Toll Brothers (NYSE:TOL) Shares Gap Up Following Earnings Beat

Toll Brothers, Inc. (NYSE:TOL - Get Free Report) gapped up prior to trading 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 changing hands.

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

Toll Brothers Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 25th. Stockholders of record on Friday, April 11th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.96%. The ex-dividend date of this dividend was Friday, April 11th. This is an increase from Toll Brothers's previous quarterly dividend of $0.23. Toll Brothers's payout ratio is currently 7.42%.

Analyst Upgrades and Downgrades

TOL has been the subject of a number of research reports. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $130.00 target price (up from $120.00) on shares of Toll Brothers in a report on Thursday. The Goldman Sachs Group decreased their price objective on shares of Toll Brothers from $143.00 to $125.00 and set a "neutral" rating on the stock in a report on Thursday, February 20th. Wedbush reiterated an "outperform" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Evercore ISI restated an "outperform" rating and issued a $169.00 price target (up previously from $167.00) on shares of Toll Brothers in a research report on Thursday. Finally, Bank of America cut their price target on Toll Brothers from $156.00 to $140.00 and set a "buy" rating for the company in a report on Thursday, February 20th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $141.36.

Institutional Trading of Toll Brothers

A number of institutional investors have recently modified their holdings of TOL. Belpointe Asset Management LLC raised its holdings in shares of Toll Brothers by 19.2% during the 1st quarter. Belpointe Asset Management LLC now owns 4,716 shares of the construction company's stock valued at $498,000 after buying an additional 759 shares during the period. Focus Partners Wealth lifted its stake in Toll Brothers by 11.7% during the first quarter. Focus Partners Wealth now owns 73,832 shares of the construction company's stock worth $7,796,000 after purchasing an additional 7,762 shares during the last quarter. Integrity Alliance LLC. bought a new stake in Toll Brothers during the first quarter valued at $1,183,000. Alaethes Wealth LLC raised its holdings in shares of Toll Brothers by 3.4% during the first quarter. Alaethes Wealth LLC now owns 19,212 shares of the construction company's stock worth $2,029,000 after purchasing an additional 640 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Toll Brothers by 9.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 304,227 shares of the construction company's stock worth $32,123,000 after acquiring an additional 25,157 shares during the last quarter. Hedge funds and other institutional investors own 91.76% of the company's stock.

Toll Brothers Trading Up 0.1%

The company has a debt-to-equity ratio of 0.35, a current ratio of 4.65 and a quick ratio of 0.80. The company has a market cap of $10.41 billion, a price-to-earnings ratio of 7.17, a P/E/G ratio of 1.02 and a beta of 1.45. The firm's fifty day moving average price is $101.50 and its 200-day moving average price is $121.51.

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.