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

Key Points

• Toll Brothers has a consensus analyst rating of “Moderate Buy”, with 12 buy ratings, 5 holds, 1 sell, and 1 strong buy across 19 covering firms. The average 12-month price target is about $164.44.
• The company recently beat quarterly expectations, reporting EPS of $2.72 versus estimates of about $2.58 and revenue of $2.53 billion versus $2.42 billion expected. Even so, revenue fell 7.6% year over year and EPS was below last year’s $3.50.
• Toll Brothers also raised its quarterly dividend to $0.26 per share, up from $0.25 previously, which works out to an annualized yield of about 0.8%. Insider selling was also noted, including a sizable share sale by CEO Douglas C. Jr. Yearley.

Shares of Toll Brothers Inc. (NYSE:TOL - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the nineteen ratings firms that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, five have given a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among brokers that have covered the stock in the last year is $164.4375.

Several research analysts have recently commented on the company. JPMorgan Chase & Co. raised their price target on Toll Brothers from $141.00 to $143.00 and gave the stock an "overweight" rating in a research report on Monday, February 23rd. Citizens Jmp reiterated a "market outperform" rating and issued a $175.00 target price on shares of Toll Brothers in a report on Wednesday, February 18th. Keefe, Bruyette & Woods lifted their target price on Toll Brothers from $143.00 to $170.00 and gave the company a "market perform" rating in a report on Wednesday, February 25th. Evercore upgraded Toll Brothers from an "in-line" rating to an "outperform" rating and set a $176.00 target price for the company in a report on Monday, April 13th. Finally, Royal Bank Of Canada lifted their target price on Toll Brothers from $144.00 to $161.00 and gave the company an "outperform" rating in a report on Thursday, February 19th.

Toll Brothers Trading Down 2.5%

TOL opened at $123.85 on Wednesday. Toll Brothers has a 52 week low of $100.92 and a 52 week high of $168.36. The business has a fifty day simple moving average of $138.55 and a 200-day simple moving average of $141.62. The firm has a market cap of $11.73 billion, a P/E ratio of 8.85, a P/E/G ratio of 0.99 and a beta of 1.39. 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 (NYSE:TOL - Get Free Report) last released its quarterly earnings results on Tuesday, May 19th. The construction company reported $2.72 EPS for the quarter, topping the consensus estimate of $2.58 by $0.14. Toll Brothers had a return on equity of 16.83% and a net margin of 12.26%.The business had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.42 billion. During the same period last year, the business posted $3.50 earnings per share. The company's quarterly revenue was down 7.6% on a year-over-year basis. On average, equities analysts expect that Toll Brothers will post 12.65 earnings per share for the current 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 issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.8%. This is a boost from Toll Brothers's previous quarterly dividend of $0.25. The ex-dividend date was Friday, April 10th. Toll Brothers's dividend payout ratio (DPR) is 7.43%.

More Toll Brothers News

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Toll Brothers beat Wall Street estimates for both earnings and revenue, reporting $2.72 per share versus consensus of about $2.57-$2.58 and revenue of $2.53 billion versus $2.42 billion expected. Article Title
• Positive Sentiment: The Wall Street Journal said the company’s revenue and profit declined less than expected, helped by an average delivered home price above $1 million, which supports luxury-home pricing power. Article Title
• Positive Sentiment: Industry commentary suggested luxury homes are still selling in a tough market, a potentially favorable sign for Toll Brothers’ margins and demand resilience. Article Title
• Neutral Sentiment: Analysts were looking for quarterly EPS of about $2.58 and revenue of $2.42 billion, so the report came in ahead of expectations but not by a wide enough margin to fully offset broader concerns. Article Title
• Neutral Sentiment: Recent housing-data coverage pointed to improving pending home sales, which may help sentiment for homebuilders, though the impact on Toll Brothers is still uncertain. Article Title
• Negative Sentiment: Even with the earnings beat, revenue fell 7.6% from a year ago and EPS was below last year’s $3.50, highlighting a year-over-year slowdown that may be pressuring the stock. Article Title

Insiders Place Their Bets

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

Institutional Trading of Toll Brothers

Institutional investors have recently bought and sold shares of the business. Hilton Head Capital Partners LLC lifted its holdings in Toll Brothers by 65.5% during the 1st quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company's stock worth $26,000 after buying an additional 74 shares during the last quarter. Wiser Advisor Group LLC purchased a new stake in Toll Brothers during the 3rd quarter worth about $27,000. Ramirez Asset Management Inc. purchased a new stake in Toll Brothers during the 3rd quarter worth about $28,000. Pinnacle Holdings LLC purchased a new stake in Toll Brothers during the 4th quarter worth about $27,000. Finally, Abich Financial Wealth Management LLC purchased a new stake in Toll Brothers during the 3rd quarter worth about $28,000. 91.76% of the stock is owned by hedge funds and other institutional investors.

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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