Toll Brothers (NYSE:TOL) Issues Earnings Results

Toll Brothers (NYSE:TOL) posted its quarterly earnings results on Tuesday. The construction company reported $2.97 EPS for the quarter, beating the consensus estimate of $2.93 by $0.04, FiscalAI reports. Toll Brothers had a net margin of 11.66% and a return on equity of 15.47%. The business had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.62 billion. During the same quarter in the previous year, the business posted $3.73 EPS. The company’s quarterly revenue was down 9.7% compared to the same quarter last year.

Toll Brothers Stock Performance

TOL opened at $142.51 on Wednesday. The company has a market cap of $13.32 billion, a P/E ratio of 10.78, a price-to-earnings-growth ratio of 1.23 and a beta of 1.35. The company has a quick ratio of 0.59, a current ratio of 4.67 and a debt-to-equity ratio of 0.33. The firm’s 50-day moving average price is $151.81 and its 200-day moving average price is $146.41. Toll Brothers has a 52-week low of $123.14 and a 52-week high of $168.36.

Toll Brothers Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were issued a dividend of $0.26 per share. The ex-dividend date was Friday, July 10th. This represents a $1.04 annualized dividend and a dividend yield of 0.7%. Toll Brothers’s dividend payout ratio is 7.87%.

Toll Brothers News Summary

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal third-quarter diluted EPS was $2.97, above the $2.93 consensus estimate, while revenue of approximately $2.66 billion topped forecasts near $2.62 billion. Toll Brothers Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management maintained its outlook and increased capital returns. Toll Brothers reaffirmed fiscal 2026 guidance and raised its projected share-repurchase authorization to $700 million from $650 million. The company repurchased about 1.4 million shares for $206.8 million during the quarter. Toll Brothers Reports FY 2026 Third Quarter Results
• Positive Sentiment: Contract activity improved. Net signed contract value rose to $2.52 billion from $2.41 billion a year earlier, and the company ended the quarter with a $6.24 billion backlog covering 5,312 homes. Fourth-quarter delivery guidance calls for 3,450 to 3,550 homes. Toll Brothers Reports Third-Quarter Net Income
• Neutral Sentiment: Toll Brothers’ luxury-focused customer base, with homes averaging roughly $1 million, may provide some protection from weakness in the broader housing market, although mortgage rates and bond yields remain important risks. Toll Brothers Earnings Will Offer Read on Luxury Home Demand
• Negative Sentiment: Underlying operating trends weakened. Home deliveries fell to 2,662 from 2,959 a year earlier, revenue declined 9.7% year over year, and EPS dropped from $3.73. Home-sales gross margin narrowed to 23.9% from 25.6%, while operating income fell to $359.2 million from $487.7 million. Toll Brothers Records Lower Sales as Home Deliveries Decline
• Negative Sentiment: Affordability challenges and higher mortgage rates continue to weigh on demand, while a judge temporarily blocked construction tied to a disputed easement near Ann Arbor. Recent insider activity also showed selling with no reported purchases, adding a modest negative signal.

Analysts Set New Price Targets

Several brokerages have issued reports on TOL. Argus set a $170.00 target price on Toll Brothers in a research report on Tuesday, June 2nd. Barclays upped their price objective on Toll Brothers from $115.00 to $122.00 and gave the stock an “underweight” rating in a research note on Tuesday, July 14th. Citigroup upgraded Toll Brothers from a “neutral” rating to a “buy” rating and lifted their target price for the company from $146.00 to $176.00 in a research note on Friday, July 10th. Truist Financial decreased their price target on shares of Toll Brothers from $170.00 to $165.00 and set a “buy” rating for the company in a research report on Thursday, May 21st. Finally, Benchmark initiated coverage on shares of Toll Brothers in a report on Tuesday, June 9th. They issued a “buy” rating on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $164.88.

Insider Buying and Selling

In related news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of Toll Brothers stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $156.58, for a total value of $12,206,507.06. Following the completion of the sale, the chairman directly owned 321,256 shares in the company, valued at $50,302,264.48. This trade represents a 19.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Robert Parahus sold 7,500 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $149.66, for a total transaction of $1,122,450.00. Following the sale, the chief operating officer directly owned 23,457 shares in the company, valued at approximately $3,510,574.62. This represents a 24.23% decrease in their position. The SEC filing for this sale provides additional information. 1.37% of the stock is owned by company insiders.

Hedge Funds Weigh In On Toll Brothers

Several hedge funds have recently made changes to their positions in TOL. Sivia Capital Partners LLC purchased a new position in Toll Brothers during the second quarter valued at approximately $705,000. UMB Bank n.a. boosted its position in Toll Brothers by 9.9% in the 4th quarter. UMB Bank n.a. now owns 1,228 shares of the construction company’s stock worth $166,000 after purchasing an additional 111 shares in the last quarter. Insigneo Advisory Services LLC acquired a new stake in shares of Toll Brothers during the 4th quarter worth approximately $208,000. J.Safra Asset Management Corp purchased a new position in shares of Toll Brothers during the 4th quarter valued at approximately $87,000. Finally, Fox Run Management L.L.C. purchased a new position in shares of Toll Brothers during the 4th quarter valued at approximately $204,000. 91.76% of the stock is owned by institutional investors and hedge funds.

Toll Brothers Company Profile

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.