Canada Pension Plan Investment Board Increases Stake in Toll Brothers Inc. $TOL

Key Points

• The Canada Pension Plan Investment Board increased its stake in Toll Brothers Inc. by 46.5%, owning 74,700 shares valued at approximately $7.89 million after purchasing an additional 23,700 shares.
• Toll Brothers reported a quarterly EPS of $3.73, exceeding analysts' expectations, and a revenue of $2.95 billion, marking an 8% year-over-year increase.
• The company declared a $0.25 quarterly dividend, resulting in an annualized dividend yield of 0.7%.

Canada Pension Plan Investment Board boosted its stake in Toll Brothers Inc. (NYSE:TOL - Free Report) by 46.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 74,700 shares of the construction company's stock after purchasing an additional 23,700 shares during the quarter. Canada Pension Plan Investment Board owned about 0.07% of Toll Brothers worth $7,888,000 as of its most recent SEC filing.

A number of other large investors have also bought and sold shares of the stock. Trail Ridge Investment Advisors LLC grew its holdings in shares of Toll Brothers by 0.5% during the first quarter. Trail Ridge Investment Advisors LLC now owns 25,624 shares of the construction company's stock valued at $2,706,000 after buying an additional 132 shares during the last quarter. Left Brain Wealth Management LLC bought a new position in shares of Toll Brothers during the first quarter valued at about $317,000. MQS Management LLC bought a new position in shares of Toll Brothers during the first quarter valued at about $649,000. Financial Security Advisor Inc. bought a new position in shares of Toll Brothers during the first quarter valued at about $231,000. Finally, Concurrent Investment Advisors LLC bought a new position in shares of Toll Brothers during the first quarter valued at about $227,000. 91.76% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, CEO Douglas C. Jr. Yearley sold 25,000 shares of the company's stock in a transaction on Friday, August 29th. The shares were sold at an average price of $138.26, for a total value of $3,456,500.00. Following the completion of the sale, the chief executive officer owned 286,117 shares of the company's stock, valued at approximately $39,558,536.42. This represents a 8.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Robert Parahus sold 9,831 shares of the company's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $130.84, for a total transaction of $1,286,288.04. Following the completion of the sale, the chief operating officer directly owned 19,692 shares of the company's stock, valued at $2,576,501.28. This trade represents a 33.30% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 38,601 shares of company stock worth $5,183,374. 1.54% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

TOL has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods raised their price target on shares of Toll Brothers from $143.00 to $145.00 and gave the company a "market perform" rating in a research report on Thursday, August 28th. Wall Street Zen raised shares of Toll Brothers from a "sell" rating to a "hold" rating in a research report on Wednesday, May 14th. Wedbush reaffirmed an "outperform" rating and issued a $165.00 price objective on shares of Toll Brothers in a research report on Friday. Seaport Res Ptn raised shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Finally, Evercore ISI reissued an "outperform" rating and issued a $169.00 price target (up previously from $167.00) on shares of Toll Brothers in a research report on Thursday, May 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $149.07.

Toll Brothers Price Performance

NYSE:TOL traded up $1.83 during mid-day trading on Friday, hitting $147.24. 2,739,985 shares of the stock traded hands, compared to its average volume of 1,683,980. The business's 50-day moving average price is $126.77 and its 200 day moving average price is $112.47. The company has a market cap of $14.19 billion, a PE ratio of 10.82, a price-to-earnings-growth ratio of 0.96 and a beta of 1.33. Toll Brothers Inc. has a 12-month low of $86.67 and a 12-month high of $169.52. The company has a quick ratio of 0.51, a current ratio of 4.38 and a debt-to-equity ratio of 0.36.

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

Toll Brothers Dividend Announcement

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

Toll Brothers Profile

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.