Teacher Retirement System of Texas Cuts Holdings in Toll Brothers Inc. $TOL

Key Points

• Teacher Retirement System of Texas cut its stake in Toll Brothers by 12.8% in Q4 to 64,352 shares (about $8.7M), even as major institutions like Capital World Investors and Greenhaven increased positions; institutional ownership stands at 91.76%.
• Toll Brothers reported a quarterly beat with $2.19 EPS vs. $2.05 expected and revenue of $2.15B (+15.4% YoY), and raised its quarterly dividend to $0.26 ($1.04 annual, 0.7% yield).
• Significant insider selling occurred (CEO sold 45,116 shares), while analysts remain broadly positive with a consensus rating of “Moderate Buy” and a consensus price target of $164.44, amid mixed individual revisions.

Teacher Retirement System of Texas decreased its position in Toll Brothers Inc. (NYSE:TOL - Free Report) by 12.8% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 64,352 shares of the construction company's stock after selling 9,418 shares during the period. Teacher Retirement System of Texas owned about 0.07% of Toll Brothers worth $8,702,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Greenhaven Associates Inc. increased its holdings in Toll Brothers by 0.4% in the fourth quarter. Greenhaven Associates Inc. now owns 5,603,187 shares of the construction company's stock valued at $757,663,000 after buying an additional 22,218 shares in the last quarter. Capital World Investors grew its position in shares of Toll Brothers by 51.5% in the third quarter. Capital World Investors now owns 5,187,673 shares of the construction company's stock valued at $716,625,000 after purchasing an additional 1,763,211 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Toll Brothers by 1.4% in the third quarter. Dimensional Fund Advisors LP now owns 2,901,015 shares of the construction company's stock valued at $400,745,000 after purchasing an additional 39,987 shares during the period. Holocene Advisors LP grew its position in shares of Toll Brothers by 78.0% in the third quarter. Holocene Advisors LP now owns 2,224,289 shares of the construction company's stock valued at $307,263,000 after purchasing an additional 974,567 shares during the period. Finally, Bamco Inc. NY grew its position in shares of Toll Brothers by 2.0% in the third quarter. Bamco Inc. NY now owns 1,156,885 shares of the construction company's stock valued at $159,812,000 after purchasing an additional 22,205 shares during the period. Hedge funds and other institutional investors own 91.76% of the company's stock.

Toll Brothers Stock Performance

NYSE:TOL opened at $146.75 on Friday. The company has a debt-to-equity ratio of 0.32, a current ratio of 4.57 and a quick ratio of 0.62. The firm has a market capitalization of $13.90 billion, a price-to-earnings ratio of 10.48, a PEG ratio of 1.17 and a beta of 1.49. The company's 50-day moving average is $145.03 and its two-hundred day moving average is $141.41. Toll Brothers Inc. has a 1-year low of $98.14 and a 1-year high of $168.36.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its earnings results on Tuesday, February 17th. The construction company reported $2.19 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.14. The company had revenue of $2.15 billion for the quarter, compared to analyst estimates of $1.86 billion. Toll Brothers had a net margin of 12.26% and a return on equity of 16.83%. Toll Brothers's revenue was up 15.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.75 EPS. Analysts forecast that Toll Brothers Inc. will post 12.67 EPS for the current year.

Toll Brothers Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 24th. Stockholders of record on Friday, April 10th were issued a $0.26 dividend. The ex-dividend date was Friday, April 10th. This represents a $1.04 annualized dividend 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 (DPR) is currently 7.43%.

Insider Activity at Toll Brothers

In other news, Director Stephen F. East sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $139.70, for a total value of $139,700.00. Following the transaction, the director directly owned 13,442 shares in the company, valued at approximately $1,877,847.40. This represents a 6.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $160.42, for a total transaction of $7,237,508.72. Following the completion of the transaction, the chief executive officer owned 321,256 shares in the company, valued at approximately $51,535,887.52. This represents a 12.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.37% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on TOL shares. Weiss Ratings upgraded shares of Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, February 10th. Barclays dropped their target price on shares of Toll Brothers from $116.00 to $115.00 and set an "underweight" rating on the stock in a research report on Wednesday, April 8th. Seaport Research Partners reiterated a "neutral" rating on shares of Toll Brothers in a research report on Tuesday, April 7th. Citigroup boosted their price target on shares of Toll Brothers from $141.00 to $162.00 and gave the stock a "neutral" rating in a research report on Thursday, February 26th. Finally, Wells Fargo & Company boosted their price target on shares of Toll Brothers from $170.00 to $185.00 and gave the stock an "overweight" rating in a research report on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $164.44.

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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