Hsbc Holdings PLC Acquires 18,703 Shares of Toll Brothers Inc. $TOL

Key Points

• HSBC Holdings PLC boosted its stake in Toll Brothers by 112.1% in the first quarter, buying 18,703 additional shares and bringing its total holding to 35,381 shares valued at about $4.8 million.
• Toll Brothers reported better-than-expected quarterly earnings of $2.72 per share and revenue of $2.53 billion, even though revenue fell 7.6% year over year. The company also declared a quarterly dividend of $0.26 per share, equal to an annualized yield of 0.7%.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and an average price target of $164.88, while the shares were up 2.3% to $149.92. Meanwhile, several insiders, including the COO and chairman, sold shares in June.

Hsbc Holdings PLC increased its stake in Toll Brothers Inc. (NYSE:TOL - Free Report) by 112.1% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 35,381 shares of the construction company's stock after purchasing an additional 18,703 shares during the quarter. Hsbc Holdings PLC's holdings in Toll Brothers were worth $4,806,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in TOL. Price T Rowe Associates Inc. MD grew its holdings in shares of Toll Brothers by 2,067.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,303,915 shares of the construction company's stock worth $446,756,000 after purchasing an additional 3,151,509 shares in the last quarter. Norges Bank bought a new stake in Toll Brothers during the fourth quarter valued at approximately $168,312,000. Bamco Inc. NY grew its stake in Toll Brothers by 0.8% in the 4th quarter. Bamco Inc. NY now owns 1,166,270 shares of the construction company's stock worth $157,703,000 after buying an additional 9,385 shares in the last quarter. Morgan Stanley increased its holdings in shares of Toll Brothers by 3.3% in the 4th quarter. Morgan Stanley now owns 1,105,793 shares of the construction company's stock worth $149,526,000 after buying an additional 35,719 shares during the last quarter. Finally, Victory Capital Management Inc. raised its position in shares of Toll Brothers by 20.6% during the 4th quarter. Victory Capital Management Inc. now owns 1,105,754 shares of the construction company's stock valued at $149,520,000 after buying an additional 188,570 shares in the last quarter. 91.76% of the stock is currently owned by institutional investors.

Toll Brothers Stock Up 2.3%

Shares of NYSE TOL opened at $149.92 on Friday. The firm has a fifty day simple moving average of $147.14 and a two-hundred day simple moving average of $145.63. Toll Brothers Inc. has a 12 month low of $117.50 and a 12 month high of $168.36. The company has a current ratio of 4.67, a quick ratio of 0.59 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $14.01 billion, a PE ratio of 11.34, a price-to-earnings-growth ratio of 1.21 and a beta of 1.34.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings results on Tuesday, May 19th. The construction company reported $2.72 earnings per share for the quarter, topping the consensus estimate of $2.58 by $0.14. Toll Brothers had a return on equity of 15.47% and a net margin of 11.66%.The company had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.42 billion. During the same period in the prior year, the firm earned $3.50 earnings per share. The firm's revenue for the quarter was down 7.6% on a year-over-year basis. Equities analysts expect that Toll Brothers Inc. will post 12.69 earnings per share for the current year.

Toll Brothers Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.7%. Toll Brothers's payout ratio is presently 7.87%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Weiss Ratings upgraded Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 17th. Barclays increased their price objective on Toll Brothers from $115.00 to $122.00 and gave the company an "underweight" rating in a research report on Tuesday, July 14th. Truist Financial decreased their price objective on Toll Brothers from $170.00 to $165.00 and set a "buy" rating on the stock in a report on Thursday, May 21st. UBS Group upgraded Toll Brothers from a "buy" rating to a "buy" rating in a research report on Tuesday, June 9th. Finally, BTIG Research began coverage on Toll Brothers in a research note on Tuesday, June 9th. They issued a "buy" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $164.88.

Insiders Place Their Bets

In other Toll Brothers news, COO Robert Parahus sold 7,500 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $149.66, for a total transaction of $1,122,450.00. Following the completion of the sale, the chief operating officer owned 23,457 shares of the company's stock, valued at approximately $3,510,574.62. The trade was a 24.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $156.58, for a total value of $12,206,507.06. Following the completion of the transaction, the chairman owned 321,256 shares in the company, valued at $50,302,264.48. The trade was a 19.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.37% of the company's stock.

Toll Brothers 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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