EMG Holdings L.P. Cuts Stake in Toll Brothers Inc. $TOL

Key Points

• EMG Holdings L.P. reduced its stake in Toll Brothers Inc. by 43.7%, owning 19,971 shares valued at approximately $2.11 million after selling 15,529 shares in the first quarter.
• Toll Brothers reported quarterly earnings of $3.73 per share, surpassing analyst expectations, with revenue up 8.0% year-over-year at $2.95 billion.
• The company has a strong market presence, with institutional investors holding 91.76% of the company's stock, and recently announced a $0.25 dividend, yielding 0.7% annually.

EMG Holdings L.P. lowered its position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) by 43.7% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 19,971 shares of the construction company's stock after selling 15,529 shares during the period. Toll Brothers comprises approximately 1.0% of EMG Holdings L.P.'s holdings, making the stock its 12th largest holding. EMG Holdings L.P.'s holdings in Toll Brothers were worth $2,109,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Trail Ridge Investment Advisors LLC increased its stake 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 period. Left Brain Wealth Management LLC purchased a new position in shares of Toll Brothers during the first quarter valued at $317,000. MQS Management LLC purchased a new position in shares of Toll Brothers during the first quarter valued at $649,000. Financial Security Advisor Inc. purchased a new position in shares of Toll Brothers during the first quarter valued at $231,000. Finally, Concurrent Investment Advisors LLC purchased a new position in shares of Toll Brothers during the first quarter valued at $227,000. Hedge funds and other institutional investors own 91.76% of the company's stock.

Toll Brothers Price Performance

Shares of TOL stock opened at $139.2170 on Monday. The company has a debt-to-equity ratio of 0.36, a current ratio of 4.38 and a quick ratio of 0.51. The company has a market cap of $13.67 billion, a P/E ratio of 10.23, a PEG ratio of 0.91 and a beta of 1.33. The stock's 50-day moving average is $120.67 and its 200 day moving average is $111.15. Toll Brothers Inc. has a 1-year low of $86.67 and a 1-year high of $169.52.

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

Toll Brothers Dividend Announcement

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

Wall Street Analyst Weigh In

TOL has been the topic of several research reports. Seaport Res Ptn upgraded Toll Brothers from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 23rd. Evercore ISI reaffirmed an "outperform" rating and set a $169.00 price objective (up previously from $167.00) on shares of Toll Brothers in a research report on Thursday, May 22nd. Royal Bank Of Canada raised their price objective on Toll Brothers from $133.00 to $145.00 and gave the company an "outperform" rating in a research report on Thursday. Raymond James Financial reaffirmed a "strong-buy" rating and set a $130.00 price objective (down previously from $145.00) on shares of Toll Brothers in a research report on Friday, May 23rd. Finally, Wall Street Zen raised Toll Brothers from a "sell" rating to a "hold" rating in a research report on Wednesday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $143.54.

Insiders Place Their Bets

In other news, Director Christine Garvey sold 770 shares of the firm's stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $119.82, for a total value of $92,261.40. Following the completion of the transaction, the director directly owned 11,590 shares in the company, valued at $1,388,713.80. This trade represents a 6.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Stephen F. East sold 2,500 shares of the firm's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $115.33, for a total value of $288,325.00. Following the completion of the transaction, the director owned 12,787 shares of the company's stock, valued at approximately $1,474,724.71. The trade was a 16.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 13,601 shares of company stock worth $1,726,874 in the last three months. Insiders own 1.54% of the company's stock.

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.

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