Toll Brothers' (TOL) Outperform Rating Reiterated at Wedbush

Key Points

• Wedbush has reaffirmed an "outperform" rating for Toll Brothers (NYSE:TOL) with a target price of $165.00, indicating a potential upside of 19% from its previous close.
• Recent earnings reports showed Toll Brothers exceeded consensus estimates with $3.73 earnings per share for the quarter and a revenue of $2.95 billion, up 8% from the previous year.
• Insider transactions revealed that COO Robert Parahus sold over 9,800 shares, representing a 33.30% decrease in ownership, while institutional investors continue to significantly increase their stakes in the company.

Wedbush reaffirmed their outperform rating on shares of Toll Brothers (NYSE:TOL - Free Report) in a report released on Tuesday morning,Benzinga reports. They currently have a $165.00 target price on the construction company's stock. Wedbush also issued estimates for Toll Brothers' Q4 2025 earnings at $5.10 EPS, FY2025 earnings at $14.01 EPS, Q1 2026 earnings at $1.90 EPS, Q2 2026 earnings at $3.55 EPS, Q3 2026 earnings at $3.92 EPS, Q4 2026 earnings at $5.31 EPS, FY2026 earnings at $14.62 EPS, Q1 2027 earnings at $2.03 EPS, Q2 2027 earnings at $4.55 EPS, Q3 2027 earnings at $4.49 EPS and FY2027 earnings at $16.98 EPS.

TOL has been the topic of several other research reports. UBS Group reissued a "buy" rating on shares of Toll Brothers in a research report on Tuesday, May 20th. Oppenheimer decreased 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. Wall Street Zen upgraded shares of Toll Brothers from a "sell" rating to a "hold" rating in a research report on Wednesday, May 14th. Seaport Res Ptn raised shares of Toll Brothers from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 23rd. Finally, Barclays reissued an "underweight" rating on shares of Toll Brothers in a report on Tuesday, May 20th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Toll Brothers presently has an average rating of "Moderate Buy" and an average price target of $147.85.

Toll Brothers Stock Up 0.1%

Shares of Toll Brothers stock traded up $0.19 on Tuesday, reaching $139.07. The stock had a trading volume of 1,188,115 shares, compared to its average volume of 1,624,420. The company has a 50 day moving average price of $123.87 and a 200 day moving average price of $111.81. The company has a quick ratio of 0.51, a current ratio of 4.38 and a debt-to-equity ratio of 0.36. Toll Brothers has a 1 year low of $86.67 and a 1 year high of $169.52. The stock has a market capitalization of $13.65 billion, a P/E ratio of 10.22, a P/E/G ratio of 0.91 and a beta of 1.33.

Toll Brothers (NYSE:TOL - Get Free Report) last released its earnings results on Tuesday, August 19th. The construction company reported $3.73 earnings per share for the quarter, topping the consensus estimate of $3.59 by $0.14. The company had revenue of $2.95 billion for the quarter, compared to the consensus estimate of $2.86 billion. Toll Brothers had a net margin of 12.64% and a return on equity of 17.42%. Toll Brothers's revenue was up 8.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.60 EPS. As a group, equities research analysts forecast that Toll Brothers will post 13.83 EPS for the current year.

Toll Brothers Dividend Announcement

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

Insider Activity

In related news, Director Christine Garvey sold 770 shares of the firm's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $119.82, for a total value of $92,261.40. Following the sale, the director owned 11,590 shares of the company's stock, valued at $1,388,713.80. This trade represents a 6.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Michael J. Grubb sold 500 shares of the firm'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 completion of the sale, the chief accounting officer directly owned 2,439 shares in the company, valued at approximately $292,680. This trade represents a 17.01% decrease in their position. The disclosure for this sale can be found here. Insiders sold 13,601 shares of company stock worth $1,726,874 in the last ninety days. 1.54% of the stock is owned by insiders.

Institutional Trading of Toll Brothers

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TOL. Norges Bank acquired a new stake in Toll Brothers during the second quarter worth approximately $154,782,000. AQR Capital Management LLC grew its position in Toll Brothers by 83.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,607,993 shares of the construction company's stock valued at $297,650,000 after buying an additional 1,183,304 shares during the last quarter. Long Pond Capital LP purchased a new position in Toll Brothers in the 1st quarter valued at $117,870,000. Balyasny Asset Management L.P. grew its position in Toll Brothers by 24,475.1% in the 4th quarter. Balyasny Asset Management L.P. now owns 1,114,728 shares of the construction company's stock valued at $140,400,000 after buying an additional 1,110,192 shares during the last quarter. Finally, Holocene Advisors LP grew its stake in shares of Toll Brothers by 150.7% during the 2nd quarter. Holocene Advisors LP now owns 1,249,722 shares of the construction company's stock worth $142,631,000 after purchasing an additional 751,255 shares during the period. Institutional investors and hedge funds own 91.76% of the company's stock.

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.