Toll Brothers (NYSE:TOL) Upgraded by Evercore to Outperform Rating

Key Points

• Evercore upgraded Toll Brothers to an "outperform" rating with a $176 price target (about a 25.6% upside), and several other firms have raised targets leaving the consensus at a "Moderate Buy" with an average target of $165.69.
• Q4 results beat expectations: Toll Brothers reported $2.19 EPS vs. $2.05 expected and revenue of $2.15B (up 15.4% year‑over‑year), and analysts forecast about 13.83 EPS for the current fiscal year.
• Insider selling is notable — CEO Douglas Yearley sold 45,116 shares (a 12.31% reduction in his position) and insiders now own 1.37% of the company, which may attract investor scrutiny.

Toll Brothers (NYSE:TOL - Get Free Report) was upgraded by research analysts at Evercore from an "in-line" rating to an "outperform" rating in a note issued to investors on Monday,Finviz reports. The brokerage presently has a $176.00 price target on the construction company's stock. Evercore's price target would suggest a potential upside of 25.56% from the company's previous close.

Other analysts have also issued reports about the company. Keefe, Bruyette & Woods raised their target price on Toll Brothers from $143.00 to $170.00 and gave the company a "market perform" rating in a research note on Wednesday, February 25th. Royal Bank Of Canada lifted their price objective on Toll Brothers from $144.00 to $161.00 and gave the stock an "outperform" rating in a research report on Thursday, February 19th. Weiss Ratings upgraded Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, February 10th. Wells Fargo & Company lifted their price objective on Toll Brothers from $170.00 to $185.00 and gave the stock an "overweight" rating in a research report on Thursday, February 19th. Finally, Citigroup lifted their price objective on Toll Brothers from $141.00 to $162.00 and gave the stock a "neutral" rating in a research report on Thursday, February 26th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $165.69.

Toll Brothers Stock Performance

Shares of NYSE:TOL opened at $140.17 on Monday. Toll Brothers has a twelve month low of $88.95 and a twelve month high of $168.36. The firm has a market cap of $13.28 billion, a PE ratio of 10.01, a price-to-earnings-growth ratio of 1.09 and a beta of 1.49. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.62 and a current ratio of 4.57. The business has a fifty day moving average of $147.06 and a 200-day moving average of $140.97.

Toll Brothers (NYSE:TOL - Get Free Report) last announced its earnings results on Tuesday, February 17th. The construction company reported $2.19 earnings per share for the quarter, beating analysts' consensus estimates of $2.05 by $0.14. Toll Brothers had a return on equity of 16.83% and a net margin of 12.26%.The company had revenue of $2.15 billion during the quarter, compared to analyst estimates of $1.86 billion. During the same period last year, the company posted $1.75 earnings per share. The firm's quarterly revenue was up 15.4% compared to the same quarter last year. On average, equities research analysts predict that Toll Brothers will post 13.83 EPS for the current fiscal year.

Insider Activity

In other news, Director Paul E. Shapiro sold 3,965 shares of Toll Brothers stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $146.68, for a total transaction of $581,586.20. Following the transaction, the director owned 118,680 shares in the company, valued at $17,407,982.40. The trade was a 3.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of Toll Brothers stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $160.42, for a total value of $7,237,508.72. Following the transaction, the chief executive officer owned 321,256 shares in the company, valued at $51,535,887.52. This trade represents a 12.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Toll Brothers

Several institutional investors have recently modified their holdings of the business. Old North State Trust LLC lifted its holdings in shares of Toll Brothers by 6.4% during the 4th quarter. Old North State Trust LLC now owns 7,438 shares of the construction company's stock valued at $1,006,000 after purchasing an additional 450 shares in the last quarter. Stance Capital LLC bought a new position in shares of Toll Brothers during the 4th quarter valued at about $1,351,000. Corient Private Wealth LLC lifted its holdings in shares of Toll Brothers by 97.1% during the 4th quarter. Corient Private Wealth LLC now owns 9,246 shares of the construction company's stock valued at $1,251,000 after purchasing an additional 4,556 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new position in shares of Toll Brothers during the 4th quarter valued at about $113,000. Finally, McLaughlin Asset Management Inc. bought a new position in shares of Toll Brothers during the 4th quarter valued at about $1,227,000. Institutional investors own 91.76% of the company's stock.

Toll Brothers Company Profile

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company's core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.

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