Truist Financial Upgrades Toll Brothers (NYSE:TOL) to Strong-Buy

Toll Brothers (NYSE:TOL) was upgraded by analysts at Truist Financial to a “strong-buy” rating in a report issued on Tuesday,Zacks.com reports.

TOL has been the topic of a number of other reports. Citizens Jmp reaffirmed a “market outperform” rating and set a $175.00 price target on shares of Toll Brothers in a research note on Wednesday, February 18th. UBS Group increased their target price on Toll Brothers from $181.00 to $198.00 and gave the stock a “buy” rating in a report on Thursday, February 19th. Royal Bank Of Canada boosted their price target on shares of Toll Brothers from $144.00 to $161.00 and gave the company an “outperform” rating in a research note on Thursday, February 19th. Evercore set a $174.00 price objective on shares of Toll Brothers in a research note on Thursday, February 19th. Finally, Zacks Research raised shares of Toll Brothers from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $165.25.

Toll Brothers Price Performance

Toll Brothers stock opened at $153.46 on Tuesday. The stock has a market capitalization of $14.53 billion, a price-to-earnings ratio of 10.96, a PEG ratio of 1.20 and a beta of 1.45. Toll Brothers has a 52-week low of $86.67 and a 52-week high of $168.36. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.62 and a current ratio of 4.57. The stock’s 50 day moving average price is $149.07 and its two-hundred day moving average price is $141.17.

Toll Brothers (NYSE:TOL) last released its earnings results on Tuesday, February 17th. The construction company reported $2.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.14. The company had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $1.86 billion. Toll Brothers had a net margin of 12.26% and a return on equity of 16.83%. Toll Brothers’s quarterly revenue was up 15.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.75 EPS. On average, equities analysts predict that Toll Brothers will post 13.83 earnings per share for the current year.

Insiders Place Their Bets

In other Toll Brothers news, Director Paul E. Shapiro sold 3,965 shares of the firm’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $146.68, for a total value of $581,586.20. Following the completion of the sale, the director directly owned 118,680 shares of the company’s stock, valued at $17,407,982.40. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of the business’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $160.42, for a total value of $7,237,508.72. Following the completion of the sale, the chief executive officer owned 321,256 shares in the company, valued at $51,535,887.52. This represents a 12.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.37% of the company’s stock.

Institutional Investors Weigh In On Toll Brothers

Institutional investors and hedge funds have recently modified their holdings of the company. Price T Rowe Associates Inc. MD increased its stake in Toll Brothers by 2,067.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,303,915 shares of the construction company’s stock worth $446,756,000 after acquiring an additional 3,151,509 shares during the last quarter. Capital World Investors increased its position in shares of Toll Brothers by 51.5% in the third quarter. Capital World Investors now owns 5,187,673 shares of the construction company’s stock worth $716,625,000 after purchasing an additional 1,763,211 shares during the last quarter. Norges Bank purchased a new stake in Toll Brothers in the second quarter valued at approximately $154,782,000. AQR Capital Management LLC lifted its position in Toll Brothers by 83.1% during the second quarter. AQR Capital Management LLC now owns 2,607,993 shares of the construction company’s stock valued at $297,650,000 after purchasing an additional 1,183,304 shares during the last quarter. Finally, Holocene Advisors LP grew its stake in Toll Brothers by 78.0% in the 3rd quarter. Holocene Advisors LP now owns 2,224,289 shares of the construction company’s stock worth $307,263,000 after buying an additional 974,567 shares in the last quarter. 91.76% of the stock is owned by hedge funds and other institutional investors.

Toll Brothers News Roundup

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

• Positive Sentiment: Truist initiated coverage with a “Buy” and a $190 price target (~24% upside from current levels), which can lift demand for the shares by attracting buy-side interest. Toll Brothers Truist Coverage
• Positive Sentiment: Zacks Research raised Q3 EPS estimates for Toll Brothers, signaling some upward revision to near‑term profitability expectations. This supports the case for stronger later‑cycle earnings. Q3 EPS Estimates for Toll Brothers Raised by Zacks Research
• Positive Sentiment: Toll Brothers continues to expand its for-sale pipeline with several community announcements and openings (Tomball, TX; Sellersville, PA; Ridgefield, WA; final townhome availability in Mira Vista, San Diego). These releases indicate ongoing lot absorption and new revenue opportunities in key markets. Tomball, TX announcement Sellersville, PA opening Ridgefield, WA opening Mira Vista, San Diego final homes
• Neutral Sentiment: Zacks maintains an overall “Hold” on TOL and has issued mixed estimate changes (some quarter raises, some cuts). The rating tempers upside from positive guidance but keeps analysts constructive on longer-term earnings. (Source: Zacks research notes summarized by MarketBeat)
• Negative Sentiment: Zacks trimmed near-term EPS forecasts for Q1 2028 and cut Q2 2026 estimates significantly, reflecting moderated expectations for short‑term results — this can pressure the stock if investors focus on near‑term earnings risk.
• Negative Sentiment: Macro headwinds: a Barron’s piece highlights that higher mortgage rates and falling home sales are pressuring builder stocks broadly, a sector-level risk that can weigh on Toll Brothers even if company fundamentals remain solid. Higher Mortgage Rates, Fewer Sales Hit Builder Stocks
• Negative Sentiment: Analyst skepticism: a Seeking Alpha piece argues there isn’t enough conviction to upgrade to a buy, which can slow momentum among more cautious investors. Toll Brothers: Still Not Enough Conviction To Upgrade To A Buy

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.