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

Key Points

• Toll Brothers has a “Moderate Buy” consensus rating from 21 analysts: 15 rate it a buy, one a strong buy, four a hold and one a sell. The average 12-month price target is $164.88, above the reported opening price of $145.75.
• The homebuilder exceeded quarterly expectations, reporting $2.72 in EPS versus the $2.58 consensus and $2.53 billion in revenue versus $2.42 billion expected. However, revenue declined 7.6% year over year, and analysts project $12.69 in full-year EPS.
• Toll Brothers paid a quarterly dividend of $0.26 per share, equivalent to a $1.04 annualized dividend and a 0.7% yield. Meanwhile, two senior insiders sold shares, while institutional investors and hedge funds collectively own 91.76% of the stock.

Shares of Toll Brothers Inc. (NYSE:TOL - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-one research firms that are presently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, fifteen have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $164.8750.

Several equities research analysts have recently weighed in on the stock. Weiss Ratings raised shares of Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 17th. BTIG Research started coverage on Toll Brothers in a research note on Tuesday, June 9th. They issued a "buy" rating for the company. Evercore reiterated an "outperform" rating and issued a $185.00 price target on shares of Toll Brothers in a research note on Thursday, May 21st. Keefe, Bruyette & Woods upgraded Toll Brothers from a "market perform" rating to an "outperform" rating and upped their price objective for the company from $158.00 to $161.00 in a research note on Tuesday, June 9th. Finally, Seaport Research Partners restated a "neutral" rating on shares of Toll Brothers in a research note on Tuesday, April 7th.

Toll Brothers Stock Performance

Shares of TOL opened at $145.75 on Monday. The firm has a market cap of $13.62 billion, a price-to-earnings ratio of 11.03, a PEG ratio of 1.21 and a beta of 1.35. The company has a quick ratio of 0.59, a current ratio of 4.67 and a debt-to-equity ratio of 0.33. The business's 50 day moving average is $149.07 and its two-hundred day moving average is $146.07. Toll Brothers has a 52-week low of $117.50 and a 52-week high of $168.36.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings results on Tuesday, May 19th. The construction company reported $2.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.58 by $0.14. The business had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.42 billion. Toll Brothers had a net margin of 11.66% and a return on equity of 15.47%. The business's revenue was down 7.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.50 earnings per share. Analysts forecast that Toll Brothers will post 12.69 EPS for the current fiscal year.

Toll Brothers Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a $0.26 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $1.04 dividend on an annualized basis and a yield of 0.7%. Toll Brothers's dividend payout ratio (DPR) is currently 7.87%.

Insider Buying and Selling

In other news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $156.58, for a total transaction of $12,206,507.06. Following the sale, the chairman directly owned 321,256 shares in the company, valued at approximately $50,302,264.48. This represents a 19.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Robert Parahus sold 7,500 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 23,457 shares in the company, valued at approximately $3,510,574.62. This trade represents a 24.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Toll Brothers

Several large investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC grew its holdings in Toll Brothers by 25.3% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 108,379 shares of the construction company's stock worth $14,694,000 after buying an additional 21,907 shares in the last quarter. Annex Advisory Services LLC raised its stake in Toll Brothers by 30.8% during the 4th quarter. Annex Advisory Services LLC now owns 44,251 shares of the construction company's stock valued at $5,984,000 after acquiring an additional 10,420 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in Toll Brothers by 52.4% during the 4th quarter. Thrivent Financial for Lutherans now owns 45,149 shares of the construction company's stock valued at $6,105,000 after acquiring an additional 15,526 shares in the last quarter. Summit Place Financial Advisors LLC boosted its position in Toll Brothers by 89.1% during the 4th quarter. Summit Place Financial Advisors LLC now owns 12,890 shares of the construction company's stock worth $1,743,000 after acquiring an additional 6,075 shares during the period. Finally, Investment House LLC boosted its position in Toll Brothers by 103.2% during the 4th quarter. Investment House LLC now owns 33,849 shares of the construction company's stock worth $4,577,000 after acquiring an additional 17,193 shares during the period. 91.76% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.