Wells Fargo & Company Forecasts Strong Price Appreciation for Toll Brothers (NYSE:TOL) Stock

Key Points

• Wells Fargo & Company raised the price target for Toll Brothers (NYSE:TOL) from $135.00 to $140.00, indicating a potential upside of 15.67% from its previous close.
• Toll Brothers reported earnings of $3.50 per share, surpassing the consensus estimate by $0.64, with revenue amounting to $2.74 billion in the most recent quarter.
• Market analysts hold mixed ratings on Toll Brothers, with the consensus rating being "Moderate Buy" and an average target price of $142.23.

Toll Brothers (NYSE:TOL - Get Free Report) had its target price increased by research analysts at Wells Fargo & Company from $135.00 to $140.00 in a research note issued on Friday,Benzinga reports. The firm currently has an "overweight" rating on the construction company's stock. Wells Fargo & Company's price target suggests a potential upside of 10.02% from the stock's current price.

A number of other equities research analysts also recently weighed in on TOL. Evercore ISI reaffirmed an "outperform" rating and issued a $169.00 target price (up from $167.00) on shares of Toll Brothers in a research note on Thursday, May 22nd. Royal Bank Of Canada reduced their target price on Toll Brothers from $139.00 to $133.00 and set an "outperform" rating on the stock in a research note on Friday, May 16th. Barclays reiterated an "underweight" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Seaport Res Ptn upgraded Toll Brothers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 23rd. Finally, Oppenheimer reduced their price target on shares of Toll Brothers from $165.00 to $155.00 and set an "outperform" rating on the stock in a research report on Thursday, May 15th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, seven have assigned a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $142.23.

Toll Brothers Price Performance

Toll Brothers stock traded up $2.26 during midday trading on Friday, reaching $127.25. 1,065,402 shares of the stock were exchanged, compared to its average volume of 1,790,714. The company's fifty day moving average is $114.77 and its 200-day moving average is $111.85. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.44 and a current ratio of 4.21. Toll Brothers has a 52 week low of $86.67 and a 52 week high of $169.52. The firm has a market cap of $12.49 billion, a PE ratio of 9.44, a PEG ratio of 1.27 and a beta of 1.33.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its quarterly earnings data on Tuesday, May 20th. The construction company reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.86 by $0.64. The company had revenue of $2.74 billion during the quarter, compared to analyst estimates of $2.50 billion. Toll Brothers had a return on equity of 17.87% and a net margin of 12.95%. The firm's quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter last year, the company earned $3.38 earnings per share. On average, sell-side analysts forecast that Toll Brothers will post 13.83 EPS for the current year.

Insider Activity at Toll Brothers

In other Toll Brothers news, CAO Michael J. Grubb sold 500 shares of the company's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $120.00, for a total value of $60,000.00. Following the completion of the transaction, the chief accounting officer directly owned 2,439 shares in the company, valued at approximately $292,680. This represents a 17.01% 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, Director Stephen F. East sold 2,500 shares of the business's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $115.33, for a total transaction of $288,325.00. Following the transaction, the director owned 12,787 shares in the company, valued at $1,474,724.71. This represents a 16.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 3,770 shares of company stock worth $440,586 over the last quarter. Corporate insiders own 1.54% of the company's stock.

Institutional Investors Weigh In On Toll Brothers

Several hedge funds have recently made changes to their positions in the company. Long Pond Capital LP purchased a new position in Toll Brothers during the first quarter valued at $117,870,000. Balyasny Asset Management L.P. lifted its position in Toll Brothers by 24,475.1% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,114,728 shares of the construction company's stock valued at $140,400,000 after acquiring an additional 1,110,192 shares during the period. D1 Capital Partners L.P. purchased a new position in Toll Brothers during the 4th quarter valued at about $106,428,000. Victory Capital Management Inc. boosted its stake in Toll Brothers by 149.5% during the first quarter. Victory Capital Management Inc. now owns 974,587 shares of the construction company's stock worth $102,907,000 after acquiring an additional 583,940 shares in the last quarter. Finally, Junto Capital Management LP purchased a new stake in Toll Brothers in the fourth quarter worth about $54,929,000. 91.76% of the stock is currently owned by 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.