Caxton Associates LLP Buys New Stake in Toll Brothers Inc. $TOL

Key Points

• Caxton Associates LLP has purchased 18,574 shares of Toll Brothers Inc. valued at approximately $1,961,000, marking its first investment in the company.
• Major investors, including Long Pond Capital LP and Victory Capital Management Inc., also significantly increased their stakes in Toll Brothers during the first quarter.
• Analysts have raised their price targets for Toll Brothers, with Argus setting a new target of $165.00 and Raymond James Financial increasing its target to $160.00, reflecting strong market sentiments.

Caxton Associates LLP bought a new position in Toll Brothers Inc. (NYSE:TOL - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The fund bought 18,574 shares of the construction company's stock, valued at approximately $1,961,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Sound Income Strategies LLC raised its position in Toll Brothers by 84.2% in the 1st quarter. Sound Income Strategies LLC now owns 245 shares of the construction company's stock worth $26,000 after purchasing an additional 112 shares during the period. Brooklyn Investment Group raised its position in Toll Brothers by 52.8% in the 1st quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock worth $29,000 after purchasing an additional 94 shares during the period. Larson Financial Group LLC raised its position in Toll Brothers by 152.6% in the 1st quarter. Larson Financial Group LLC now owns 293 shares of the construction company's stock worth $31,000 after purchasing an additional 177 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Toll Brothers by 218.4% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 363 shares of the construction company's stock worth $38,000 after purchasing an additional 249 shares during the period. Finally, Operose Advisors LLC purchased a new stake in Toll Brothers in the 1st quarter worth about $42,000. 91.76% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, COO Robert Parahus sold 9,831 shares of the stock in a transaction that occurred 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 transaction, the chief operating officer directly owned 19,692 shares in the company, valued at approximately $2,576,501.28. This trade represents a 33.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Christine Garvey sold 770 shares of the stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $119.82, for a total transaction of $92,261.40. Following the sale, the director directly owned 11,590 shares of the company's stock, valued at $1,388,713.80. The trade was a 6.23% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 42,413 shares of company stock valued at $5,746,216. 1.54% of the stock is currently owned by corporate insiders.

Toll Brothers Stock Down 2.4%

Shares of NYSE TOL traded down $3.47 during midday trading on Friday, reaching $143.48. 975,257 shares of the company's stock traded hands, compared to its average volume of 1,781,204. The company has a quick ratio of 0.51, a current ratio of 4.38 and a debt-to-equity ratio of 0.36. The stock's 50 day simple moving average is $129.03 and its 200-day simple moving average is $113.38. Toll Brothers Inc. has a one year low of $86.67 and a one year high of $169.52. The company has a market cap of $13.83 billion, a price-to-earnings ratio of 10.54, a P/E/G ratio of 0.94 and a beta of 1.33.

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

Toll Brothers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, July 11th were paid a dividend of $0.25 per share. The ex-dividend date was Friday, July 11th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. Toll Brothers's dividend payout ratio (DPR) is currently 7.35%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Bank of America increased their price objective on shares of Toll Brothers from $132.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday, August 19th. Keefe, Bruyette & Woods increased their price objective on shares of Toll Brothers from $143.00 to $145.00 and gave the stock a "market perform" rating in a research report on Thursday, August 28th. Wells Fargo & Company upped their target price on shares of Toll Brothers from $140.00 to $150.00 and gave the stock an "overweight" rating in a research note on Monday, August 18th. Oppenheimer dropped their target price on shares of Toll Brothers from $165.00 to $155.00 and set an "outperform" rating on the stock in a research note on Thursday, May 15th. Finally, Citigroup upped their target price on shares of Toll Brothers from $134.00 to $138.00 and gave the stock a "neutral" rating in a research note on Monday, August 25th. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $149.07.

About Toll Brothers

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.