Zacks Investment Research downgraded shares of Toll Brothers (NYSE:TOL) from a buy rating to a hold rating in a research report report published on Thursday.
According to Zacks, “Shares of Toll Brothers have outperformed its industry over the past three months. Estimates have also been trending upward for the current year over the past 30 days. Robust economy, improving demographics and financial health of its affluent customer base bode well for Toll Brothers. Also, 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. Solid growth in revenues (up 23%) and deliveries (up 16%) in fiscal 2018, following a gain of 12% and 17%, respectively, in fiscal 2017, reflects the health of the luxury new home market. However, escalating building material and labor costs that are proving to be a drag on margins. Again, high mortgage rates dilute the demand for new homes as mortgage loans become expensive.”
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A number of other equities analysts have also recently weighed in on the company. Mizuho cut Toll Brothers from a buy rating to a neutral rating and dropped their price target for the stock from $46.00 to $39.00 in a research note on Wednesday, January 23rd. Credit Suisse Group reissued a hold rating and issued a $37.00 price target on shares of Toll Brothers in a research note on Friday, January 11th. Buckingham Research began coverage on Toll Brothers in a research note on Friday, January 11th. They issued a neutral rating on the stock. Royal Bank of Canada cut Toll Brothers from an outperform rating to a sector perform rating and set a $37.00 price target on the stock. in a research note on Thursday, December 6th. Finally, Wedbush reissued a neutral rating and issued a $36.00 price target (down previously from $44.00) on shares of Toll Brothers in a research note on Tuesday, December 4th. Two analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have issued a buy rating to the stock. Toll Brothers presently has an average rating of Hold and an average target price of $41.64.
NYSE:TOL opened at $36.85 on Thursday. The stock has a market cap of $5.36 billion, a P/E ratio of 7.82, a PEG ratio of 0.49 and a beta of 1.04. Toll Brothers has a 52-week low of $28.68 and a 52-week high of $49.24. The company has a current ratio of 6.83, a quick ratio of 1.27 and a debt-to-equity ratio of 0.78.
Toll Brothers (NYSE:TOL) last released its earnings results on Tuesday, December 4th. The construction company reported $2.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.83 by $0.25. The firm had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.35 billion. Toll Brothers had a return on equity of 15.93% and a net margin of 10.47%. Toll Brothers’s revenue was up 21.1% compared to the same quarter last year. During the same period in the previous year, the company earned $1.17 earnings per share. Sell-side analysts anticipate that Toll Brothers will post 4.76 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 25th. Shareholders of record on Friday, January 11th were given a dividend of $0.11 per share. The ex-dividend date of this dividend was Thursday, January 10th. This represents a $0.44 dividend on an annualized basis and a yield of 1.19%. Toll Brothers’s payout ratio is presently 9.34%.
In other Toll Brothers news, CFO Martin P. Connor sold 12,000 shares of the firm’s stock in a transaction dated Tuesday, February 5th. The stock was sold at an average price of $36.83, for a total transaction of $441,960.00. Following the completion of the sale, the chief financial officer now directly owns 76,504 shares in the company, valued at approximately $2,817,642.32. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Carl B. Marbach sold 3,000 shares of the firm’s stock in a transaction dated Wednesday, January 9th. The stock was sold at an average price of $34.96, for a total value of $104,880.00. Following the sale, the director now owns 86,249 shares of the company’s stock, valued at $3,015,265.04. The disclosure for this sale can be found here. Insiders have sold a total of 28,039 shares of company stock valued at $977,010 over the last 90 days. Corporate insiders own 9.69% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the business. FMR LLC lifted its holdings in shares of Toll Brothers by 1.5% during the 2nd quarter. FMR LLC now owns 8,806,109 shares of the construction company’s stock valued at $325,738,000 after buying an additional 133,116 shares during the last quarter. Advisors Asset Management Inc. lifted its holdings in shares of Toll Brothers by 17.0% during the 2nd quarter. Advisors Asset Management Inc. now owns 15,745 shares of the construction company’s stock valued at $582,000 after buying an additional 2,287 shares during the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Toll Brothers by 9.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 3,490,892 shares of the construction company’s stock valued at $129,127,000 after buying an additional 309,953 shares during the last quarter. United Services Automobile Association lifted its holdings in shares of Toll Brothers by 48.5% during the 2nd quarter. United Services Automobile Association now owns 79,184 shares of the construction company’s stock valued at $2,929,000 after buying an additional 25,855 shares during the last quarter. Finally, MERIAN GLOBAL INVESTORS UK Ltd acquired a new stake in shares of Toll Brothers during the 3rd quarter valued at about $426,000. Hedge funds and other institutional investors own 84.92% of the company’s stock.
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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