Toll Brothers (NYSE:TOL) Shares Gap Down – Time to Sell?

Toll Brothers, Inc. (NYSE:TOL)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $125.72, but opened at $122.51. Toll Brothers shares last traded at $124.24, with a volume of 212,241 shares trading hands.

Analyst Upgrades and Downgrades

TOL has been the subject of a number of research reports. JPMorgan Chase & Co. restated a “neutral” rating and issued a $150.00 price target (down from $166.00) on shares of Toll Brothers in a report on Friday, December 13th. Wells Fargo & Company raised their price objective on shares of Toll Brothers from $163.00 to $170.00 and gave the company an “overweight” rating in a research note on Friday, September 27th. Evercore ISI lifted their price target on Toll Brothers from $181.00 to $184.00 and gave the company an “outperform” rating in a research note on Wednesday, December 11th. Bank of America increased their price objective on Toll Brothers from $160.00 to $165.00 and gave the stock a “buy” rating in a research note on Thursday, September 19th. Finally, Oppenheimer reissued an “outperform” rating and issued a $189.00 price target on shares of Toll Brothers in a research report on Thursday, December 12th. Two analysts have rated the stock with a sell rating, five have given a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $152.53.

Toll Brothers Trading Up 1.3 %

The company has a debt-to-equity ratio of 0.37, a current ratio of 4.92 and a quick ratio of 0.57. The stock has a market capitalization of $12.67 billion, a PE ratio of 8.35, a PEG ratio of 1.00 and a beta of 1.69. The stock’s 50 day simple moving average is $150.89 and its two-hundred day simple moving average is $139.44.

Toll Brothers (NYSE:TOL) last announced its quarterly earnings data on Monday, December 9th. The construction company reported $4.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.34 by $0.29. The business had revenue of $3.33 billion for the quarter, compared to analysts’ expectations of $3.17 billion. Toll Brothers had a return on equity of 19.64% and a net margin of 14.48%. The firm’s quarterly revenue was up 10.4% compared to the same quarter last year. During the same period in the previous year, the business posted $4.11 EPS. On average, sell-side analysts expect that Toll Brothers, Inc. will post 14.57 EPS for the current year.

Toll Brothers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 24th. Investors of record on Friday, January 10th will be paid a $0.23 dividend. The ex-dividend date of this dividend is Friday, January 10th. This represents a $0.92 dividend on an annualized basis and a yield of 0.73%. Toll Brothers’s dividend payout ratio is 6.12%.

Insiders Place Their Bets

In other Toll Brothers news, CEO Douglas C. Jr. Yearley sold 50,000 shares of the business’s stock in a transaction that occurred on Friday, September 27th. The shares were sold at an average price of $154.51, for a total value of $7,725,500.00. Following the completion of the transaction, the chief executive officer now owns 246,382 shares of the company’s stock, valued at $38,068,482.82. The trade was a 16.87 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Paul E. Shapiro sold 3,837 shares of the firm’s stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $134.14, for a total value of $514,695.18. Following the sale, the director now owns 119,937 shares in the company, valued at $16,088,349.18. The trade was a 3.10 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 84,837 shares of company stock worth $13,124,245 over the last 90 days. Corporate insiders own 1.54% of the company’s stock.

Institutional Trading of Toll Brothers

Several hedge funds and other institutional investors have recently bought and sold shares of TOL. Envestnet Portfolio Solutions Inc. bought a new stake in shares of Toll Brothers in the 2nd quarter worth approximately $274,000. Raymond James Financial Services Advisors Inc. lifted its position in shares of Toll Brothers by 16.1% in the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 111,139 shares of the construction company’s stock worth $12,801,000 after purchasing an additional 15,421 shares during the period. Fifth Third Bancorp boosted its position in Toll Brothers by 11.2% during the 2nd quarter. Fifth Third Bancorp now owns 814 shares of the construction company’s stock valued at $94,000 after acquiring an additional 82 shares in the last quarter. Spirit of America Management Corp NY purchased a new stake in Toll Brothers in the second quarter worth $135,000. Finally, SlateStone Wealth LLC purchased a new stake in shares of Toll Brothers in the 2nd quarter worth about $2,177,000. Hedge funds and other institutional investors own 91.76% of the company’s stock.

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.