEG ratio of 1.23 and a beta of 1.35. The company has a debt-to-equity ratio of 0.32, a current ratio of 4.53 and a quick ratio of 0.59. Toll Brothers Inc. has a 1-year low of $123.14 and a 1-year 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 EPS for the quarter, topping the consensus estimate of $2.93 by $0.04. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.73 earnings per share. On average, equities analysts predict that Toll Brothers Inc. will post 12.69 earnings per share for the current year.

Toll Brothers Announces Dividend

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

More Toll Brothers News

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

• Positive Sentiment: Toll Brothers exceeded third-quarter expectations, reporting $2.97 in earnings per share versus the $2.93 consensus estimate and $2.66 billion in revenue versus $2.62 billion expected. Higher home prices helped offset fewer deliveries, while orders increased. Toll Brothers Beats Q3 Earnings and Revenue Estimates on Higher Pricing
• Positive Sentiment: Management projected approximately $700 million in share repurchases, reaffirmed roughly $10.5 billion in 2026 revenue and maintained its expectation for 8%–10% community growth. These plans may support per-share earnings and signal confidence in the business outlook. Toll Brothers Projects Buybacks and Reaffirms Revenue Outlook
• Positive Sentiment: Truist raised its price target from $165 to $170 and retained a “buy” rating, implying substantial upside based on the referenced trading level. Toll Brothers’ valuation also appears relatively moderate, with a reported price-to-earnings ratio of about 11.7. Benzinga Analyst Price Target Update
• Neutral Sentiment: The opening of a new model home in Ridgefield, Washington, highlights ongoing community expansion and marketing activity, but is unlikely to materially affect near-term financial results. New Model Home Opens at Toll Brothers at Quail Ridge
• Negative Sentiment: Revenue declined 9.7% year over year and quarterly EPS fell from $3.73 to $2.97 in the comparable period. Margin pressure, fewer deliveries and high borrowing costs remain risks, while a reported sale of TOL shares by commentator Stephanie Link may weigh modestly on sentiment. Trade Tracker: Stephanie Link Sells Toll Brothers

Toll Brothers 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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