Toll Brothers Inc. (NYSE:TOL) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst consensus: Toll Brothers has a Moderate Buy consensus from 19 brokerages (12 buys, 5 holds, 1 sell, 1 strong buy) with an average 12‑month target of $164.44.
• Quarterly beat and dividend increase: The company reported $2.19 EPS (vs. $2.05 expected) and $2.15B revenue (up 15.4% y/y), and raised its quarterly dividend to $0.26 ($1.04 annual, ~0.7% yield).
• Insider activity and ownership: CEO Douglas Yearley sold 45,116 shares (~$7.24M), insiders own 1.37% of the stock, while institutional investors hold 91.76%.

Toll Brothers Inc. (NYSE:TOL - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nineteen brokerages that are currently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, five have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $164.4375.

Several research firms recently weighed in on TOL. JPMorgan Chase & Co. raised their price objective on Toll Brothers from $141.00 to $143.00 and gave the company an "overweight" rating in a report on Monday, February 23rd. Citizens Jmp reissued a "market outperform" rating and set a $175.00 price objective on shares of Toll Brothers in a report on Wednesday, February 18th. Keefe, Bruyette & Woods raised their target price on Toll Brothers from $143.00 to $170.00 and gave the stock a "market perform" rating in a research report on Wednesday, February 25th. Barclays lowered their target price on Toll Brothers from $116.00 to $115.00 and set an "underweight" rating for the company in a research report on Wednesday, April 8th. Finally, Truist Financial lowered their target price on Toll Brothers from $190.00 to $170.00 and set a "buy" rating for the company in a research report on Thursday, April 16th.

Toll Brothers Trading Down 1.7%

NYSE TOL opened at $146.75 on Friday. The company has a quick ratio of 0.62, a current ratio of 4.57 and a debt-to-equity ratio of 0.32. Toll Brothers has a twelve month low of $98.14 and a twelve month high of $168.36. The company has a market cap of $13.90 billion, a price-to-earnings ratio of 10.48, a price-to-earnings-growth ratio of 1.17 and a beta of 1.49. The business's fifty day moving average is $145.03 and its 200 day moving average is $141.35.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings data on Tuesday, February 17th. The construction company reported $2.19 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.14. Toll Brothers had a return on equity of 16.83% and a net margin of 12.26%.The company had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $1.86 billion. During the same quarter last year, the business posted $1.75 EPS. Toll Brothers's revenue for the quarter was up 15.4% on a year-over-year basis. As a group, sell-side analysts expect that Toll Brothers will post 12.67 EPS for the current fiscal year.

Toll Brothers Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, April 24th. Investors of record on Friday, April 10th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Friday, April 10th. This represents a $1.04 annualized dividend and a yield of 0.7%. This is an increase from Toll Brothers's previous quarterly dividend of $0.25. Toll Brothers's dividend payout ratio is 7.43%.

Insider Buying and Selling at Toll Brothers

In related news, Director Stephen F. East sold 1,000 shares of the firm's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $139.70, for a total transaction of $139,700.00. Following the completion of the transaction, the director directly owned 13,442 shares of the company's stock, valued at $1,877,847.40. This trade represents a 6.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of the firm's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $160.42, for a total value of $7,237,508.72. Following the transaction, the chief executive officer directly owned 321,256 shares of the company's stock, valued at approximately $51,535,887.52. This represents a 12.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.37% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TOL. Western Wealth Management LLC boosted its holdings in shares of Toll Brothers by 2.6% during the fourth quarter. Western Wealth Management LLC now owns 2,658 shares of the construction company's stock worth $359,000 after purchasing an additional 68 shares during the period. Root Financial Partners LLC boosted its holdings in shares of Toll Brothers by 21.9% during the fourth quarter. Root Financial Partners LLC now owns 389 shares of the construction company's stock worth $53,000 after purchasing an additional 70 shares during the period. Merit Financial Group LLC boosted its holdings in shares of Toll Brothers by 0.4% during the fourth quarter. Merit Financial Group LLC now owns 20,568 shares of the construction company's stock worth $2,781,000 after purchasing an additional 72 shares during the period. IFP Advisors Inc boosted its holdings in shares of Toll Brothers by 2.4% during the fourth quarter. IFP Advisors Inc now owns 3,200 shares of the construction company's stock worth $433,000 after purchasing an additional 74 shares during the period. Finally, Hilton Head Capital Partners LLC boosted its holdings in shares of Toll Brothers by 65.5% during the first quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company's stock worth $26,000 after purchasing an additional 74 shares during the period. 91.76% of the stock is owned by institutional investors.

Toll Brothers Company Profile

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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