Toll Brothers (TOL) Shares Down 7.4% on Disappointing Earnings

Toll Brothers Inc (NYSE:TOL)’s share price traded down 7.4% on Tuesday following a dissappointing earnings announcement. The stock traded as low as $45.35 and last traded at $46.93. 8,277,047 shares traded hands during trading, an increase of 317% from the average session volume of 1,983,208 shares. The stock had previously closed at $50.66.

The construction company reported $1.17 earnings per share for the quarter, missing analysts’ consensus estimates of $1.19 by ($0.02). Toll Brothers had a net margin of 8.12% and a return on equity of 10.44%. The firm had revenue of $2.03 billion during the quarter, compared to analysts’ expectations of $2.09 billion. During the same quarter last year, the business earned $0.67 earnings per share. The business’s quarterly revenue was up 9.3% on a year-over-year basis.

A number of equities analysts recently weighed in on the stock. MKM Partners lifted their price objective on shares of Toll Brothers to $54.00 and gave the company a “buy” rating in a research report on Wednesday, November 29th. Royal Bank Of Canada reiterated a “buy” rating and issued a $45.00 price objective on shares of Toll Brothers in a research report on Wednesday, November 15th. KeyCorp lowered shares of Toll Brothers to an “overweight” rating in a research report on Tuesday. ValuEngine lowered shares of Toll Brothers from a “strong-buy” rating to a “buy” rating in a research report on Tuesday. Finally, UBS assumed coverage on shares of Toll Brothers in a research report on Wednesday, October 25th. They issued a “buy” rating and a $50.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, six have given a hold rating and eleven have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $44.71.

In other Toll Brothers news, President Richard T. Hartman sold 8,537 shares of the firm’s stock in a transaction on Tuesday, October 31st. The stock was sold at an average price of $46.00, for a total value of $392,702.00. Following the completion of the sale, the president now owns 27,233 shares of the company’s stock, valued at $1,252,718. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, President Richard T. Hartman sold 20,000 shares of the firm’s stock in a transaction on Tuesday, November 14th. The shares were sold at an average price of $47.00, for a total value of $940,000.00. The disclosure for this sale can be found here. In the last three months, insiders sold 64,687 shares of company stock valued at $2,840,390. 8.78% of the stock is owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in the business. Aperio Group LLC raised its stake in shares of Toll Brothers by 3.6% during the 2nd quarter. Aperio Group LLC now owns 46,157 shares of the construction company’s stock worth $1,824,000 after buying an additional 1,615 shares during the last quarter. Russell Investments Group Ltd. raised its stake in shares of Toll Brothers by 6.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 152,760 shares of the construction company’s stock worth $6,040,000 after buying an additional 9,723 shares during the last quarter. Janney Montgomery Scott LLC raised its stake in shares of Toll Brothers by 16.9% during the 2nd quarter. Janney Montgomery Scott LLC now owns 20,032 shares of the construction company’s stock worth $791,000 after buying an additional 2,895 shares during the last quarter. World Asset Management Inc raised its stake in shares of Toll Brothers by 1.8% during the 2nd quarter. World Asset Management Inc now owns 10,065 shares of the construction company’s stock worth $398,000 after buying an additional 181 shares during the last quarter. Finally, IFP Advisors Inc raised its stake in shares of Toll Brothers by 369.1% during the 2nd quarter. IFP Advisors Inc now owns 2,735 shares of the construction company’s stock worth $108,000 after buying an additional 2,152 shares during the last quarter. 82.52% of the stock is owned by institutional investors.

The stock has a market cap of $8,124.77, a P/E ratio of 18.47, a PEG ratio of 1.06 and a beta of 1.57. The company has a quick ratio of 1.10, a current ratio of 6.75 and a debt-to-equity ratio of 0.84.

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About Toll Brothers

Toll Brothers, Inc is engaged in designing, building, marketing, selling and arranging financing for detached and attached homes in luxury residential communities. The Company operates through two segments: Traditional Home Building and Toll Brothers City Living (City Living). Within the Traditional Home Building segment, it operates in five geographic segments in the United States: the North, consisting of Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York; the Mid-Atlantic, consisting of Delaware, Maryland, Pennsylvania and Virginia; the South, consisting of Florida, North Carolina and Texas; the West, consisting of Arizona, Colorado, Nevada and Washington, and California.

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