Toll Brothers (NYSE:TOL) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Friday.

According to Zacks, “Toll Brothers topped the Zacks Consensus Estimate on both earnings and revenues in second-quarter fiscal 2018. The bottom line increased 8.2% and revenues were up 17% year over year, given the higher number of homes delivered. Notably, the reported revenues marked the highest second-quarter total revenues in the company’s history. Deliveries increased 15% in units while contracts surged 18% in dollars and 6% in units on a year-over-year basis. The first quarter marked the 14th consecutive period of year-over-year growth in contract dollars and units. However, its adjusted gross margin suffered by 180 bps in the quarter due to some delayed high-margin California closings, and higher labor and material costs. Meanwhile, shares of Toll Brothers have outperformed the industry it belongs to on a year-to-date basis. That said, earnings estimates have been trending upward for the current and the next fiscal. “

Several other research analysts have also recently weighed in on the stock. Deutsche Bank decreased their price objective on shares of Toll Brothers from $54.00 to $51.00 and set a “buy” rating for the company in a report on Thursday. MKM Partners decreased their price objective on shares of Toll Brothers to $53.00 and set a “buy” rating for the company in a report on Wednesday. Maxim Group reduced their target price on shares of Toll Brothers from $60.00 to $53.00 and set a “buy” rating for the company in a report on Wednesday. Credit Suisse Group reduced their target price on shares of Toll Brothers from $53.00 to $46.00 and set a “neutral” rating for the company in a report on Wednesday. Finally, JPMorgan Chase & Co. reduced their target price on shares of Toll Brothers from $54.00 to $50.00 and set a “neutral” rating for the company in a report on Wednesday. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and twelve have given a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $51.11.

Toll Brothers opened at $40.77 on Friday, according to Marketbeat. The company has a debt-to-equity ratio of 0.81, a current ratio of 6.97 and a quick ratio of 0.89. Toll Brothers has a twelve month low of $36.55 and a twelve month high of $52.73. The company has a market cap of $6.16 billion, a PE ratio of 12.86, a P/E/G ratio of 0.58 and a beta of 1.39.

Toll Brothers (NYSE:TOL) last released its quarterly earnings data on Tuesday, May 22nd. The construction company reported $0.72 earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.04). Toll Brothers had a net margin of 9.27% and a return on equity of 12.50%. The company had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.58 billion. During the same period in the previous year, the firm earned $0.73 earnings per share. The firm’s revenue for the quarter was up 17.3% on a year-over-year basis. research analysts predict that Toll Brothers will post 4.3 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. boosted its position in shares of Toll Brothers by 1.1% in the fourth quarter. BlackRock Inc. now owns 17,225,132 shares of the construction company’s stock worth $827,150,000 after purchasing an additional 187,123 shares during the period. Greenhaven Associates Inc. boosted its position in shares of Toll Brothers by 2.7% in the first quarter. Greenhaven Associates Inc. now owns 4,047,305 shares of the construction company’s stock worth $175,046,000 after purchasing an additional 105,704 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Toll Brothers by 1.8% in the fourth quarter. Bank of New York Mellon Corp now owns 3,183,617 shares of the construction company’s stock worth $152,877,000 after purchasing an additional 55,276 shares during the period. Millennium Management LLC boosted its position in shares of Toll Brothers by 803.5% in the fourth quarter. Millennium Management LLC now owns 2,045,499 shares of the construction company’s stock worth $98,225,000 after purchasing an additional 1,819,100 shares during the period. Finally, Geode Capital Management LLC boosted its position in shares of Toll Brothers by 13.2% in the fourth quarter. Geode Capital Management LLC now owns 2,015,100 shares of the construction company’s stock worth $96,725,000 after purchasing an additional 235,023 shares during the period. Institutional investors and hedge funds own 83.80% of the company’s stock.

About Toll Brothers

Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, and arranges finance for detached and attached homes in luxury residential communities in the United States. The company operates through two segments, Traditional Home Building and City Living. It also builds and sells homes in urban infill markets through Toll Brothers City Living.

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Analyst Recommendations for Toll Brothers (NYSE:TOL)

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