Royal Bank of Canada Raises Position in Toll Brothers Inc. $TOL

Key Points

• Royal Bank of Canada increased its stake in Toll Brothers Inc. by 13.1%, owning 183,935 shares valued at approximately $19.4 million.
• CEO Douglas C. Jr. Yearley sold 25,000 shares at $138.26 per share, resulting in an 8.04% decrease in his holdings.
• Analysts have given Toll Brothers an average rating of "Moderate Buy", with a consensus price target of $149.07 per share.

Royal Bank of Canada grew its holdings in Toll Brothers Inc. (NYSE:TOL - Free Report) by 13.1% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 183,935 shares of the construction company's stock after buying an additional 21,262 shares during the quarter. Royal Bank of Canada owned about 0.18% of Toll Brothers worth $19,421,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Sound Income Strategies LLC lifted its holdings in shares of Toll Brothers by 84.2% in the 1st quarter. Sound Income Strategies LLC now owns 245 shares of the construction company's stock valued at $26,000 after buying an additional 112 shares during the period. Brooklyn Investment Group lifted its holdings in shares of Toll Brothers by 52.8% in the 1st quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock valued at $29,000 after buying an additional 94 shares during the period. Larson Financial Group LLC lifted its holdings in shares of Toll Brothers by 152.6% in the 1st quarter. Larson Financial Group LLC now owns 293 shares of the construction company's stock valued at $31,000 after buying an additional 177 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings 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 purchasing an additional 249 shares during the last quarter. Finally, Operose Advisors LLC acquired a new position in Toll Brothers during the first quarter worth $42,000. 91.76% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on TOL. Citigroup lifted their price objective on Toll Brothers from $134.00 to $138.00 and gave the stock a "neutral" rating in a report on Monday, August 25th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $160.00 price objective (up from $130.00) on shares of Toll Brothers in a report on Monday, August 25th. Wells Fargo & Company lifted their price objective on Toll Brothers from $140.00 to $150.00 and gave the stock an "overweight" rating in a report on Monday, August 18th. Evercore ISI reiterated an "outperform" rating and issued a $169.00 price target (up from $167.00) on shares of Toll Brothers in a research report on Thursday, May 22nd. Finally, UBS Group reiterated a "buy" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $149.07.

Toll Brothers Price Performance

TOL stock traded down $3.47 during trading on Friday, hitting $143.48. The stock had a trading volume of 975,257 shares, compared to its average volume of 1,807,067. The company's 50 day moving average price is $129.56 and its two-hundred day moving average price is $113.58. Toll Brothers Inc. has a 1-year low of $86.67 and a 1-year high of $169.52. The stock has a market cap of $13.83 billion, a price-to-earnings ratio of 10.54, a price-to-earnings-growth ratio of 0.97 and a beta of 1.33. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.51 and a current ratio of 4.38.

Toll Brothers (NYSE:TOL - Get Free Report) last announced its quarterly earnings data on Tuesday, August 19th. The construction company reported $3.73 EPS for the quarter, beating analysts' consensus estimates of $3.59 by $0.14. The business 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%.The business's revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.60 earnings per share. On average, sell-side analysts forecast that Toll Brothers Inc. will post 13.83 EPS for the current fiscal year.

Toll Brothers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, July 11th were given a $0.25 dividend. The ex-dividend date of this dividend was Friday, July 11th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. Toll Brothers's payout ratio is currently 7.35%.

Insiders Place Their Bets

In other Toll Brothers news, Director Christine Garvey sold 770 shares of the company's stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $119.82, for a total transaction of $92,261.40. Following the completion of the sale, the director directly owned 11,590 shares in the company, valued at $1,388,713.80. This represents a 6.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Douglas C. Jr. Yearley sold 25,000 shares of the company's stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $138.26, for a total value of $3,456,500.00. Following the sale, the chief executive officer owned 286,117 shares of the company's stock, valued at $39,558,536.42. This represents a 8.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 42,413 shares of company stock valued at $5,746,216. 1.54% of the stock is currently owned by company insiders.

Toll Brothers 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.