According to Zacks, “Shares of Toll Brothers have underperformed its industry year to date. Moreover, earnings estimates for fiscal 2019 and 2020 have declined over the past 30 days, depicting analysts’ concern surrounding the company’s bottom-line growth potential. Declining orders as well as rising building materials and labor costs are pressing concerns for Toll Brothers. Moreover, the company’s expectation for the fiscal second quarter’s deliveries is also a cause of concern. That said, the company remains well positioned to gain from the robust economy, improving demographics and financial health of its affluent customer base. Lack of competition in the luxury new home market is expected to drive growth for Toll Brothers as it enjoys greater pricing power than other homebuilding companies.”
Several other research firms also recently weighed in on TOL. Credit Suisse Group reaffirmed a hold rating and issued a $37.00 price objective on shares of Toll Brothers in a research note on Friday, February 15th. Barclays set a $33.00 price objective on Toll Brothers and gave the company a sell rating in a research note on Thursday, March 28th. Zelman & Associates raised Toll Brothers from a hold rating to a buy rating in a research note on Thursday, March 7th. Raymond James set a $40.00 price objective on Toll Brothers and gave the company a buy rating in a research note on Friday, March 1st. Finally, JPMorgan Chase & Co. downgraded Toll Brothers from a neutral rating to an underweight rating and dropped their price objective for the company from $33.00 to $32.00 in a research note on Thursday, March 7th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and six have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $40.14.
Toll Brothers (NYSE:TOL) last released its quarterly earnings data on Tuesday, February 26th. The construction company reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.13. Toll Brothers had a return on equity of 15.83% and a net margin of 9.93%. The firm had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the business posted $0.83 EPS. Toll Brothers’s quarterly revenue was up 16.0% on a year-over-year basis. On average, equities research analysts expect that Toll Brothers will post 4.37 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, April 26th. Shareholders of record on Friday, April 12th were given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 1.15%. The ex-dividend date was Thursday, April 11th. Toll Brothers’s payout ratio is 9.34%.
In other Toll Brothers news, CFO Martin P. Connor sold 4,000 shares of the firm’s stock in a transaction on Wednesday, April 17th. The stock was sold at an average price of $38.94, for a total transaction of $155,760.00. Following the completion of the transaction, the chief financial officer now owns 72,504 shares of the company’s stock, valued at $2,823,305.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, President Richard T. Hartman sold 10,000 shares of the firm’s stock in a transaction on Wednesday, March 27th. The stock was sold at an average price of $37.18, for a total value of $371,800.00. Following the transaction, the president now directly owns 76,461 shares of the company’s stock, valued at approximately $2,842,819.98. The disclosure for this sale can be found here. Insiders have sold 18,000 shares of company stock valued at $679,320 in the last three months. 9.69% of the stock is currently owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the business. FNY Investment Advisers LLC acquired a new stake in shares of Toll Brothers during the first quarter worth $25,000. Meeder Asset Management Inc. boosted its holdings in shares of Toll Brothers by 694.0% during the fourth quarter. Meeder Asset Management Inc. now owns 794 shares of the construction company’s stock worth $26,000 after purchasing an additional 694 shares during the last quarter. Quadrant Capital Group LLC boosted its holdings in shares of Toll Brothers by 309.0% during the first quarter. Quadrant Capital Group LLC now owns 953 shares of the construction company’s stock worth $32,000 after purchasing an additional 720 shares during the last quarter. Valley National Advisers Inc. acquired a new stake in shares of Toll Brothers during the fourth quarter worth $33,000. Finally, Sandy Spring Bank boosted its holdings in shares of Toll Brothers by 150.1% during the first quarter. Sandy Spring Bank now owns 1,078 shares of the construction company’s stock worth $39,000 after purchasing an additional 647 shares during the last quarter. 81.59% of the stock is owned by institutional investors.
Toll Brothers Company Profile
Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, sells, and arranges finance for detached and attached homes in luxury residential communities in the United States. The company operates in two segments, Traditional Home Building and City Living. It also designs, builds, markets, and sells homes in urban infill markets through Toll Brothers City Living.
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