Toll Brothers (TOL) Lifted to “Buy” at Zacks Investment Research

Toll Brothers (NYSE:TOL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday, February 6th. The brokerage currently has a $50.00 target price on the construction company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 7.55% from the company’s previous close.

According to Zacks, “Strong housing demand and lack of competition in the luxury new home market is expected to drive Toll Brothers’ revenues. Also, the 2018 outlook for the U.S. homebuilding industry is quite compelling courtesy of healthy demand and strong economic growth. Meanwhile, Toll Brothers’ shares have gained 42.2% in the last one year, outperforming its industry's gain of 37%. Earnings estimates have moved up for the current year and next over the last 30 days. However, we are also concerned about the escalating building material and labor costs that are proving to be a drag on margins.”

Other research analysts have also issued reports about the company. Royal Bank of Canada reissued a “buy” rating and issued a $45.00 price objective on shares of Toll Brothers in a report on Wednesday, November 15th. ValuEngine downgraded Toll Brothers from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, December 5th. Wells Fargo & Co restated an “outperform” rating and issued a $54.00 target price (up previously from $42.00) on shares of Toll Brothers in a research note on Wednesday, December 6th. Keefe, Bruyette & Woods restated a “hold” rating and issued a $55.00 target price on shares of Toll Brothers in a research note on Wednesday, January 24th. Finally, Credit Suisse Group reiterated a “neutral” rating and set a $56.00 price target (up previously from $45.00) on shares of Toll Brothers in a research report on Monday, January 22nd. They noted that the move was a valuation call. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. Toll Brothers presently has a consensus rating of “Buy” and a consensus target price of $51.19.

Shares of Toll Brothers (NYSE TOL) opened at $46.49 on Tuesday. Toll Brothers has a 1-year low of $31.05 and a 1-year high of $52.73. The firm has a market capitalization of $7,008.62, a price-to-earnings ratio of 14.57, a price-to-earnings-growth ratio of 0.82 and a beta of 1.38. The company has a debt-to-equity ratio of 0.71, a current ratio of 6.61 and a quick ratio of 0.97.

Toll Brothers (NYSE:TOL) last issued its quarterly earnings data on Tuesday, December 5th. 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 return on equity of 12.00% and a net margin of 9.21%. The company had revenue of $2.03 billion for the quarter, compared to analysts’ expectations of $2.09 billion. During the same quarter last year, the company earned $0.67 earnings per share. The company’s revenue for the quarter was up 9.3% compared to the same quarter last year. sell-side analysts predict that Toll Brothers will post 4.08 earnings per share for the current fiscal year.

In other Toll Brothers news, CEO Douglas C. Jr. Yearley sold 10,000 shares of Toll Brothers stock in a transaction dated Tuesday, January 9th. The stock was sold at an average price of $52.08, for a total transaction of $520,800.00. Following the completion of the sale, the chief executive officer now directly owns 211,785 shares of the company’s stock, valued at approximately $11,029,762.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Martin P. Connor sold 12,000 shares of Toll Brothers stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $51.83, for a total value of $621,960.00. Following the sale, the chief financial officer now owns 55,357 shares in the company, valued at approximately $2,869,153.31. The disclosure for this sale can be found here. Over the last quarter, insiders sold 115,950 shares of company stock valued at $5,841,012. 8.78% of the stock is currently owned by company insiders.

A number of hedge funds have recently modified their holdings of TOL. Parametric Portfolio Associates LLC increased its position in Toll Brothers by 6.3% in the 2nd quarter. Parametric Portfolio Associates LLC now owns 253,808 shares of the construction company’s stock valued at $10,028,000 after acquiring an additional 15,050 shares during the period. QS Investors LLC increased its position in Toll Brothers by 62.9% in the 2nd quarter. QS Investors LLC now owns 8,092 shares of the construction company’s stock valued at $320,000 after acquiring an additional 3,126 shares during the period. AHL Partners LLP acquired a new position in Toll Brothers in the 2nd quarter valued at about $282,000. Macquarie Group Ltd. increased its position in Toll Brothers by 1,256.3% during the 2nd quarter. Macquarie Group Ltd. now owns 36,620 shares of the construction company’s stock worth $1,445,000 after purchasing an additional 33,920 shares during the period. Finally, Janus Henderson Group PLC increased its position in Toll Brothers by 75.1% during the 2nd quarter. Janus Henderson Group PLC now owns 38,235 shares of the construction company’s stock worth $1,511,000 after purchasing an additional 16,400 shares during the period. Hedge funds and other institutional investors own 88.11% of the company’s stock.

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Toll Brothers Company Profile

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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