Castleark Management LLC Raises Stake in Toll Brothers Inc. $TOL

Key Points

• Castleark Management increased its Toll Brothers stake by 25.1% in the first quarter, adding 10,310 shares to own 51,403 shares worth approximately $7.0 million. Institutional investors collectively own 91.76% of the company.
• Toll Brothers exceeded quarterly expectations, reporting $2.72 in EPS and $2.53 billion in revenue, although revenue declined 7.6% year over year. The company also pays a quarterly dividend of $0.26, representing a 0.7% yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $164.88, while company insiders recently sold shares, including substantial sales by the COO and chairman.

Castleark Management LLC grew its holdings in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) by 25.1% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 51,403 shares of the construction company's stock after acquiring an additional 10,310 shares during the quarter. Castleark Management LLC owned 0.05% of Toll Brothers worth $7,015,000 at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in TOL. OMERS ADMINISTRATION Corp grew its holdings in shares of Toll Brothers by 9.2% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 13,270 shares of the construction company's stock valued at $1,811,000 after purchasing an additional 1,120 shares during the last quarter. Waverly Advisors LLC boosted its position in Toll Brothers by 1,130.7% during the first quarter. Waverly Advisors LLC now owns 39,111 shares of the construction company's stock valued at $5,337,000 after buying an additional 35,933 shares during the period. Entropy Technologies LP bought a new position in shares of Toll Brothers during the first quarter valued at about $4,609,000. Renaissance Technologies LLC grew its stake in shares of Toll Brothers by 172.9% during the first quarter. Renaissance Technologies LLC now owns 173,000 shares of the construction company's stock valued at $23,609,000 after buying an additional 109,600 shares during the last quarter. Finally, Compound Planning Inc. increased its holdings in shares of Toll Brothers by 7.3% in the first quarter. Compound Planning Inc. now owns 4,692 shares of the construction company's stock worth $640,000 after buying an additional 320 shares during the period. 91.76% of the stock is currently owned by institutional investors.

Toll Brothers Stock Performance

Toll Brothers stock opened at $149.92 on Monday. The company has a current ratio of 4.67, a quick ratio of 0.59 and a debt-to-equity ratio of 0.33. The firm has a 50-day moving average of $147.14 and a 200-day moving average of $145.70. The firm has a market cap of $14.01 billion, a P/E ratio of 11.34, a P/E/G ratio of 1.24 and a beta of 1.34. Toll Brothers Inc. has a 1-year low of $117.50 and a 1-year high of $168.36.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its earnings results on Tuesday, May 19th. The construction company reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.58 by $0.14. Toll Brothers had a return on equity of 15.47% and a net margin of 11.66%.The company had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.42 billion. During the same period last year, the firm earned $3.50 earnings per share. Toll Brothers's quarterly revenue was down 7.6% on a year-over-year basis. Sell-side analysts expect that Toll Brothers Inc. will post 12.69 EPS for the current year.

Toll Brothers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were given a $0.26 dividend. 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 dividend payout ratio (DPR) is currently 7.87%.

Insider Buying and Selling

In other news, COO Robert Parahus sold 7,500 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $149.66, for a total transaction of $1,122,450.00. Following the transaction, the chief operating officer directly owned 23,457 shares of the company's stock, valued at approximately $3,510,574.62. The trade was a 24.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $156.58, for a total value of $12,206,507.06. Following 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 position. The SEC filing for this sale provides additional information. 1.37% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

TOL has been the subject of a number of recent research reports. Piper Sandler lowered Toll Brothers from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 9th. Argus set a $170.00 price target on Toll Brothers in a research report on Tuesday, June 2nd. Barclays lifted their price target on Toll Brothers from $115.00 to $122.00 and gave the stock an "underweight" rating in a research note on Tuesday, July 14th. UBS Group upgraded Toll Brothers from a "buy" rating to a "buy" rating in a research report on Tuesday, June 9th. Finally, Keefe, Bruyette & Woods raised Toll Brothers from a "market perform" rating to an "outperform" rating and increased their price objective for the company from $158.00 to $161.00 in a research note on Tuesday, June 9th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $164.88.

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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