Zacks Research Forecasts Weaker Earnings for Toll Brothers

Key Points

• Zacks Research has reduced its FY2026 earnings per share estimate for Toll Brothers from $14.84 to $13.72.
• Despite the downgrade, the company has received various upgraded price targets and ratings from analysts, including a maintained "outperform" rating by Wedbush.
• Toll Brothers recently reported quarterly earnings of $3.73 EPS, surpassing the consensus estimate by $0.14, with a year-over-year revenue increase of 8.0% to $2.95 billion.

Toll Brothers Inc. (NYSE:TOL - Free Report) - Investment analysts at Zacks Research dropped their FY2026 earnings estimates for Toll Brothers in a report released on Tuesday, September 2nd. Zacks Research analyst Team now forecasts that the construction company will post earnings of $13.72 per share for the year, down from their prior forecast of $14.84. The consensus estimate for Toll Brothers' current full-year earnings is $13.83 per share. Zacks Research also issued estimates for Toll Brothers' Q4 2026 earnings at $4.68 EPS and FY2027 earnings at $14.38 EPS.

Several other equities research analysts have also recently issued reports on the stock. Keefe, Bruyette & Woods raised their target price on shares of Toll Brothers from $143.00 to $145.00 and gave the stock a "market perform" rating in a research report on Thursday, August 28th. Seaport Res Ptn raised shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Wedbush reaffirmed an "outperform" rating and set a $165.00 price target on shares of Toll Brothers in a research report on Friday. Bank of America lifted their price target on shares of Toll Brothers from $132.00 to $145.00 and gave the company a "buy" rating in a research report on Tuesday, August 19th. Finally, UBS Group reaffirmed a "buy" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $149.07.

Toll Brothers Trading Up 1.3%

Shares of NYSE TOL traded up $1.83 during midday trading on Friday, reaching $147.24. 2,739,985 shares of the stock were exchanged, compared to its average volume of 1,776,144. The company has a market capitalization of $14.19 billion, a P/E ratio of 10.82, a P/E/G ratio of 0.97 and a beta of 1.33. Toll Brothers has a 52-week low of $86.67 and a 52-week high of $169.52. The company has a current ratio of 4.38, a quick ratio of 0.51 and a debt-to-equity ratio of 0.36. The stock has a 50 day moving average price of $126.77 and a 200-day moving average price of $112.44.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings results on Tuesday, August 19th. The construction company reported $3.73 EPS for the quarter, topping 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 net margin of 12.64% and a return on equity of 17.42%. The company's quarterly revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.60 earnings per share.

Toll Brothers Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were paid 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 was Friday, July 11th. Toll Brothers's payout ratio is 7.35%.

Insiders Place Their Bets

In related news, Director Stephen F. East sold 2,500 shares of Toll Brothers stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $115.33, for a total value of $288,325.00. Following the completion of the sale, the director owned 12,787 shares in the company, valued at approximately $1,474,724.71. The trade was a 16.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Robert Parahus sold 9,831 shares of Toll Brothers stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $130.84, for a total transaction of $1,286,288.04. Following the completion of the sale, the chief operating officer owned 19,692 shares of the company's stock, valued at approximately $2,576,501.28. This trade represents a 33.30% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 38,601 shares of company stock valued at $5,183,374. 1.54% of the stock is owned by insiders.

Institutional Trading of Toll Brothers

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Osaic Holdings Inc. increased its stake in shares of Toll Brothers by 69.3% in the second quarter. Osaic Holdings Inc. now owns 45,742 shares of the construction company's stock worth $5,091,000 after buying an additional 18,721 shares during the last quarter. Orion Porfolio Solutions LLC increased its stake in shares of Toll Brothers by 134.0% in the second quarter. Orion Porfolio Solutions LLC now owns 7,498 shares of the construction company's stock worth $856,000 after buying an additional 4,294 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in shares of Toll Brothers by 83.3% in the second quarter. Thrivent Financial for Lutherans now owns 47,024 shares of the construction company's stock worth $5,367,000 after buying an additional 21,373 shares during the last quarter. Advisory Services Network LLC increased its stake in Toll Brothers by 4.2% during the second quarter. Advisory Services Network LLC now owns 29,676 shares of the construction company's stock valued at $3,512,000 after purchasing an additional 1,200 shares during the last quarter. Finally, Old North State Trust LLC increased its stake in Toll Brothers by 26.9% during the second quarter. Old North State Trust LLC now owns 6,580 shares of the construction company's stock valued at $751,000 after purchasing an additional 1,394 shares during the last quarter. Institutional investors own 91.76% of the company's stock.

Toll Brothers Company 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.