Toll Brothers (NYSE:TOL) Shares Gap Up Following Earnings Beat

Toll Brothers, Inc. (NYSE:TOL) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $133.52, but opened at $136.94. Toll Brothers shares last traded at $140.71, with a volume of 729,642 shares trading hands.

The construction company reported $3.60 earnings per share for the quarter, beating the consensus estimate of $3.31 by $0.29. The firm had revenue of $2.73 billion during the quarter, compared to analysts’ expectations of $2.71 billion. Toll Brothers had a net margin of 15.07% and a return on equity of 20.91%. The firm’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the previous year, the company earned $3.73 earnings per share.

Toll Brothers Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 19th. Stockholders of record on Friday, July 5th were paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 0.65%. The ex-dividend date of this dividend was Friday, July 5th. Toll Brothers’s dividend payout ratio is presently 6.28%.

Analyst Ratings Changes

A number of equities analysts recently commented on TOL shares. Wedbush reaffirmed a “neutral” rating and issued a $120.00 target price on shares of Toll Brothers in a report on Wednesday. StockNews.com downgraded Toll Brothers from a “buy” rating to a “hold” rating in a research note on Wednesday. Evercore ISI increased their target price on shares of Toll Brothers from $177.00 to $180.00 and gave the stock an “outperform” rating in a report on Monday, July 15th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $142.00 price target on shares of Toll Brothers in a report on Wednesday. Finally, Wells Fargo & Company increased their price objective on shares of Toll Brothers from $150.00 to $160.00 and gave the stock an “overweight” rating in a research note on Thursday. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $136.94.

Insider Transactions at Toll Brothers

In related news, CFO Martin P. Connor sold 16,194 shares of the stock in a transaction on Monday, June 10th. The stock was sold at an average price of $118.74, for a total transaction of $1,922,875.56. Following the sale, the chief financial officer now owns 28,527 shares in the company, valued at approximately $3,387,295.98. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other Toll Brothers news, CFO Martin P. Connor sold 3,806 shares of the company’s stock in a transaction on Wednesday, June 12th. The stock was sold at an average price of $121.84, for a total value of $463,723.04. Following the transaction, the chief financial officer now owns 24,721 shares of the company’s stock, valued at approximately $3,012,006.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Martin P. Connor sold 16,194 shares of Toll Brothers stock in a transaction on Monday, June 10th. The stock was sold at an average price of $118.74, for a total value of $1,922,875.56. Following the sale, the chief financial officer now owns 28,527 shares of the company’s stock, valued at $3,387,295.98. The disclosure for this sale can be found here. Company insiders own 1.54% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TOL. Vanguard Group Inc. raised its position in shares of Toll Brothers by 2.0% in the 4th quarter. Vanguard Group Inc. now owns 11,268,164 shares of the construction company’s stock worth $1,158,255,000 after acquiring an additional 216,849 shares in the last quarter. Greenhaven Associates Inc. raised its holdings in Toll Brothers by 1.0% in the second quarter. Greenhaven Associates Inc. now owns 5,565,787 shares of the construction company’s stock worth $641,067,000 after purchasing an additional 52,893 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Toll Brothers by 0.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,620,912 shares of the construction company’s stock valued at $372,198,000 after buying an additional 14,449 shares during the last quarter. Pacer Advisors Inc. boosted its holdings in shares of Toll Brothers by 34.8% in the 2nd quarter. Pacer Advisors Inc. now owns 2,095,673 shares of the construction company’s stock valued at $241,380,000 after buying an additional 541,140 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Toll Brothers in the 4th quarter worth approximately $128,982,000. 91.76% of the stock is currently owned by institutional investors.

Toll Brothers Stock Performance

The firm’s 50 day moving average is $125.41 and its 200 day moving average is $120.94. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.69 and a current ratio of 4.59. The stock has a market cap of $14.50 billion, a P/E ratio of 9.65, a price-to-earnings-growth ratio of 1.05 and a beta of 1.67.

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.