Insider Selling: Toll Brothers (NYSE:TOL) Chairman Sells 77,957 Shares of Stock

Key Points

• Insider sale: Toll Brothers Chairman Douglas Jr. Yearley sold 77,957 shares on June 18 at an average price of $156.58, totaling about $12.2 million. After the transaction, he still held 321,256 shares, a 19.53% reduction in his stake.
• Recent business performance: Toll Brothers reported quarterly EPS of $2.72, beating analyst expectations of $2.58, and revenue of $2.53 billion versus estimates of $2.42 billion. However, revenue was still down 7.6% from the same quarter last year.
• Market and analyst backdrop: The stock rose on the day to $155.66, near its 52-week high of $168.36, and analysts currently rate it a Moderate Buy with an average target price of $163.56. The company also announced a quarterly dividend of $0.26 per share, payable July 24.

Toll Brothers Inc. (NYSE:TOL - Get Free Report) Chairman Douglas Jr. Yearley sold 77,957 shares of the firm's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $156.58, for a total transaction of $12,206,507.06. Following the completion of the sale, the chairman owned 321,256 shares of the company's stock, valued at $50,302,264.48. This trade represents a 19.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Toll Brothers Price Performance

TOL stock traded up $6.00 during trading on Thursday, reaching $155.66. 1,831,416 shares of the company were exchanged, compared to its average volume of 1,217,796. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.59 and a current ratio of 4.67. The stock's 50 day moving average price is $139.86 and its 200 day moving average price is $142.78. Toll Brothers Inc. has a 52-week low of $105.65 and a 52-week high of $168.36. The company has a market cap of $14.55 billion, a P/E ratio of 11.77, a PEG ratio of 1.27 and a beta of 1.36.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its earnings results on Tuesday, May 19th. The construction company reported $2.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.58 by $0.14. Toll Brothers had a net margin of 11.66% and a return on equity of 15.47%. The company had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.42 billion. During the same period last year, the company posted $3.50 earnings per share. The firm's quarterly revenue was down 7.6% compared to the same quarter last year. As a group, analysts predict that Toll Brothers Inc. will post 12.68 earnings per share for the current fiscal year.

Toll Brothers Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be paid a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Friday, July 10th. Toll Brothers's dividend payout ratio (DPR) is presently 7.87%.

Analyst Upgrades and Downgrades

Several research firms have weighed in on TOL. Keefe, Bruyette & Woods raised Toll Brothers from a "market perform" rating to an "outperform" rating and upped their target price for the company from $158.00 to $161.00 in a report on Tuesday, June 9th. Seaport Research Partners reaffirmed a "neutral" rating on shares of Toll Brothers in a research note on Tuesday, April 7th. Citizens Jmp reiterated a "market outperform" rating and issued a $175.00 price objective on shares of Toll Brothers in a research report on Wednesday, February 18th. Weiss Ratings cut shares of Toll Brothers from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 22nd. Finally, Wells Fargo & Company raised their target price on shares of Toll Brothers from $170.00 to $185.00 and gave the company an "overweight" rating in a report on Thursday, February 19th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued 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 company currently has an average rating of "Moderate Buy" and an average target price of $163.56.

Institutional Investors Weigh In On Toll Brothers

Several hedge funds have recently modified their holdings of the company. Sivia Capital Partners LLC purchased a new position in shares of Toll Brothers during the second quarter valued at approximately $705,000. Brown Advisory Inc. boosted its position in Toll Brothers by 4.6% during the second quarter. Brown Advisory Inc. now owns 4,212 shares of the construction company's stock worth $481,000 after acquiring an additional 186 shares during the last quarter. NewEdge Advisors LLC boosted its position in Toll Brothers by 5.8% during the second quarter. NewEdge Advisors LLC now owns 6,203 shares of the construction company's stock worth $708,000 after acquiring an additional 340 shares during the last quarter. Sei Investments Co. grew its stake in Toll Brothers by 164.9% in the 2nd quarter. Sei Investments Co. now owns 38,556 shares of the construction company's stock worth $4,400,000 after acquiring an additional 24,001 shares during the period. Finally, Treasurer of the State of North Carolina grew its stake in Toll Brothers by 1.5% in the 2nd quarter. Treasurer of the State of North Carolina now owns 46,208 shares of the construction company's stock worth $5,274,000 after acquiring an additional 700 shares during the period. 91.76% of the stock is owned by institutional investors and hedge funds.

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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