Gamco Investors INC. ET AL Boosts Holdings in Toll Brothers Inc. $TOL

Key Points

• Gamco Investors INC. ET AL increased its stake in Toll Brothers Inc. by 26.1%, acquiring an additional 7,000 shares for a total of 33,850 shares valued at approximately $3.57 million.
• Various hedge funds showed significant interest in Toll Brothers, with Sound Income Strategies LLC increasing its stake by 84.2%, among others, reflecting a strong institutional ownership of 91.76% in the company.
• Analysts have set new price targets for Toll Brothers, with ratings reflecting optimism, including Evercore ISI's target of $169.00 and Wells Fargo's boost to $150.00, contributing to a consensus rating of "Moderate Buy".

Gamco Investors INC. ET AL raised its position in Toll Brothers Inc. (NYSE:TOL - Free Report) by 26.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 33,850 shares of the construction company's stock after buying an additional 7,000 shares during the period. Gamco Investors INC. ET AL's holdings in Toll Brothers were worth $3,574,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in TOL. Sound Income Strategies LLC grew its position in shares of 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 acquiring an additional 112 shares in the last quarter. Brooklyn Investment Group raised its stake in Toll Brothers by 52.8% during the 1st quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock valued at $29,000 after acquiring an additional 94 shares in the last quarter. Larson Financial Group LLC lifted its holdings in Toll Brothers by 152.6% in the first 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. boosted its holdings in shares of Toll Brothers by 218.4% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 363 shares of the construction company's stock valued at $38,000 after acquiring an additional 249 shares in the last quarter. Finally, Quarry LP increased its position in shares of Toll Brothers by 1,035.7% during the 4th quarter. Quarry LP now owns 318 shares of the construction company's stock valued at $40,000 after purchasing an additional 290 shares during the period. Institutional investors own 91.76% of the company's stock.

Toll Brothers Price Performance

NYSE TOL traded down $0.93 during trading on Tuesday, hitting $138.08. 766,559 shares of the company's stock were exchanged, compared to its average volume of 1,770,150. The stock's 50 day moving average price is $124.40 and its two-hundred day moving average price is $111.77. The company has a market cap of $13.31 billion, a PE ratio of 10.14, a P/E/G ratio of 0.91 and a beta of 1.33. Toll Brothers Inc. has a fifty-two week low of $86.67 and a fifty-two week high of $169.52. The company has a current ratio of 4.38, a quick ratio of 0.51 and a debt-to-equity ratio of 0.36.

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

Toll Brothers Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were issued a dividend of $0.25 per share. The ex-dividend date was Friday, July 11th. This represents a $1.00 annualized dividend and a yield of 0.7%. Toll Brothers's payout ratio is 7.35%.

Analyst Ratings Changes

Several research firms have issued reports on TOL. Keefe, Bruyette & Woods boosted their price objective on Toll Brothers from $143.00 to $145.00 and gave the stock a "market perform" rating in a report on Thursday, August 28th. Raymond James Financial restated a "strong-buy" rating and issued a $160.00 price objective (up previously from $130.00) on shares of Toll Brothers in a report on Monday, August 25th. Evercore ISI reissued an "outperform" rating and issued a $169.00 price target (up previously from $167.00) on shares of Toll Brothers in a research report on Thursday, May 22nd. Citigroup boosted their price objective on shares of Toll Brothers from $134.00 to $138.00 and gave the stock a "neutral" rating in a report on Monday, August 25th. Finally, Royal Bank Of Canada raised their price target on shares of Toll Brothers from $133.00 to $145.00 and gave the stock an "outperform" rating in a research note on Thursday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $147.85.

Insiders Place Their Bets

In related news, CAO Michael J. Grubb sold 500 shares of Toll Brothers stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $120.00, for a total value of $60,000.00. Following the completion of the sale, the chief accounting officer owned 2,439 shares of the company's stock, valued at approximately $292,680. This trade represents a 17.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Stephen F. East sold 2,500 shares of the firm's stock in a transaction on 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 directly owned 12,787 shares of the company's stock, valued at $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. Over the last ninety days, insiders sold 13,601 shares of company stock valued at $1,726,874. 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.