Toll Brothers Inc. (NYSE:TOL) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Toll Brothers Inc. (NYSE:TOL) has been given an average rating of “Moderate Buy” by the twenty research firms that are covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, four have given a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $166.6667.

Several analysts have weighed in on TOL shares. Evercore reissued an “outperform” rating and set a $191.00 price objective on shares of Toll Brothers in a report on Thursday, August 20th. UBS Group raised their target price on shares of Toll Brothers from $187.00 to $195.00 and gave the company a “buy” rating in a research note on Thursday, August 20th. Benchmark started coverage on shares of Toll Brothers in a research report on Tuesday, June 9th. They set a “buy” rating for the company. Weiss Ratings upgraded shares of Toll Brothers from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, July 17th. Finally, Truist Financial boosted their price target on shares of Toll Brothers from $165.00 to $170.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th.

Toll Brothers Stock Down 2.1%

NYSE TOL opened at $145.05 on Friday. The stock has a fifty day moving average of $151.65 and a 200-day moving average of $146.38. The stock has a market capitalization of $13.56 billion, a P/E ratio of 11.64, a price-to-earnings-growth ratio of 1.21 and a beta of 1.35. Toll Brothers has a 52 week low of $123.14 and a 52 week high of $168.36. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.55 and a current ratio of 4.53.

Toll Brothers (NYSE:TOL) last issued its quarterly earnings results on Tuesday, August 18th. The construction company reported $2.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.93 by $0.04. The business had revenue of $2.66 billion for the quarter, compared to analyst estimates of $2.62 billion. Toll Brothers had a return on equity of 14.21% and a net margin of 11.14%.The firm’s revenue for the quarter was down 9.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.73 earnings per share. On average, equities research analysts forecast that Toll Brothers will post 12.81 EPS for the current year.

Toll Brothers Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Friday, July 10th. Toll Brothers’s payout ratio is currently 8.35%.

More Toll Brothers News

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

• Positive Sentiment: Toll Brothers continues to expand in attractive luxury housing markets, announcing new communities near Dallas, in California, Las Vegas, and Harrison, New York. The developments increase its future selling opportunities and reinforce the company’s premium-market positioning. New Dallas-area community
• Positive Sentiment: The Harrison, New York, project is expected to launch this fall with luxury townhomes priced from approximately $1.6 million, while the Cumming, Georgia, model home is now available for purchase. These announcements could support future orders and revenue, although they are not immediate financial catalysts. Harrison luxury townhome community
• Neutral Sentiment: Recent developments in San Bruno, California, Las Vegas, and other markets demonstrate ongoing geographic growth, but the releases provided no pricing, order, margin, or earnings guidance. Their near-term impact on TOL’s valuation is therefore limited. Las Vegas community announcement
• Negative Sentiment: An analysis argues that Toll Brothers’ earnings per share improved without growth in total earnings, implying that share repurchases or a lower share count—not stronger profitability—supported per-share results. This is concerning because quarterly revenue fell about 9.7% year over year and earnings declined from the prior-year period. Toll Brothers earnings-per-share analysis
• Negative Sentiment: Recent insider activity is also a cautionary signal: company insiders made four reported open-market sales over the past six months and no purchases. The stock is trading below its 50-day moving average and close to its 200-day average, indicating continued investor pressure.

Insider Buying and Selling at Toll Brothers

In other news, COO Robert Parahus sold 7,500 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $149.66, for a total value of $1,122,450.00. Following the transaction, the chief operating officer owned 23,457 shares of the company’s stock, valued at $3,510,574.62. This represents a 24.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the stock in a transaction 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 transaction, the chairman directly owned 321,256 shares in the company, valued at approximately $50,302,264.48. This trade represents a 19.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Toll Brothers

Hedge funds have recently added to or reduced their stakes in the stock. Continuum Advisory LLC bought a new position in Toll Brothers during the second quarter worth about $28,000. Hilton Head Capital Partners LLC increased its stake in shares of Toll Brothers by 65.5% in the 1st quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company’s stock valued at $26,000 after acquiring an additional 74 shares during the last quarter. Wiser Advisor Group LLC bought a new stake in shares of Toll Brothers in the 3rd quarter valued at about $27,000. Pinnacle Holdings LLC acquired a new stake in shares of Toll Brothers in the 4th quarter valued at approximately $27,000. Finally, Measured Wealth Private Client Group LLC acquired a new stake in shares of Toll Brothers in the 3rd quarter valued at approximately $29,000. Institutional investors and hedge funds own 91.76% of the company’s stock.

About Toll Brothers

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.