Toll Brothers Inc. (NYSE:TOL) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Toll Brothers has a consensus analyst rating of “Moderate Buy”, based on coverage from 21 analysts; the average 12-month price target is about $163.56.
• The company recently beat quarterly earnings expectations, reporting $2.72 EPS versus the $2.58 estimate and revenue of $2.53 billion, though sales were still down 7.6% year over year.
• Toll Brothers also announced a quarterly dividend of $0.26 per share and saw notable insider selling, including chairman Douglas C. Jr. Yearley and COO Robert Parahus reducing their holdings.

Shares of Toll Brothers Inc. (NYSE:TOL - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-one analysts that are presently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation, fourteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $163.5625.

A number of research firms have recently commented on TOL. Piper Sandler cut shares of Toll Brothers from an "overweight" rating to a "neutral" rating in a report on Tuesday, June 9th. Oppenheimer cut shares of Toll Brothers from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 9th. Truist Financial dropped their target price on shares of Toll Brothers from $170.00 to $165.00 and set a "buy" rating on the stock in a research note on Thursday, May 21st. Weiss Ratings lowered shares of Toll Brothers from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, May 22nd. Finally, Barclays decreased 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.

Toll Brothers Price Performance

Shares of TOL stock opened at $145.86 on Thursday. The stock has a 50 day moving average price of $143.98 and a 200 day moving average price of $144.68. Toll Brothers has a 52-week low of $113.52 and a 52-week high of $168.36. 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 firm has a market capitalization of $13.63 billion, a P/E ratio of 11.03, a P/E/G ratio of 1.25 and a beta of 1.34.

Toll Brothers (NYSE:TOL - Get Free Report) last announced its quarterly earnings data on Tuesday, May 19th. The construction company reported $2.72 EPS for the quarter, beating the consensus estimate of $2.58 by $0.14. Toll Brothers had a return on equity of 15.47% and a net margin of 11.66%.The company had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.42 billion. During the same quarter in the prior year, the company posted $3.50 EPS. Toll Brothers's quarterly revenue was down 7.6% on a year-over-year basis. As a group, sell-side analysts predict that Toll Brothers will post 12.69 earnings per share for the current year.

Toll Brothers Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be issued a dividend of $0.26 per share. 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%.

Insider Buying and Selling

In related news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $156.58, for a total value of $12,206,507.06. Following the completion of the transaction, the chairman owned 321,256 shares of the company's stock, valued at $50,302,264.48. The trade was a 19.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Robert Parahus sold 7,500 shares of the company's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $149.66, for a total value of $1,122,450.00. Following the sale, the chief operating officer owned 23,457 shares of the company's stock, valued at approximately $3,510,574.62. This represents a 24.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 86,457 shares of company stock valued at $13,468,657 over the last 90 days. Corporate insiders own 1.37% of the company's stock.

Institutional Trading of Toll Brothers

A number of institutional investors have recently modified their holdings of TOL. Hilton Head Capital Partners LLC lifted its position in Toll Brothers by 65.5% during the first quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company's stock valued at $26,000 after acquiring an additional 74 shares during the last quarter. Wiser Advisor Group LLC purchased a new position in Toll Brothers in the third quarter worth $27,000. Pinnacle Holdings LLC purchased a new position in Toll Brothers in the fourth quarter worth $27,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Toll Brothers during the third quarter worth $29,000. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Toll Brothers during the fourth quarter worth $34,000. 91.76% of the stock is currently owned by 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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