Gateway Investment Advisers LLC Acquires 3,432 Shares of Toll Brothers Inc. $TOL

Key Points

• Gateway Investment Advisers LLC increased its stake in Toll Brothers Inc. by 2.8% during the second quarter, acquiring an additional 3,432 shares, bringing its total ownership to 126,658 shares valued at approximately $14.5 million.
• Analysts have shown a strong sentiment towards Toll Brothers, with a consensus rating of "Moderate Buy" and multiple price target increases, including a new target of $165.00 set by Wedbush.
• Insider selling has occurred, with COO Robert Parahus and CEO Douglas C. Jr. Yearley selling a combined total of 34,831 shares, signaling a potential change in insider confidence.

Gateway Investment Advisers LLC boosted its stake in Toll Brothers Inc. (NYSE:TOL - Free Report) by 2.8% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 126,658 shares of the construction company's stock after purchasing an additional 3,432 shares during the quarter. Gateway Investment Advisers LLC owned about 0.13% of Toll Brothers worth $14,455,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Greenhaven Associates Inc. raised its stake in Toll Brothers by 0.7% in the second quarter. Greenhaven Associates Inc. now owns 5,601,916 shares of the construction company's stock valued at $639,347,000 after purchasing an additional 39,334 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Toll Brothers by 21.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,159,289 shares of the construction company's stock valued at $227,988,000 after purchasing an additional 375,372 shares in the last quarter. AQR Capital Management LLC raised its stake in Toll Brothers by 17.1% in the first quarter. AQR Capital Management LLC now owns 1,424,689 shares of the construction company's stock valued at $146,572,000 after purchasing an additional 208,064 shares in the last quarter. Long Pond Capital LP acquired a new position in Toll Brothers in the first quarter valued at about $117,870,000. Finally, Goldman Sachs Group Inc. raised its stake in Toll Brothers by 6.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,091,176 shares of the construction company's stock valued at $115,217,000 after purchasing an additional 67,156 shares in the last quarter. Institutional investors and hedge funds own 91.76% of the company's stock.

Toll Brothers Trading Down 0.2%

TOL traded down $0.28 during trading on Friday, reaching $139.56. 3,055,508 shares of the company's stock were exchanged, compared to its average volume of 1,785,973. Toll Brothers Inc. has a one year low of $86.67 and a one year 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. The stock has a market capitalization of $13.45 billion, a PE ratio of 10.25, a price-to-earnings-growth ratio of 0.92 and a beta of 1.33. The firm has a fifty day moving average price of $131.63 and a two-hundred day moving average price of $114.62.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its earnings results on Tuesday, August 19th. The construction company reported $3.73 earnings per share for the quarter, topping 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 analyst estimates of $2.86 billion. During the same period in the previous year, the firm posted $3.60 EPS. The company's revenue for the quarter was up 8.0% compared to the same quarter last year. As a group, equities research analysts forecast that Toll Brothers Inc. will post 13.83 earnings per share for the current fiscal year.

Toll Brothers Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be issued a $0.25 dividend. The ex-dividend date is Friday, October 10th. This represents a $1.00 annualized dividend and a yield of 0.7%. Toll Brothers's dividend payout ratio is presently 7.35%.

Analysts Set New Price Targets

Several brokerages have commented on TOL. Wells Fargo & Company boosted their target price on Toll Brothers from $140.00 to $150.00 and gave the stock an "overweight" rating in a research note on Monday, August 18th. Seaport Res Ptn upgraded shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Royal Bank Of Canada boosted their target price 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. Argus upped their price target on shares of Toll Brothers from $150.00 to $165.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Finally, Keefe, Bruyette & Woods increased their price target on Toll Brothers from $143.00 to $145.00 and gave the company a "market perform" rating in a research note on Thursday, August 28th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Toll Brothers has an average rating of "Moderate Buy" and a consensus price target of $149.79.

Insiders Place Their Bets

In other news, COO Robert Parahus sold 9,831 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The stock was 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 of the company's stock, valued at $2,576,501.28. This represents a 33.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Christine Garvey sold 770 shares of the company's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $119.82, for a total value of $92,261.40. Following the transaction, the director directly owned 11,590 shares in the company, valued at $1,388,713.80. The trade was a 6.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 42,413 shares of company stock valued at $5,746,216 over 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.