Jennison Associates LLC Buys 327,953 Shares of Toll Brothers Inc. $TOL

Key Points

• Jennison Associates LLC increased its Toll Brothers stake by 30.1% in the first quarter, buying 327,953 additional shares and bringing its holding to 1,418,543 shares worth about $193.6 million.
• Toll Brothers reported better-than-expected quarterly results, posting EPS of $2.72 versus estimates of $2.58 and revenue of $2.53 billion versus expectations of $2.42 billion, though revenue still fell 7.6% year over year.
• The company declared a quarterly dividend of $0.26 per share, while analysts currently rate the stock a Moderate Buy with a consensus price target of $164.88.

Jennison Associates LLC lifted its position in Toll Brothers Inc. (NYSE:TOL - Free Report) by 30.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,418,543 shares of the construction company's stock after acquiring an additional 327,953 shares during the period. Jennison Associates LLC owned approximately 1.50% of Toll Brothers worth $193,589,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Sivia Capital Partners LLC acquired a new stake in Toll Brothers in the second quarter worth $705,000. Brown Advisory Inc. grew its holdings in shares of Toll Brothers by 4.6% in the 2nd quarter. Brown Advisory Inc. now owns 4,212 shares of the construction company's stock valued at $481,000 after buying an additional 186 shares during the period. NewEdge Advisors LLC increased its position in shares of Toll Brothers by 5.8% in the 2nd quarter. NewEdge Advisors LLC now owns 6,203 shares of the construction company's stock valued at $708,000 after buying an additional 340 shares in the last quarter. Sei Investments Co. increased its position in shares of Toll Brothers by 164.9% in the 2nd quarter. Sei Investments Co. now owns 38,556 shares of the construction company's stock valued at $4,400,000 after buying an additional 24,001 shares in the last quarter. Finally, Treasurer of the State of North Carolina raised its stake in Toll Brothers by 1.5% during the 2nd quarter. Treasurer of the State of North Carolina now owns 46,208 shares of the construction company's stock worth $5,274,000 after buying an additional 700 shares during the period. Institutional investors own 91.76% of the company's stock.

Toll Brothers Trading Down 3.4%

TOL opened at $150.58 on Friday. The stock has a market capitalization of $14.07 billion, a P/E ratio of 11.39, a P/E/G ratio of 1.25 and a beta of 1.34. Toll Brothers Inc. has a 12 month low of $115.50 and a 12 month high of $168.36. The firm's fifty day simple moving average is $145.56 and its 200 day simple moving average is $145.22. The company has a current ratio of 4.67, a quick ratio of 0.59 and a debt-to-equity ratio of 0.33.

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

Toll Brothers Dividend Announcement

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

Insider Activity

In related news, COO Robert Parahus sold 7,500 shares of the 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 transaction, the chief operating officer directly owned 23,457 shares in the company, valued at approximately $3,510,574.62. This trade represents a 24.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of Toll Brothers stock in a transaction that occurred on 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 sale, the chairman directly owned 321,256 shares in the company, valued at approximately $50,302,264.48. This represents a 19.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.37% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Keefe, Bruyette & Woods upgraded Toll Brothers from a "market perform" rating to an "outperform" rating and lifted their target price for the stock from $158.00 to $161.00 in a report on Tuesday, June 9th. Barclays increased their price target on Toll Brothers from $115.00 to $122.00 and gave the stock an "underweight" rating in a report on Tuesday. Evercore reaffirmed an "outperform" rating and set a $185.00 price target on shares of Toll Brothers in a research report on Thursday, May 21st. Royal Bank Of Canada reiterated an "outperform" rating and set a $158.00 price objective on shares of Toll Brothers in a report on Thursday, June 11th. Finally, BTIG Research assumed coverage on Toll Brothers in a research report 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 given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Toll Brothers presently has an average rating of "Moderate Buy" and a consensus price target of $164.88.

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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