Toll Brothers (NYSE:TOL) Share Price Breaks Above 200-Day Moving Average - Here's What Happened

Key Points

• Toll Brothers shares rose 3.1% and briefly traded above their 200-day moving average of $144.18, reaching $144.41.
• Analysts remain broadly bullish, with a consensus rating of “Moderate Buy” and an average price target of $166.67, despite target reductions from Citigroup and Royal Bank of Canada.
• The company exceeded quarterly earnings and revenue estimates, but revenue fell 9.7% year over year; Toll Brothers also paid a quarterly dividend of $0.26, yielding approximately 0.7%.

Shares of Toll Brothers Inc. (NYSE:TOL - Get Free Report) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $144.18 and traded as high as $144.41. Toll Brothers shares last traded at $144.2430, with a volume of 951,970 shares traded.

Analyst Upgrades and Downgrades

TOL has been the topic of a number of recent analyst reports. Citigroup cut their price target on shares of Toll Brothers from $179.00 to $168.00 and set a "buy" rating on the stock in a research note on Thursday, October 15th. Royal Bank Of Canada reduced their target price on shares of Toll Brothers from $158.00 to $148.00 and set an "outperform" rating on the stock in a report on Thursday, October 15th. Weiss Ratings raised shares of Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Melius Research began coverage on Toll Brothers in a research note on Tuesday, October 6th. They issued a "buy" rating and a $179.00 target price for the company. Finally, Morgan Stanley assumed coverage on Toll Brothers in a report on Thursday, October 1st. They issued an "overweight" rating and a $159.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $166.67.

Toll Brothers Stock Up 3.1%

The firm's 50 day simple moving average is $137.88 and its 200 day simple moving average is $144.18. The company has a market cap of $13.29 billion, a price-to-earnings ratio of 11.58, a price-to-earnings-growth ratio of 1.13 and a beta of 1.31. The company has a quick ratio of 0.55, a current ratio of 4.53 and a debt-to-equity ratio of 0.32.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its quarterly earnings data on Tuesday, August 18th. The construction company reported $2.97 earnings per share for the quarter, topping the consensus estimate of $2.93 by $0.04. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. The business had revenue of $2.66 billion during the quarter, compared to the consensus estimate of $2.62 billion. During the same quarter in the prior year, the company posted $3.73 earnings per share. The company's quarterly revenue was down 9.7% compared to the same quarter last year. Sell-side analysts anticipate that Toll Brothers Inc. will post 12.80 EPS for the current fiscal year.

Toll Brothers Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 9th were paid a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, October 9th. Toll Brothers's dividend payout ratio is currently 8.35%.

Insider Buying and Selling at Toll Brothers

In other Toll Brothers news, Director Stephen East sold 800 shares of the company's stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $135.99, for a total value of $108,792.00. Following the transaction, the director directly owned 12,642 shares of the company's stock, valued at $1,719,185.58. This represents a 5.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 1.37% of the company's stock.

Institutional Trading of Toll Brothers

Several large investors have recently made changes to their positions in the stock. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Toll Brothers during the second quarter worth approximately $4,515,000. Mariner Investment Group LLC acquired a new position in Toll Brothers during the second quarter valued at approximately $1,648,000. Meeder Advisory Services Inc. acquired a new position in Toll Brothers during the second quarter valued at approximately $862,000. Ceredex Value Advisors LLC bought a new position in shares of Toll Brothers in the second quarter valued at approximately $37,012,000. Finally, Amundi raised its position in shares of Toll Brothers by 138.4% in the second quarter. Amundi now owns 174,655 shares of the construction company's stock valued at $28,774,000 after purchasing an additional 101,405 shares during the period. Institutional investors own 91.76% of the company's stock.

About Toll Brothers

Toll Brothers, Inc is a luxury homebuilding company that designs, builds, markets and sells residential properties in the United States. Its portfolio includes single-family detached homes, townhomes, condominiums and luxury residences, along with active-adult communities and urban high-rise developments in select markets.

The company also provides related services through businesses involved in mortgage lending, title insurance and settlement services. Toll Brothers serves a range of buyers, including first-time, move-up, luxury and active-adult home purchasers, and offers customization options through its design studios and other customer-service operations.

Founded in 1967 by Robert I.

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