FJ Capital Management LLC Reduces Stock Position in Toll Brothers Inc. $TOL

Key Points

• FJ Capital Management LLC has reduced its stake in Toll Brothers Inc. by 52.4% in the first quarter, now holding 13,837 shares valued at $1,461,000 after selling 15,257 shares.
• Insider trades included Michael J. Grubb selling 500 shares and Robert Parahus selling 9,831 shares, indicating a significant decrease in their ownership percentages of the stock.
• Toll Brothers reported a strong quarterly performance with an EPS of $3.73, surpassing estimates, while also announcing a dividend of $0.25, yielding 0.7% annually.

FJ Capital Management LLC lowered its position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) by 52.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 13,837 shares of the construction company's stock after selling 15,257 shares during the quarter. FJ Capital Management LLC's holdings in Toll Brothers were worth $1,461,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in TOL. Trail Ridge Investment Advisors LLC raised 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 acquiring an additional 132 shares in the last quarter. Left Brain Wealth Management LLC purchased a new position in Toll Brothers during the 1st quarter worth $317,000. MQS Management LLC bought a new stake in Toll Brothers during the 1st quarter valued at $649,000. Financial Security Advisor Inc. bought a new stake in Toll Brothers during the 1st quarter valued at $231,000. Finally, Concurrent Investment Advisors LLC bought a new stake in Toll Brothers during the 1st quarter valued at $227,000. 91.76% of the stock is owned by institutional investors.

Toll Brothers Price Performance

Shares of NYSE TOL traded up $4.68 during midday trading on Thursday, hitting $145.47. The stock had a trading volume of 2,726,651 shares, compared to its average volume of 1,782,300. 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 has a 50 day simple moving average of $126.11 and a 200-day simple moving average of $112.30. Toll Brothers Inc. has a 1 year low of $86.67 and a 1 year high of $169.52. The company has a market capitalization of $14.02 billion, a PE ratio of 10.69, a P/E/G ratio of 0.91 and a beta of 1.33.

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

Toll Brothers Announces Dividend

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

Insiders Place Their Bets

In related news, CEO Douglas C. Jr. Yearley sold 25,000 shares of the business's stock in a transaction on Friday, August 29th. The stock was sold at an average price of $138.26, for a total value of $3,456,500.00. Following the sale, the chief executive officer owned 286,117 shares in the company, valued at approximately $39,558,536.42. The trade was a 8.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Stephen F. East sold 2,500 shares of the firm's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $115.33, for a total value of $288,325.00. Following the transaction, the director owned 12,787 shares of the company's stock, valued at $1,474,724.71. This trade represents a 16.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 38,601 shares of company stock worth $5,183,374. Insiders own 1.54% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Seaport Res Ptn raised Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Evercore ISI reissued an "outperform" rating and issued a $169.00 price objective (up previously from $167.00) on shares of Toll Brothers in a research note on Thursday, May 22nd. Keefe, Bruyette & Woods increased their target price on Toll Brothers from $143.00 to $145.00 and gave the company a "market perform" rating in a research report on Thursday, August 28th. Bank of America boosted their price target on Toll Brothers from $132.00 to $145.00 and gave the stock a "buy" rating in a research report on Tuesday, August 19th. Finally, Wedbush reaffirmed an "outperform" rating and set a $165.00 price target on shares of Toll Brothers in a research report on Tuesday, August 26th. Two 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 assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $147.85.

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.