Mitchell Capital Management Co. Acquires Shares of 15,285 Toll Brothers Inc. $TOL

Key Points

• Mitchell Capital Management Co. acquired 15,285 shares of Toll Brothers Inc. for approximately $1,787,000, adding to the significant interest from institutional investors who now own 91.76% of the company's stock.
• Toll Brothers reported earnings of $3.73 per share, surpassing estimates by $0.14, with revenues up 8.0% year-over-year to $2.95 billion.
• The company announced a quarterly dividend of $0.25, which will be paid on October 24th, reflecting a 0.8% yield and a payout ratio of 7.35%.

Mitchell Capital Management Co. acquired a new stake in Toll Brothers Inc. (NYSE:TOL - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 15,285 shares of the construction company's stock, valued at approximately $1,787,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Greenhaven Associates Inc. raised its holdings in shares of Toll Brothers by 0.7% during the 2nd quarter. Greenhaven Associates Inc. now owns 5,601,916 shares of the construction company's stock worth $639,347,000 after acquiring an additional 39,334 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Toll Brothers by 21.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,159,289 shares of the construction company's stock worth $227,988,000 after acquiring an additional 375,372 shares during the period. AQR Capital Management LLC raised its holdings in shares of Toll Brothers by 17.1% during the 1st quarter. AQR Capital Management LLC now owns 1,424,689 shares of the construction company's stock worth $146,572,000 after acquiring an additional 208,064 shares during the period. Long Pond Capital LP purchased a new position in shares of Toll Brothers during the 1st quarter worth $117,870,000. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Toll Brothers by 6.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,091,176 shares of the construction company's stock worth $115,217,000 after acquiring an additional 67,156 shares during the period. Hedge funds and other institutional investors own 91.76% of the company's stock.

Insider Transactions at Toll Brothers

In other news, Director Stephen F. East sold 2,500 shares of the business's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $115.33, for a total transaction of $288,325.00. Following the completion of the transaction, the director directly owned 12,787 shares of the company's stock, valued at approximately $1,474,724.71. The trade was a 16.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Robert Parahus sold 9,831 shares of the business's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $130.84, for a total value of $1,286,288.04. Following the transaction, the chief operating officer directly owned 19,692 shares of the company's stock, valued at approximately $2,576,501.28. This represents a 33.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 41,143 shares of company stock valued at $5,593,955. 1.54% of the stock is owned by insiders.

Wall Street Analyst Weigh In

TOL has been the topic of several analyst reports. Evercore ISI reiterated an "in-line" rating and set a $160.00 price target (down previously from $169.00) on shares of Toll Brothers in a report on Tuesday, October 7th. Citigroup lifted their price target on Toll Brothers from $138.00 to $147.00 and gave the stock a "neutral" rating in a report on Wednesday, October 1st. Argus lifted their price target on Toll Brothers from $150.00 to $165.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Raymond James Financial reiterated a "strong-buy" rating and set a $160.00 price target (up previously from $130.00) on shares of Toll Brothers in a report on Monday, August 25th. Finally, Keefe, Bruyette & Woods lifted their price target on Toll Brothers from $143.00 to $145.00 and gave the stock a "market perform" rating in a report on Thursday, August 28th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $149.43.

Toll Brothers Stock Performance

NYSE TOL opened at $127.11 on Monday. The company has a market cap of $12.25 billion, a P/E ratio of 9.34, a P/E/G ratio of 1.51 and a beta of 1.40. The company has a debt-to-equity ratio of 0.36, a current ratio of 4.38 and a quick ratio of 0.51. The stock has a 50-day moving average of $136.36 and a two-hundred day moving average of $117.70. Toll Brothers Inc. has a 1-year low of $86.67 and a 1-year high of $169.52.

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 for the quarter, beating the consensus estimate of $3.59 by $0.14. The company had revenue of $2.95 billion during the quarter, compared to the consensus estimate of $2.86 billion. Toll Brothers had a return on equity of 17.42% and a net margin of 12.64%.Toll Brothers's revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the company posted $3.60 EPS. As a group, analysts anticipate that Toll Brothers Inc. will post 13.83 EPS for the current year.

Toll Brothers Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 10th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Friday, October 10th. Toll Brothers's payout ratio is currently 7.35%.

Toll Brothers Company 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.

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