Intech Investment Management LLC Cuts Position in Toll Brothers Inc. $TOL

Key Points

• Intech Investment Management reduced its Toll Brothers position by 18.2% in the fourth quarter, selling 9,089 shares and ending with 40,941 shares valued at about $5.54 million.
• Insider activity was also negative: Director Stephen F. East sold 1,000 shares at $139.70 each, trimming his stake by 6.92%.
• Toll Brothers posted solid earnings, beating expectations with Q2 EPS of $2.72 and revenue of $2.53 billion, while also raising its quarterly dividend to $0.26 per share and maintaining a “Moderate Buy” analyst consensus with a $163.81 price target.

Intech Investment Management LLC lessened its position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) by 18.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 40,941 shares of the construction company's stock after selling 9,089 shares during the quarter. Intech Investment Management LLC's holdings in Toll Brothers were worth $5,536,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of TOL. Capital World Investors boosted its holdings in shares of Toll Brothers by 51.5% in the 3rd quarter. Capital World Investors now owns 5,187,673 shares of the construction company's stock worth $716,625,000 after purchasing an additional 1,763,211 shares during the period. Holocene Advisors LP boosted its holdings in shares of Toll Brothers by 78.0% in the 3rd quarter. Holocene Advisors LP now owns 2,224,289 shares of the construction company's stock worth $307,263,000 after purchasing an additional 974,567 shares during the period. Victory Capital Management Inc. boosted its holdings in shares of Toll Brothers by 209.8% in the 3rd quarter. Victory Capital Management Inc. now owns 917,184 shares of the construction company's stock worth $126,700,000 after purchasing an additional 621,117 shares during the period. Jennison Associates LLC boosted its holdings in shares of Toll Brothers by 52.0% in the 4th quarter. Jennison Associates LLC now owns 1,090,590 shares of the construction company's stock worth $147,470,000 after purchasing an additional 372,976 shares during the period. Finally, Two Sigma Investments LP boosted its holdings in shares of Toll Brothers by 663.2% in the 3rd quarter. Two Sigma Investments LP now owns 290,374 shares of the construction company's stock worth $40,112,000 after purchasing an additional 252,329 shares during the period. Hedge funds and other institutional investors own 91.76% of the company's stock.

Insider Activity

In related news, Director Stephen F. East sold 1,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $139.70, for a total transaction of $139,700.00. Following the completion of the sale, the director directly owned 13,442 shares of the company's stock, valued at approximately $1,877,847.40. This trade represents a 6.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.37% of the company's stock.

Toll Brothers Price Performance

Shares of TOL stock opened at $138.67 on Monday. Toll Brothers Inc. has a 52-week low of $100.92 and a 52-week high of $168.36. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.59 and a current ratio of 4.67. The firm has a market capitalization of $13.13 billion, a P/E ratio of 10.49, a P/E/G ratio of 1.15 and a beta of 1.36. The stock has a 50 day moving average price of $137.80 and a 200 day moving average price of $141.79.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.58 by $0.14. Toll Brothers had a return on equity of 15.47% and a net margin of 11.66%.The firm had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.42 billion. During the same period last year, the company earned $3.50 EPS. Toll Brothers's quarterly revenue was down 7.6% compared to the same quarter last year. As a group, sell-side analysts predict that Toll Brothers Inc. will post 12.7 earnings per share for the current year.

Toll Brothers Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 24th. Investors of record on Friday, April 10th were paid a dividend of $0.26 per share. The ex-dividend date of this dividend was Friday, April 10th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Toll Brothers's previous quarterly dividend of $0.25. Toll Brothers's dividend payout ratio is 7.87%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on TOL shares. Evercore reiterated an "outperform" rating and issued a $185.00 target price on shares of Toll Brothers in a report on Thursday, May 21st. Weiss Ratings cut Toll Brothers from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, May 22nd. Barclays dropped their target price on Toll Brothers from $116.00 to $115.00 and set an "underweight" rating for the company in a report on Wednesday, April 8th. JPMorgan Chase & Co. lifted their target price on Toll Brothers from $141.00 to $143.00 and gave the stock an "overweight" rating in a report on Monday, February 23rd. Finally, Citigroup reiterated a "neutral" rating on shares of Toll Brothers in a report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $163.81.

Toll Brothers Company 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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