Ceredex Value Advisors LLC Reduces Stake in Toll Brothers Inc. $TOL

Key Points

• Ceredex Value Advisors reduced its stake in Toll Brothers by 99.9% in Q3, selling 192,625 shares and leaving just 250 shares valued at about $35,000.
• Wall Street sentiment is broadly positive, with a consensus rating of Moderate Buy and an average price target of $165.25 after several firms raised their targets recently.
• Insiders have been selling material stock—CEO Douglas Yearley sold 45,116 shares (~$7.24M)—even as Toll Brothers beat quarterly estimates with $2.19 EPS and reported 15.4% year‑over‑year revenue growth.

Ceredex Value Advisors LLC reduced its stake in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) by 99.9% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 250 shares of the construction company's stock after selling 192,625 shares during the period. Ceredex Value Advisors LLC's holdings in Toll Brothers were worth $35,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of the stock. Abich Financial Wealth Management LLC purchased a new position in Toll Brothers in the third quarter valued at approximately $28,000. Ramirez Asset Management Inc. purchased a new stake in Toll Brothers in the third quarter worth $28,000. Smithfield Trust Co increased its position in Toll Brothers by 136.4% in the third quarter. Smithfield Trust Co now owns 260 shares of the construction company's stock worth $36,000 after buying an additional 150 shares during the last quarter. Foster Dykema Cabot & Partners LLC bought a new stake in shares of Toll Brothers in the third quarter valued at $41,000. Finally, Root Financial Partners LLC bought a new stake in shares of Toll Brothers in the third quarter valued at $44,000. Institutional investors own 91.76% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on TOL shares. JPMorgan Chase & Co. increased their price target on Toll Brothers from $141.00 to $143.00 and gave the stock an "overweight" rating in a research note on Monday, February 23rd. Keefe, Bruyette & Woods boosted their price objective on Toll Brothers from $143.00 to $170.00 and gave the company a "market perform" rating in a research note on Wednesday, February 25th. Barclays reaffirmed an "underweight" rating on shares of Toll Brothers in a report on Monday, February 23rd. Royal Bank Of Canada increased their target price on shares of Toll Brothers from $144.00 to $161.00 and gave the stock an "outperform" rating in a research report on Thursday, February 19th. Finally, Citizens Jmp reissued a "market outperform" rating and issued a $175.00 price target on shares of Toll Brothers in a research report on Wednesday, February 18th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $165.25.

Insider Buying and Selling

In other Toll Brothers news, Director Paul E. Shapiro sold 3,965 shares of the stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $146.68, for a total value of $581,586.20. Following the sale, the director directly owned 118,680 shares in the company, valued at $17,407,982.40. This represents a 3.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $160.42, for a total transaction of $7,237,508.72. Following the completion of the transaction, the chief executive officer directly owned 321,256 shares of the company's stock, valued at approximately $51,535,887.52. The trade was a 12.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.37% of the company's stock.

Toll Brothers Stock Performance

Shares of TOL opened at $145.71 on Wednesday. Toll Brothers Inc. has a 52-week low of $86.67 and a 52-week high of $168.36. The stock's 50-day simple moving average is $149.81 and its 200 day simple moving average is $141.64. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.62 and a current ratio of 4.57. The stock has a market capitalization of $13.80 billion, a price-to-earnings ratio of 10.41, a price-to-earnings-growth ratio of 1.15 and a beta of 1.45.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its earnings results on Tuesday, February 17th. The construction company reported $2.19 earnings per share for the quarter, beating analysts' consensus estimates of $2.05 by $0.14. Toll Brothers had a return on equity of 16.83% and a net margin of 12.26%.The business had revenue of $2.15 billion during the quarter, compared to analyst estimates of $1.86 billion. During the same quarter in the previous year, the firm earned $1.75 EPS. The company's quarterly revenue was up 15.4% compared to the same quarter last year. Research analysts forecast that Toll Brothers Inc. will post 13.83 EPS for the current fiscal year.

Toll Brothers Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, January 9th. This represents a $1.00 annualized dividend and a yield of 0.7%. Toll Brothers's payout ratio is currently 7.14%.

Toll Brothers Company 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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