Toll Brothers (NYSE:TOL) Shares Gap Up on Better-Than-Expected Earnings

Toll Brothers, Inc. (NYSE:TOL - Get Free Report)'s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $104.51, but opened at $106.89. Toll Brothers shares last traded at $105.73, with a volume of 660,958 shares traded.

The construction company reported $3.50 EPS for the quarter, beating analysts' consensus estimates of $2.86 by $0.64. The company had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.50 billion. Toll Brothers had a return on equity of 18.32% and a net margin of 14.03%. The company's quarterly revenue was down 3.5% compared to the same quarter last year. During the same period in the previous year, the company posted $3.38 earnings per share.

Toll Brothers Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, April 25th. Investors of record on Friday, April 11th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.95%. The ex-dividend date was Friday, April 11th. This is a positive change from Toll Brothers's previous quarterly dividend of $0.23. Toll Brothers's dividend payout ratio is presently 6.88%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Keefe, Bruyette & Woods reaffirmed a "market perform" rating on shares of Toll Brothers in a research report on Tuesday. The Goldman Sachs Group decreased their target price on Toll Brothers from $143.00 to $125.00 and set a "neutral" rating on the stock in a research report on Thursday, February 20th. StockNews.com raised Toll Brothers from a "sell" rating to a "hold" rating in a research report on Wednesday, May 14th. 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 report on Friday, May 16th. Finally, UBS Group reaffirmed a "buy" rating on shares of Toll Brothers in a report on Tuesday. One investment analyst has rated the stock with a sell rating, six have issued a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $143.64.

Insider Activity

In other Toll Brothers news, Director Christine Garvey sold 420 shares of Toll Brothers stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $110.58, for a total transaction of $46,443.60. Following the completion of the transaction, the director now owns 13,186 shares in the company, valued at approximately $1,458,107.88. The trade was a 3.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 1.54% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Toll Brothers

Hedge funds have recently modified their holdings of the company. Barclays PLC increased its holdings in Toll Brothers by 3.9% in the 3rd quarter. Barclays PLC now owns 233,681 shares of the construction company's stock worth $36,103,000 after acquiring an additional 8,794 shares during the last quarter. Park Avenue Securities LLC grew its position in shares of Toll Brothers by 7.3% during the 4th quarter. Park Avenue Securities LLC now owns 2,147 shares of the construction company's stock valued at $270,000 after purchasing an additional 146 shares in the last quarter. Merit Financial Group LLC purchased a new position in shares of Toll Brothers during the 4th quarter valued at $753,000. HB Wealth Management LLC purchased a new position in shares of Toll Brothers during the 4th quarter valued at $243,000. Finally, UMB Bank n.a. grew its position in Toll Brothers by 91.5% in the fourth quarter. UMB Bank n.a. now owns 519 shares of the construction company's stock worth $65,000 after acquiring an additional 248 shares in the last quarter. Institutional investors own 91.76% of the company's stock.

Toll Brothers Price Performance

The firm's 50-day moving average is $101.57 and its 200-day moving average is $122.71. The company has a market capitalization of $10.53 billion, a PE ratio of 7.35, a price-to-earnings-growth ratio of 1.02 and a beta of 1.45. The company has a quick ratio of 0.80, a current ratio of 4.65 and a debt-to-equity ratio of 0.35.

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.

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