Toll Brothers (NYSE:TOL) Given "Outperform" Rating at Wedbush

Key Points

• Toll Brothers has received an "outperform" rating from Wedbush with a price target of $165.00, suggesting a potential upside of 17.88% from its current price of approximately $139.97.
• The company's stock has experienced a significant increase in price targets from multiple brokerages, including Raymond James and Argus, indicating strong analyst confidence in Toll Brothers' stock performance.
• Toll Brothers reported a quarterly EPS of $3.73, exceeding analysts' expectations and reflecting an 8.0% year-over-year revenue growth.

Wedbush reissued their outperform rating on shares of Toll Brothers (NYSE:TOL - Free Report) in a research report released on Thursday,RTT News reports. The firm currently has a $165.00 price target on the construction company's stock.

A number of other brokerages have also weighed in on TOL. Bank of America lifted their price objective on shares of Toll Brothers from $132.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, August 19th. Argus lifted their price objective on shares of Toll Brothers from $150.00 to $165.00 and gave the company a "buy" rating in a report on Friday, September 5th. Seaport Res Ptn upgraded shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 23rd. Raymond James Financial restated a "strong-buy" rating and issued a $160.00 price target (up previously from $130.00) on shares of Toll Brothers in a report on Monday, August 25th. Finally, Wells Fargo & Company boosted their price target on shares of Toll Brothers from $140.00 to $150.00 and gave the company an "overweight" rating in a report on Monday, August 18th. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Toll Brothers presently has a consensus rating of "Moderate Buy" and a consensus price target of $149.79.

Toll Brothers Price Performance

TOL traded down $0.28 during trading on Thursday, hitting $139.56. 3,055,508 shares of the company traded hands, compared to its average volume of 1,626,893. Toll Brothers has a 1 year low of $86.67 and a 1 year high of $169.52. The company has a market cap of $13.45 billion, a PE ratio of 10.25, a P/E/G ratio of 0.92 and a beta of 1.33. The stock's 50-day simple moving average is $131.63 and its two-hundred day simple moving average is $114.65. The company has a current ratio of 4.38, a quick ratio of 0.51 and a debt-to-equity ratio of 0.36.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings results on Tuesday, August 19th. The construction company reported $3.73 EPS for the quarter, topping analysts' consensus estimates of $3.59 by $0.14. Toll Brothers had a net margin of 12.64% and a return on equity of 17.42%. The firm had revenue of $2.95 billion during the quarter, compared to analysts' expectations of $2.86 billion. During the same period in the previous year, the company earned $3.60 EPS. The firm's revenue for the quarter was up 8.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Toll Brothers will post 13.83 earnings per share for the current fiscal year.

Toll Brothers Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 24th. Shareholders of record on Friday, October 10th will be given a dividend of $0.25 per share. The ex-dividend date is Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.7%. Toll Brothers's dividend payout ratio is currently 7.35%.

Insiders Place Their Bets

In other news, Director Stephen F. East sold 2,500 shares of the firm's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $115.33, for a total value of $288,325.00. Following the transaction, the director directly owned 12,787 shares of the company's stock, valued at approximately $1,474,724.71. This trade represents a 16.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, COO Robert Parahus sold 9,831 shares of the firm's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $130.84, for a total transaction of $1,286,288.04. Following the completion of the transaction, the chief operating officer directly owned 19,692 shares in the company, valued at approximately $2,576,501.28. This represents a 33.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 42,413 shares of company stock valued at $5,746,216. Corporate insiders own 1.54% of the company's stock.

Hedge Funds Weigh In On Toll Brothers

Several hedge funds and other institutional investors have recently modified their holdings of the business. Farther Finance Advisors LLC increased its position in Toll Brothers by 6.5% during the second quarter. Farther Finance Advisors LLC now owns 1,485 shares of the construction company's stock worth $169,000 after purchasing an additional 90 shares during the last quarter. Brooklyn Investment Group increased its position in Toll Brothers by 52.8% during the first quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock worth $29,000 after purchasing an additional 94 shares during the last quarter. Old Port Advisors increased its position in Toll Brothers by 4.5% during the second quarter. Old Port Advisors now owns 2,165 shares of the construction company's stock worth $247,000 after purchasing an additional 94 shares during the last quarter. KLP Kapitalforvaltning AS increased its position in Toll Brothers by 0.4% during the first quarter. KLP Kapitalforvaltning AS now owns 24,800 shares of the construction company's stock worth $2,619,000 after purchasing an additional 100 shares during the last quarter. Finally, Applied Finance Capital Management LLC increased its position in Toll Brothers by 4.0% during the second quarter. Applied Finance Capital Management LLC now owns 2,579 shares of the construction company's stock worth $294,000 after purchasing an additional 100 shares during the last quarter. 91.76% of the stock is owned by hedge funds and other institutional investors.

About Toll Brothers

Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments.