Toll Brothers (NYSE:TOL) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Toll Brothers reported earnings of $3.73 per share for the quarter, beating estimates by $0.14 EPS.
• The company's stock rose by 0.8% after the earnings announcement, reaching a price of $132.1850.
• Toll Brothers declared a quarterly dividend of $0.25 per share, representing an annualized yield of 0.8%.

Toll Brothers (NYSE:TOL - Get Free Report) announced its quarterly earnings results on Tuesday. The construction company reported $3.73 earnings per share for the quarter, beating the consensus estimate of $3.59 by $0.14, Zacks reports. Toll Brothers had a net margin of 12.95% and a return on equity of 17.87%.

Toll Brothers Stock Up 0.8%

Shares of TOL stock traded up $1.0050 during trading hours on Tuesday, reaching $132.1850. 2,826,498 shares of the stock were exchanged, compared to its average volume of 1,772,130. The business's fifty day moving average is $118.78 and its two-hundred day moving average is $111.15. The company has a debt-to-equity ratio of 0.35, a current ratio of 4.21 and a quick ratio of 0.44. Toll Brothers has a 12-month low of $86.67 and a 12-month high of $169.52. The firm has a market capitalization of $12.98 billion, a P/E ratio of 9.81, a P/E/G ratio of 1.36 and a beta of 1.33.

Toll Brothers Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, July 11th. Toll Brothers's dividend payout ratio is presently 7.42%.

Insider Buying and Selling

In related news, CAO Michael J. Grubb sold 500 shares of the company's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $120.00, for a total transaction of $60,000.00. Following the sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Christine Garvey sold 770 shares of the company's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $119.82, for a total transaction of $92,261.40. Following the sale, the director owned 11,590 shares in the company, valued at $1,388,713.80. The trade was a 6.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 3,770 shares of company stock worth $440,586. Company insiders own 1.54% of the company's stock.

Institutional Investors Weigh In On Toll Brothers

Several hedge funds have recently modified their holdings of the stock. Ieq Capital LLC lifted its stake in Toll Brothers by 643.8% during the second quarter. Ieq Capital LLC now owns 171,066 shares of the construction company's stock valued at $19,524,000 after purchasing an additional 148,066 shares during the last quarter. HRT Financial LP acquired a new stake in shares of Toll Brothers during the 2nd quarter valued at $14,876,000. CANADA LIFE ASSURANCE Co lifted its position in shares of Toll Brothers by 135.3% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 221,108 shares of the construction company's stock valued at $25,291,000 after acquiring an additional 127,133 shares during the last quarter. Man Group plc lifted its position in shares of Toll Brothers by 554.1% during the 2nd quarter. Man Group plc now owns 141,622 shares of the construction company's stock valued at $16,163,000 after acquiring an additional 119,972 shares during the last quarter. Finally, Raymond James Financial Inc. increased its stake in Toll Brothers by 29.1% in the 2nd quarter. Raymond James Financial Inc. now owns 318,602 shares of the construction company's stock worth $36,362,000 after purchasing an additional 71,853 shares in the last quarter. 91.76% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

TOL has been the topic of several recent research reports. UBS Group reissued a "buy" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Royal Bank Of Canada lowered their price target on shares of Toll Brothers from $139.00 to $133.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th. Oppenheimer lowered 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. Bank of America boosted 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. Finally, Raymond James Financial restated a "strong-buy" rating and issued a $130.00 price objective (down from $145.00) on shares of Toll Brothers in a report on Friday, May 23rd. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $142.62.

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.

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