Toll Brothers Inc. $TOL Shares Purchased by Caisse de depot et placement du Quebec

Key Points

• Caisse de dépôt et placement du Québec increased its Toll Brothers stake by 122.9% in the second quarter, bringing its holdings to 282,814 shares valued at about $46.6 million. Institutional investors collectively own 91.76% of the company.
• Toll Brothers beat quarterly expectations with $2.97 in EPS and $2.66 billion in revenue, but revenue fell 9.7% year over year and earnings declined from $3.73 per share in the prior-year period.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $166.67 versus a recent share price of $145.05, while insider selling and the stock’s position below its 50-day moving average present cautionary signals.

Caisse de depot et placement du Quebec boosted its holdings in Toll Brothers Inc. (NYSE:TOL - Free Report) by 122.9% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 282,814 shares of the construction company's stock after acquiring an additional 155,910 shares during the quarter. Caisse de depot et placement du Quebec owned about 0.30% of Toll Brothers worth $46,594,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. Sivia Capital Partners LLC purchased a new stake in shares of Toll Brothers during the 2nd quarter worth $705,000. Brown Advisory Inc. increased 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 purchasing an additional 186 shares in the last quarter. NewEdge Advisors LLC lifted its stake in shares of Toll Brothers by 5.8% in the second quarter. NewEdge Advisors LLC now owns 6,203 shares of the construction company's stock valued at $708,000 after purchasing an additional 340 shares during the period. Sei Investments Co. lifted its stake in shares of Toll Brothers by 164.9% in the second quarter. Sei Investments Co. now owns 38,556 shares of the construction company's stock valued at $4,400,000 after purchasing an additional 24,001 shares during the period. Finally, Treasurer of the State of North Carolina boosted its holdings in Toll Brothers by 1.5% during the second 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 in the last quarter. Institutional investors and hedge funds own 91.76% of the company's stock.

Toll Brothers Price Performance

Shares of NYSE:TOL opened at $145.05 on Friday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.55 and a current ratio of 4.53. The business's fifty day moving average price is $151.65 and its two-hundred day moving average price is $146.38. The stock has a market cap of $13.56 billion, a PE ratio of 11.64, a price-to-earnings-growth ratio of 1.21 and a beta of 1.35. Toll Brothers Inc. has a one year low of $123.14 and a one year high of $168.36.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The construction company reported $2.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.93 by $0.04. The business had revenue of $2.66 billion for the quarter, compared to the consensus estimate of $2.62 billion. Toll Brothers had a return on equity of 14.21% and a net margin of 11.14%.The business's revenue was down 9.7% on a year-over-year basis. During the same period in the prior year, the business earned $3.73 earnings per share. On average, analysts forecast that Toll Brothers Inc. will post 12.81 EPS for the current fiscal year.

Toll Brothers Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a $0.26 dividend. The ex-dividend date was Friday, July 10th. This represents a $1.04 annualized dividend and a yield of 0.7%. Toll Brothers's payout ratio is 8.35%.

Analyst Ratings Changes

A number of research analysts have issued reports on TOL shares. BTIG Research initiated coverage on shares of Toll Brothers in a report on Tuesday, June 9th. They issued a "buy" rating for the company. Argus set a $170.00 price target on Toll Brothers in a research note on Tuesday, June 2nd. Truist Financial upped their price target on Toll Brothers from $165.00 to $170.00 and gave the stock a "buy" rating in a report on Thursday, August 20th. Keefe, Bruyette & Woods raised Toll Brothers from a "market perform" rating to an "outperform" rating and raised their price objective for the company from $158.00 to $161.00 in a research note on Tuesday, June 9th. Finally, Barclays lifted their price objective on Toll Brothers from $115.00 to $122.00 and gave the stock an "underweight" rating in a report on Tuesday, July 14th. Fifteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $166.67.

Toll Brothers News Roundup

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Toll Brothers continues to expand in attractive luxury housing markets, announcing new communities near Dallas, in California, Las Vegas, and Harrison, New York. The developments increase its future selling opportunities and reinforce the company’s premium-market positioning. New Dallas-area community
• Positive Sentiment: The Harrison, New York, project is expected to launch this fall with luxury townhomes priced from approximately $1.6 million, while the Cumming, Georgia, model home is now available for purchase. These announcements could support future orders and revenue, although they are not immediate financial catalysts. Harrison luxury townhome community
• Neutral Sentiment: Recent developments in San Bruno, California, Las Vegas, and other markets demonstrate ongoing geographic growth, but the releases provided no pricing, order, margin, or earnings guidance. Their near-term impact on TOL’s valuation is therefore limited. Las Vegas community announcement
• Negative Sentiment: An analysis argues that Toll Brothers’ earnings per share improved without growth in total earnings, implying that share repurchases or a lower share count—not stronger profitability—supported per-share results. This is concerning because quarterly revenue fell about 9.7% year over year and earnings declined from the prior-year period. Toll Brothers earnings-per-share analysis
• Negative Sentiment: Recent insider activity is also a cautionary signal: company insiders made four reported open-market sales over the past six months and no purchases. The stock is trading below its 50-day moving average and close to its 200-day average, indicating continued investor pressure.

Insiders Place Their Bets

In other news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the firm's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $156.58, for a total transaction of $12,206,507.06. Following the sale, the chairman owned 321,256 shares in the company, valued at $50,302,264.48. This trade represents a 19.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Robert Parahus sold 7,500 shares of Toll Brothers stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $149.66, for a total value of $1,122,450.00. Following the completion of the sale, the chief operating officer directly owned 23,457 shares of the company's stock, valued at approximately $3,510,574.62. This represents a 24.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.37% of the company's stock.

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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