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.”
TOL has been the subject of several other research reports. Raymond James set a $40.00 price objective on shares of Toll Brothers and gave the company a “buy” rating in a research note on Friday, March 1st. Zelman & Associates upgraded shares of Toll Brothers from a “hold” rating to a “buy” rating in a research note on Thursday, March 7th. Credit Suisse Group restated a “hold” rating and issued a $37.00 price objective on shares of Toll Brothers in a research note on Friday, February 15th. Mizuho downgraded shares of Toll Brothers from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $46.00 to $39.00 in a research note on Wednesday, January 23rd. Finally, JPMorgan Chase & Co. downgraded shares of Toll Brothers from a “neutral” rating to an “underweight” rating and decreased their price objective for the company from $33.00 to $32.00 in a research note on Thursday, March 7th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $40.14.
NYSE TOL traded up $0.25 during trading hours on Wednesday, hitting $38.62. The company had a trading volume of 24,172 shares, compared to its average volume of 1,168,288. The company has a debt-to-equity ratio of 0.74, a current ratio of 7.74 and a quick ratio of 1.21. Toll Brothers has a 1-year low of $28.68 and a 1-year high of $43.83. The company has a market capitalization of $5.54 billion, a PE ratio of 8.20, a P/E/G ratio of 0.98 and a beta of 1.01.
Toll Brothers (NYSE:TOL) last released its quarterly earnings data on Tuesday, February 26th. The construction company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.13. Toll Brothers had a net margin of 9.93% and a return on equity of 15.83%. The company had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm posted $0.83 earnings per share. Toll Brothers’s revenue for the quarter was up 16.0% on a year-over-year basis. On average, research analysts expect that Toll Brothers will post 4.47 earnings per share for the current year.
In other news, CFO Martin P. Connor sold 4,000 shares of the stock in a transaction dated Monday, February 25th. The shares were sold at an average price of $37.94, for a total transaction of $151,760.00. Following the completion of the sale, the chief financial officer now owns 72,504 shares in the company, valued at $2,750,801.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, President Richard T. Hartman sold 10,000 shares of the stock in a transaction dated Wednesday, March 27th. The stock was sold at an average price of $37.18, for a total transaction of $371,800.00. Following the sale, the president now 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 quarter. Insiders own 9.69% of the company’s stock.
Large investors have recently made changes to their positions in the stock. FNY Investment Advisers LLC acquired a new stake in Toll Brothers in the first quarter valued at about $25,000. Meeder Asset Management Inc. lifted its position in Toll Brothers by 694.0% in the fourth quarter. Meeder Asset Management Inc. now owns 794 shares of the construction company’s stock valued at $26,000 after purchasing an additional 694 shares during the period. Quadrant Capital Group LLC lifted its position in Toll Brothers by 309.0% in the first quarter. Quadrant Capital Group LLC now owns 953 shares of the construction company’s stock valued at $32,000 after purchasing an additional 720 shares during the period. Valley National Advisers Inc. acquired a new stake in Toll Brothers in the fourth quarter valued at about $33,000. Finally, Sandy Spring Bank lifted its position in Toll Brothers by 150.1% in the first quarter. Sandy Spring Bank now owns 1,078 shares of the construction company’s stock valued at $39,000 after purchasing an additional 647 shares during the period. Hedge funds and other institutional investors own 81.59% of the company’s stock.
About Toll Brothers
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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