Toll Brothers (NYSE:TOL) Shares Gap Down Following Weak Earnings

Toll Brothers, Inc. (NYSE:TOL) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $130.22, but opened at $127.00. Toll Brothers shares last traded at $125.08, with a volume of 320,059 shares.

The construction company reported $3.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.13 by ($0.75). Toll Brothers had a net margin of 13.97% and a return on equity of 21.04%. The business had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter in the prior year, the firm earned $2.85 EPS. The business’s revenue was up 13.2% on a year-over-year basis.

Toll Brothers Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 19th. Investors of record on Friday, April 5th were paid a $0.23 dividend. This is a positive change from Toll Brothers’s previous quarterly dividend of $0.21. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.77%. The ex-dividend date of this dividend was Thursday, April 4th. Toll Brothers’s payout ratio is currently 7.11%.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Keefe, Bruyette & Woods upped their target price on Toll Brothers from $120.00 to $135.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 28th. StockNews.com raised Toll Brothers from a “hold” rating to a “buy” rating in a research report on Tuesday, April 16th. Citigroup upped their target price on Toll Brothers from $138.00 to $139.00 and gave the stock a “neutral” rating in a research report on Friday, May 17th. Wells Fargo & Company upped their price target on Toll Brothers from $142.00 to $150.00 and gave the stock an “overweight” rating in a report on Wednesday, May 15th. Finally, Wedbush reiterated a “neutral” rating and set a $105.00 price target on shares of Toll Brothers in a report on Wednesday. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $116.40.

Insider Buying and Selling at Toll Brothers

In other news, CEO Douglas C. Jr. Yearley sold 50,000 shares of the business’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $118.85, for a total value of $5,942,500.00. Following the completion of the transaction, the chief executive officer now owns 346,382 shares in the company, valued at $41,167,500.70. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other Toll Brothers news, Director Stephen F. East sold 1,500 shares of the business’s stock in a transaction dated Monday, April 15th. The stock was sold at an average price of $119.32, for a total transaction of $178,980.00. Following the completion of the sale, the director now owns 9,389 shares of the company’s stock, valued at $1,120,295.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Douglas C. Jr. Yearley sold 50,000 shares of the business’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $118.85, for a total value of $5,942,500.00. Following the completion of the transaction, the chief executive officer now owns 346,382 shares in the company, valued at $41,167,500.70. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 66,500 shares of company stock worth $7,881,930. 1.54% of the stock is owned by insiders.

Institutional Investors Weigh In On Toll Brothers

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Register Financial Advisors LLC bought a new position in shares of Toll Brothers during the first quarter valued at approximately $26,000. Contravisory Investment Management Inc. purchased a new stake in shares of Toll Brothers during the 1st quarter valued at $34,000. Rise Advisors LLC purchased a new stake in shares of Toll Brothers during the 1st quarter valued at $35,000. Atlantic Edge Private Wealth Management LLC purchased a new stake in shares of Toll Brothers during the 4th quarter valued at $36,000. Finally, Venturi Wealth Management LLC lifted its holdings in shares of Toll Brothers by 35.7% during the 1st quarter. Venturi Wealth Management LLC now owns 399 shares of the construction company’s stock valued at $52,000 after purchasing an additional 105 shares during the last quarter. 91.76% of the stock is currently owned by hedge funds and other institutional investors.

Toll Brothers Price Performance

The company has a market cap of $12.41 billion, a PE ratio of 9.21, a price-to-earnings-growth ratio of 1.09 and a beta of 1.67. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.65 and a current ratio of 4.95. The stock has a 50 day moving average of $123.13 and a 200-day moving average of $107.56.

Toll Brothers Company Profile

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.