Wells Fargo & Company Forecasts Strong Price Appreciation for Toll Brothers (NYSE:TOL) Stock

Key Points

• Wells Fargo & Company raised the target price for Toll Brothers stock from $140.00 to $150.00, indicating a potential upside of 14.64% from its current price and maintaining an "overweight" rating.
• Analysts have mixed ratings for Toll Brothers, with one maintaining a sell rating, while three have upgraded it to a buy or strong buy rating, resulting in a consensus rating of "Moderate Buy" and an average target price of $142.23.
• Toll Brothers recently reported quarterly earnings of $3.50 per share, surpassing estimates, while its revenue of $2.74 billion was also above projections, despite a 3.5% decrease from the same quarter last year.

Toll Brothers (NYSE:TOL - Get Free Report) had its target price upped by investment analysts at Wells Fargo & Company from $140.00 to $150.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has an "overweight" rating on the construction company's stock. Wells Fargo & Company's price objective indicates a potential upside of 14.64% from the stock's current price.

Other equities research analysts have also issued reports about the stock. Wall Street Zen upgraded shares of Toll Brothers from a "sell" rating to a "hold" rating in a report on Wednesday, May 14th. Seaport Res Ptn raised Toll Brothers from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 23rd. Keefe, Bruyette & Woods lowered their price objective on Toll Brothers from $132.00 to $120.00 and set a "market perform" rating on the stock in a research note on Tuesday, May 20th. UBS Group reaffirmed a "buy" rating on shares of Toll Brothers in a research note on Tuesday, May 20th. Finally, Evercore ISI reissued an "outperform" rating and issued a $169.00 target price (up from $167.00) on shares of Toll Brothers in a report on Thursday, May 22nd. One analyst has rated the stock with a sell rating, five have assigned a hold rating, seven have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, Toll Brothers presently has a consensus rating of "Moderate Buy" and an average target price of $142.23.

Toll Brothers Stock Performance

TOL stock traded up $0.35 during trading on Monday, hitting $130.85. 170,288 shares of the company's stock traded hands, compared to its average volume of 1,759,367. Toll Brothers has a 52 week low of $86.67 and a 52 week high of $169.52. The stock has a market capitalization of $12.85 billion, a price-to-earnings ratio of 9.71, a price-to-earnings-growth ratio of 1.36 and a beta of 1.33. The company has a quick ratio of 0.44, a current ratio of 4.21 and a debt-to-equity ratio of 0.35. The stock has a fifty day moving average price of $118.34 and a two-hundred day moving average price of $111.18.

Toll Brothers (NYSE:TOL - Get Free Report) last released its quarterly earnings data on Tuesday, May 20th. The construction company reported $3.50 earnings per share for the quarter, topping the consensus estimate of $2.86 by $0.64. The business had revenue of $2.74 billion during the quarter, compared to analyst estimates of $2.50 billion. Toll Brothers had a return on equity of 17.87% and a net margin of 12.95%. The company's revenue was down 3.5% compared to the same quarter last year. During the same period last year, the company posted $3.38 EPS. As a group, equities analysts anticipate that Toll Brothers will post 13.83 EPS for the current fiscal year.

Insider Activity at Toll Brothers

In other Toll Brothers news, CAO Michael J. Grubb sold 500 shares of the firm's stock in a transaction dated Monday, July 14th. The stock was 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 sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Christine Garvey sold 770 shares of Toll Brothers stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $119.82, for a total value of $92,261.40. Following the completion of the transaction, the director directly owned 11,590 shares in the company, valued at approximately $1,388,713.80. This represents a 6.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 3,770 shares of company stock worth $440,586 in the last 90 days. Corporate insiders own 1.54% of the company's stock.

Hedge Funds Weigh In On Toll Brothers

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Greenhaven Associates Inc. grew its stake in shares of Toll Brothers by 0.7% in the 2nd quarter. Greenhaven Associates Inc. now owns 5,601,916 shares of the construction company's stock worth $639,347,000 after buying an additional 39,334 shares during the last quarter. AQR Capital Management LLC boosted 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 period. Dimensional Fund Advisors LP increased its position in shares of Toll Brothers by 21.0% during the first quarter. Dimensional Fund Advisors LP now owns 2,159,289 shares of the construction company's stock worth $227,988,000 after acquiring an additional 375,372 shares during the period. Massachusetts Financial Services Co. MA grew its position in shares of Toll Brothers by 4.0% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 2,011,618 shares of the construction company's stock worth $229,586,000 after buying an additional 78,035 shares during the last quarter. Finally, Norges Bank purchased a new stake in Toll Brothers during the 2nd quarter valued at about $154,782,000. 91.76% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.