Zacks Research Lowers Earnings Estimates for Toll Brothers

Toll Brothers, Inc. (NYSE:TOL - Free Report) - Stock analysts at Zacks Research decreased their Q1 2026 EPS estimates for shares of Toll Brothers in a research report issued to clients and investors on Friday, May 30th. Zacks Research analyst S. Mukherjee now expects that the construction company will post earnings of $2.03 per share for the quarter, down from their previous forecast of $2.12. The consensus estimate for Toll Brothers' current full-year earnings is $13.83 per share. Zacks Research also issued estimates for Toll Brothers' Q4 2026 earnings at $5.29 EPS and Q2 2027 earnings at $3.77 EPS.

Several other research firms also recently weighed in on TOL. The Goldman Sachs Group decreased their price objective on Toll Brothers from $143.00 to $125.00 and set a "neutral" rating for the company in a report on Thursday, February 20th. Raymond James restated a "strong-buy" rating and issued a $130.00 price target (down previously from $145.00) on shares of Toll Brothers in a report on Friday, May 23rd. Wedbush reiterated an "outperform" rating on shares of Toll Brothers in a research note on Tuesday, May 20th. Wells Fargo & Company cut their price objective on shares of Toll Brothers from $130.00 to $125.00 and set an "overweight" rating on the stock in a report on Tuesday. Finally, Bank of America dropped their target price on Toll Brothers from $156.00 to $140.00 and set a "buy" rating on the stock in a research report on Thursday, February 20th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $141.00.

Toll Brothers Stock Up 2.1%

Shares of TOL stock traded up $2.20 during mid-day trading on Monday, hitting $105.51. The stock had a trading volume of 1,187,887 shares, compared to its average volume of 1,829,567. Toll Brothers has a 12-month low of $86.67 and a 12-month high of $169.52. 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 firm's 50-day moving average is $101.06 and its two-hundred day moving average is $119.44. The firm has a market capitalization of $10.54 billion, a P/E ratio of 7.26, a price-to-earnings-growth ratio of 1.02 and a beta of 1.45.

Toll Brothers (NYSE:TOL - Get Free Report) last announced its quarterly earnings results on Tuesday, May 20th. The construction company reported $3.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.86 by $0.64. Toll Brothers had a return on equity of 18.32% and a net margin of 14.03%. The firm had revenue of $2.74 billion during the quarter, compared to analyst estimates of $2.50 billion. During the same quarter in the previous year, the business earned $3.38 earnings per share. Toll Brothers's quarterly 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 issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, April 11th. This represents a $1.00 annualized dividend and a dividend yield of 0.95%. This is an increase from Toll Brothers's previous quarterly dividend of $0.23. Toll Brothers's dividend payout ratio is 7.42%.

Hedge Funds Weigh In On Toll Brothers

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sound Income Strategies LLC increased its stake in Toll Brothers by 84.2% during the 1st quarter. Sound Income Strategies LLC now owns 245 shares of the construction company's stock valued at $26,000 after purchasing an additional 112 shares in the last quarter. Lee Danner & Bass Inc. acquired a new position in shares of Toll Brothers in the 4th quarter valued at $27,000. Promus Capital LLC purchased a new position in Toll Brothers in the 4th quarter worth $29,000. Brooklyn Investment Group raised its stake in Toll Brothers by 52.8% in the 1st quarter. Brooklyn Investment Group now owns 272 shares of the construction company's stock worth $29,000 after acquiring an additional 94 shares during the last quarter. Finally, Larson Financial Group LLC lifted its position in Toll Brothers by 152.6% during the 1st quarter. Larson Financial Group LLC now owns 293 shares of the construction company's stock worth $31,000 after acquiring an additional 177 shares during the period. 91.76% of the stock is owned by hedge funds and other institutional investors.

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.