Toll Brothers Inc. $TOL Shares Bought by Capital World Investors

Key Points

• Capital World Investors boosted its stake in Toll Brothers by 51.5% to 5,187,673 shares, a 5.38% ownership worth roughly $716.6 million at the end of the quarter.
• Toll Brothers beat quarterly expectations with EPS of $2.19 versus $2.05 expected and revenue of $2.15 billion (up 15.4% year-over-year), and analysts forecast about $13.83 in EPS for the current year with an average target price of $165.25.
• CEO Douglas C. Jr. Yearley sold 45,116 shares for about $7.24 million, trimming his stake; insiders now own 1.37% of the company while institutional investors hold roughly 91.76%.

Capital World Investors increased its position in shares of Toll Brothers Inc. (NYSE:TOL - Free Report) by 51.5% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,187,673 shares of the construction company's stock after purchasing an additional 1,763,211 shares during the period. Capital World Investors owned 5.38% of Toll Brothers worth $716,625,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in TOL. Kaufman Rossin Wealth LLC lifted its position in shares of Toll Brothers by 2.3% in the 3rd quarter. Kaufman Rossin Wealth LLC now owns 3,859 shares of the construction company's stock valued at $533,000 after acquiring an additional 86 shares in the last quarter. US Bancorp DE lifted its stake in Toll Brothers by 1.5% in the third quarter. US Bancorp DE now owns 6,110 shares of the construction company's stock valued at $844,000 after acquiring an additional 88 shares during the last quarter. Bessemer Group Inc. increased its holdings in shares of Toll Brothers by 5.9% during the 3rd quarter. Bessemer Group Inc. now owns 1,681 shares of the construction company's stock valued at $233,000 after acquiring an additional 93 shares during the last quarter. HM Payson & Co. grew its stake in Toll Brothers by 6.0% in the 3rd quarter. HM Payson & Co. now owns 1,760 shares of the construction company's stock valued at $243,000 after buying an additional 100 shares during the last quarter. Finally, Wedbush Securities Inc. grew its position in shares of Toll Brothers by 4.9% in the third quarter. Wedbush Securities Inc. now owns 2,160 shares of the construction company's stock valued at $298,000 after purchasing an additional 101 shares during the last quarter. 91.76% of the stock is currently owned by institutional investors.

Toll Brothers Trading Down 1.0%

NYSE:TOL opened at $145.71 on Wednesday. The company has a current ratio of 4.57, a quick ratio of 0.62 and a debt-to-equity ratio of 0.32. Toll Brothers Inc. has a 1-year low of $86.67 and a 1-year high of $168.36. The firm has a market capitalization of $13.80 billion, a price-to-earnings ratio of 10.41, a PEG ratio of 1.15 and a beta of 1.45. The business's 50-day moving average price is $149.81 and its two-hundred day moving average price is $141.64.

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 (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.14. The company had revenue of $2.15 billion during the quarter, compared to analyst estimates of $1.86 billion. Toll Brothers had a return on equity of 16.83% and a net margin of 12.26%.The company's revenue for the quarter was up 15.4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.75 EPS. On average, equities analysts expect that Toll Brothers Inc. will post 13.83 earnings per share for the current year.

Toll Brothers Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were given a $0.25 dividend. The ex-dividend date of this dividend was Friday, January 9th. This represents a $1.00 dividend on an annualized basis and a yield of 0.7%. Toll Brothers's dividend payout ratio (DPR) is 7.14%.

Insider Activity at Toll Brothers

In other news, Director Paul E. Shapiro sold 3,965 shares of the company's stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $146.68, for a total value of $581,586.20. Following the transaction, the director owned 118,680 shares of the company's stock, valued at approximately $17,407,982.40. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of the firm'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 transaction, the chief executive officer directly owned 321,256 shares in the company, valued at $51,535,887.52. This represents a 12.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.37% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

TOL has been the subject of a number of research reports. Royal Bank Of Canada raised their price objective on Toll Brothers from $144.00 to $161.00 and gave the stock an "outperform" rating in a research report on Thursday, February 19th. Evercore set a $174.00 price objective on shares of Toll Brothers in a research report on Thursday, February 19th. Barclays reissued an "underweight" rating on shares of Toll Brothers in a research note on Monday, February 23rd. UBS Group boosted their price objective on shares of Toll Brothers from $181.00 to $198.00 and gave the stock a "buy" rating in a research report on Thursday, February 19th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $180.00 price objective (up from $177.00) on shares of Toll Brothers in a report on Thursday, February 19th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $165.25.

About Toll Brothers

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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