Strathmore Capital Advisors Inc. Takes $364,000 Position in Toll Brothers Inc. $TOL

Key Points

• Strathmore Capital Advisors Inc. invested approximately $364,000 in Toll Brothers Inc. by acquiring 3,000 shares in the 2nd quarter, reflecting increasing interest from institutional investors.
• Recent transactions show that insiders, including COO and a director, have sold a significant number of shares, indicating a decrease in their ownership stake.
• Toll Brothers has reported strong quarterly earnings, surpassing estimates with $3.73 earnings per share and revenue of $2.95 billion, alongside a dividend announcement with a 0.7% yield.

Strathmore Capital Advisors Inc. purchased a new position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 3,000 shares of the construction company's stock, valued at approximately $364,000.

A number of other hedge funds have also bought and sold shares of TOL. Sound Income Strategies LLC increased its position in Toll Brothers by 84.2% during the first quarter. Sound Income Strategies LLC now owns 245 shares of the construction company's stock worth $26,000 after acquiring an additional 112 shares during the period. Brooklyn Investment Group increased its position in Toll Brothers by 52.8% during the first quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock worth $29,000 after acquiring an additional 94 shares during the period. Larson Financial Group LLC increased its position in Toll Brothers by 152.6% during the first quarter. Larson Financial Group LLC now owns 293 shares of the construction company's stock worth $31,000 after acquiring an additional 177 shares during the period. MassMutual Private Wealth & Trust FSB grew its stake in Toll Brothers by 128.2% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 324 shares of the construction company's stock worth $37,000 after buying an additional 182 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Toll Brothers by 218.4% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 363 shares of the construction company's stock worth $38,000 after buying an additional 249 shares in the last quarter. 91.76% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, Director Paul E. Shapiro sold 3,812 shares of the business's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $147.65, for a total value of $562,841.80. Following the transaction, the director directly owned 118,753 shares of the company's stock, valued at approximately $17,533,880.45. The trade was a 3.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 in the company, valued at $1,474,724.71. This trade represents a 16.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 42,413 shares of company stock worth $5,746,216 in the last ninety days. Corporate insiders own 1.54% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on TOL shares. Wells Fargo & Company increased their price objective on shares of 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 note on Wednesday, July 23rd. Wedbush reiterated an "outperform" rating and set a $165.00 price objective on shares of Toll Brothers in a research note on Thursday. Keefe, Bruyette & Woods increased their price objective on shares of Toll Brothers from $143.00 to $145.00 and gave the stock a "market perform" rating in a research note on Thursday, August 28th. Finally, Bank of America increased their price objective on shares of Toll Brothers from $150.00 to $155.00 and gave the stock a "buy" rating in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, eight have issued 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, the stock has an average rating of "Moderate Buy" and a consensus target price of $149.79.

Toll Brothers Stock Down 0.2%

TOL stock traded down $0.28 during midday trading on Friday, reaching $139.56. 3,055,508 shares of the company's stock traded hands, compared to its average volume of 1,626,893. The company has a quick ratio of 0.51, a current ratio of 4.38 and a debt-to-equity ratio of 0.36. The company has a market cap of $13.45 billion, a price-to-earnings ratio of 10.25, a P/E/G ratio of 0.92 and a beta of 1.33. The firm's fifty day moving average price is $131.63 and its 200-day moving average price is $114.65. Toll Brothers Inc. has a 52 week low of $86.67 and a 52 week high of $169.52.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its quarterly earnings data on Tuesday, August 19th. The construction company reported $3.73 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.59 by $0.14. The firm had revenue of $2.95 billion for the quarter, compared to the consensus estimate of $2.86 billion. Toll Brothers had a net margin of 12.64% and a return on equity of 17.42%. The business's revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.60 EPS. As a group, sell-side analysts forecast that Toll Brothers Inc. will post 13.83 earnings per share for the current fiscal year.

Toll Brothers Announces Dividend

The business also recently declared 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. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Friday, October 10th. Toll Brothers's payout ratio is 7.35%.

About Toll Brothers

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.