Wedbush Has Negative Outlook for Toll Brothers Q1 Earnings

Key Points

• Wedbush has revised its Q1 2026 earnings estimate for Toll Brothers down to $1.90 per share, reflecting a slight decrease from the prior estimate of $1.99.
• The company posted $3.73 EPS in its last quarterly earnings, exceeding the consensus estimate of $3.59, alongside an 8% year-over-year revenue increase.
• Various analysts have different ratings for Toll Brothers, with a consensus rating of "Moderate Buy" and an average target price of approximately $145.92.

Toll Brothers Inc. (NYSE:TOL - Free Report) - Equities research analysts at Wedbush dropped their Q1 2026 earnings estimates for shares of Toll Brothers in a report issued on Tuesday, August 26th. Wedbush analyst J. Mccanless now forecasts that the construction company will post earnings of $1.90 per share for the quarter, down from their previous estimate of $1.99. Wedbush currently has a "Outperform" rating and a $165.00 target price on the stock. The consensus estimate for Toll Brothers' current full-year earnings is $13.83 per share. Wedbush also issued estimates for Toll Brothers' Q2 2026 earnings at $3.55 EPS, Q4 2026 earnings at $5.31 EPS, FY2026 earnings at $14.62 EPS, Q1 2027 earnings at $2.03 EPS, Q3 2027 earnings at $4.49 EPS and FY2027 earnings at $16.98 EPS.

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

Several other research firms have also commented on TOL. Wall Street Zen raised shares of Toll Brothers from a "sell" rating to a "hold" rating in a report on Wednesday, May 14th. Oppenheimer reduced their target price on shares of Toll Brothers from $165.00 to $155.00 and set an "outperform" rating for the company in a research note on Thursday, May 15th. Wells Fargo & Company boosted their target price on shares of Toll Brothers from $140.00 to $150.00 and gave the company an "overweight" rating in a research note on Monday, August 18th. Evercore ISI reissued an "outperform" rating and set a $169.00 target price (up from $167.00) on shares of Toll Brothers in a research note on Thursday, May 22nd. Finally, Barclays reissued an "underweight" rating on shares of Toll Brothers in a research note on Tuesday, May 20th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Toll Brothers presently has a consensus rating of "Moderate Buy" and a consensus target price of $145.92.

Toll Brothers Trading Down 0.5%

NYSE TOL opened at $137.94 on Wednesday. Toll Brothers has a one year low of $86.67 and a one year high of $169.52. The company has a 50-day simple moving average of $121.94 and a 200-day simple moving average of $111.44. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.51 and a current ratio of 4.38. The firm has a market capitalization of $13.54 billion, a PE ratio of 10.14, a price-to-earnings-growth ratio of 0.90 and a beta of 1.33.

Institutional Trading of Toll Brothers

Hedge funds and other institutional investors have recently made changes to their positions in the business. Trail Ridge Investment Advisors LLC raised its holdings in shares of Toll Brothers by 0.5% in the 1st quarter. Trail Ridge Investment Advisors LLC now owns 25,624 shares of the construction company's stock worth $2,706,000 after purchasing an additional 132 shares in the last quarter. Left Brain Wealth Management LLC bought a new stake in shares of Toll Brothers in the 1st quarter worth approximately $317,000. MQS Management LLC bought a new stake in shares of Toll Brothers in the 1st quarter worth approximately $649,000. Financial Security Advisor Inc. bought a new stake in shares of Toll Brothers in the 1st quarter worth approximately $231,000. Finally, Concurrent Investment Advisors LLC bought a new stake in shares of Toll Brothers in the 1st quarter worth approximately $227,000. 91.76% of the stock is currently owned by institutional investors.

Insider Activity at Toll Brothers

In other Toll Brothers news, CAO Michael J. Grubb sold 500 shares of the business's stock in a transaction dated 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. The trade was a 17.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Robert Parahus sold 9,831 shares of the business's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $130.84, for a total transaction of $1,286,288.04. Following the sale, the chief operating officer owned 19,692 shares in the company, valued at $2,576,501.28. This trade represents a 33.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 13,601 shares of company stock valued at $1,726,874 over the last quarter. Corporate insiders own 1.54% of the company's stock.

Toll Brothers Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Friday, July 11th. Toll Brothers's payout ratio is 7.35%.

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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