Toll Brothers (NYSE:TOL) Issues Earnings Results, Beats Expectations By $0.14 EPS

Toll Brothers (NYSE:TOL) announced its quarterly earnings results on Tuesday. The construction company reported $3.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.59 by $0.14, Zacks reports. Toll Brothers had a return on equity of 17.58% and a net margin of 12.64%.The company had revenue of $2.95 billion during the quarter, compared to the consensus estimate of $2.86 billion. During the same period in the prior year, the company earned $3.60 earnings per share. The company’s revenue for the quarter was up 8.0% compared to the same quarter last year.

Toll Brothers Stock Performance

Shares of NYSE TOL opened at $131.3210 on Thursday. Toll Brothers has a 52 week low of $86.67 and a 52 week high of $169.52. The stock has a market capitalization of $12.89 billion, a PE ratio of 9.65, a price-to-earnings-growth ratio of 1.37 and a beta of 1.33. The stock has a 50 day moving average price of $119.62 and a 200 day moving average price of $111.43. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.44 and a current ratio of 4.21.

Toll Brothers Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, July 11th. This represents a $1.00 annualized dividend and a yield of 0.8%. Toll Brothers’s dividend payout ratio is 7.42%.

Insider Activity

In other news, CAO Michael J. Grubb sold 500 shares of the firm’s stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $120.00, for a total value of $60,000.00. Following the completion of the sale, the chief accounting officer directly owned 2,439 shares of the company’s stock, valued at $292,680. This trade represents a 17.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Stephen F. East sold 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $115.33, for a total value of $288,325.00. Following the completion of the sale, the director directly owned 12,787 shares of the company’s stock, valued at approximately $1,474,724.71. The trade was a 16.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 3,770 shares of company stock valued at $440,586 over the last three months. Insiders own 1.54% of the company’s stock.

Institutional Trading of Toll Brothers

Hedge funds have recently made changes to their positions in the business. Ieq Capital LLC increased its stake in shares of Toll Brothers by 643.8% during the second quarter. Ieq Capital LLC now owns 171,066 shares of the construction company’s stock worth $19,524,000 after purchasing an additional 148,066 shares during the period. HRT Financial LP bought a new position in shares of Toll Brothers during the second quarter worth approximately $14,876,000. CANADA LIFE ASSURANCE Co increased its stake in shares of Toll Brothers by 135.3% during the second quarter. CANADA LIFE ASSURANCE Co now owns 221,108 shares of the construction company’s stock worth $25,291,000 after purchasing an additional 127,133 shares during the period. Man Group plc increased its stake in shares of Toll Brothers by 554.1% during the second quarter. Man Group plc now owns 141,622 shares of the construction company’s stock worth $16,163,000 after purchasing an additional 119,972 shares during the period. Finally, Raymond James Financial Inc. increased its stake in shares of Toll Brothers by 29.1% during the second quarter. Raymond James Financial Inc. now owns 318,602 shares of the construction company’s stock worth $36,362,000 after purchasing an additional 71,853 shares during the period. 91.76% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on TOL shares. Evercore ISI restated an “outperform” rating and issued a $169.00 price target (up from $167.00) on shares of Toll Brothers in a report on Thursday, May 22nd. Oppenheimer decreased their price objective on Toll Brothers from $165.00 to $155.00 and set an “outperform” rating for the company in a report on Thursday, May 15th. Barclays reiterated an “underweight” rating on shares of Toll Brothers in a report on Tuesday, May 20th. Bank of America increased their price objective on Toll Brothers from $132.00 to $145.00 and gave the stock a “buy” rating in a report on Tuesday. Finally, Wall Street Zen upgraded Toll Brothers from a “sell” rating to a “hold” rating in a report on Wednesday, May 14th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Toll Brothers presently has an average rating of “Moderate Buy” and an average price target of $142.62.

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.