Toll Brothers (NYSE:TOL) Cut to In-Line at Evercore ISI

Key Points

• Toll Brothers has been downgraded by Evercore ISI from a "strong-buy" rating to a "hold" rating.
• Despite the downgrade, other analysts such as Royal Bank Of Canada and Bank of America have raised their price objectives for Toll Brothers' stock, reflecting continued optimism in other quarters.
• Toll Brothers recently reported earnings that exceeded expectations, with a revenue of $2.95 billion and earnings per share of $3.73, marking an 8% increase compared to the same quarter last year.

Toll Brothers (NYSE:TOL - Get Free Report) was downgraded by stock analysts at Evercore ISI from an "outperform" rating to an "in-line" rating in a note issued to investors on Tuesday, Marketbeat reports. They presently have a $160.00 price objective on the construction company's stock, down from their prior price objective of $169.00. Evercore ISI's target price points to a potential upside of 20.43% from the stock's previous close.

Several other equities research analysts have also commented on TOL. Royal Bank Of Canada boosted their target price on shares of Toll Brothers from $133.00 to $145.00 and gave the stock an "outperform" rating in a research report on Thursday, August 21st. Bank of America lifted their price target on Toll Brothers from $150.00 to $155.00 and gave the stock a "buy" rating in a research note on Thursday, September 18th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Toll Brothers in a research note on Saturday, September 27th. Wedbush reaffirmed an "outperform" rating and set a $165.00 price target on shares of Toll Brothers in a research note on Thursday, September 18th. Finally, Argus lifted their price target on Toll Brothers from $150.00 to $165.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $149.79.

Toll Brothers Price Performance

Shares of NYSE TOL opened at $132.86 on Tuesday. The firm has a market capitalization of $12.81 billion, a P/E ratio of 9.76, a PEG ratio of 1.67 and a beta of 1.40. Toll Brothers has a one year low of $86.67 and a one year high of $169.52. The company's fifty day moving average is $135.79 and its two-hundred day moving average is $117.25. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.51 and a current ratio of 4.38.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its earnings results on Tuesday, August 19th. The construction company reported $3.73 EPS for the quarter, topping the consensus estimate of $3.59 by $0.14. The company had revenue of $2.95 billion for the quarter, compared to analyst estimates of $2.86 billion. Toll Brothers had a net margin of 12.64% and a return on equity of 17.42%. The business's revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the firm earned $3.60 EPS. Analysts forecast that Toll Brothers will post 13.83 EPS for the current fiscal year.

Insider Buying and Selling

In other Toll Brothers news, CEO Douglas C. Jr. Yearley sold 25,000 shares of Toll Brothers stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $138.26, for a total value of $3,456,500.00. Following the completion of the sale, the chief executive officer owned 286,117 shares in the company, valued at $39,558,536.42. The trade was a 8.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Christine Garvey sold 770 shares of Toll Brothers stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $119.82, for a total value of $92,261.40. Following the completion of the sale, the director owned 11,590 shares of the company's stock, valued at $1,388,713.80. This trade represents a 6.23% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 42,413 shares of company stock worth $5,746,216 over the last ninety days. Insiders own 1.54% of the company's stock.

Institutional Trading of Toll Brothers

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. UMB Bank n.a. grew its holdings in shares of Toll Brothers by 83.0% during the 1st quarter. UMB Bank n.a. now owns 950 shares of the construction company's stock worth $100,000 after purchasing an additional 431 shares during the period. Farther Finance Advisors LLC grew its holdings in shares of Toll Brothers by 60.3% during the 1st quarter. Farther Finance Advisors LLC now owns 1,395 shares of the construction company's stock worth $147,000 after purchasing an additional 525 shares during the period. Pallas Capital Advisors LLC grew its holdings in shares of Toll Brothers by 90.7% during the 1st quarter. Pallas Capital Advisors LLC now owns 4,749 shares of the construction company's stock worth $501,000 after purchasing an additional 2,259 shares during the period. Handelsbanken Fonder AB grew its holdings in shares of Toll Brothers by 423.1% during the 1st quarter. Handelsbanken Fonder AB now owns 136,000 shares of the construction company's stock worth $14,360,000 after purchasing an additional 110,000 shares during the period. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Toll Brothers by 56.2% during the 1st quarter. Assenagon Asset Management S.A. now owns 21,974 shares of the construction company's stock worth $2,320,000 after purchasing an additional 7,908 shares during the period. Hedge funds and other institutional investors own 91.76% of the company's stock.

Toll Brothers Company Profile

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.