Toll Brothers (NYSE:TOL) Shares Gap Down on Disappointing Earnings

Toll Brothers Inc. (NYSE:TOL)’s stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $136.20, but opened at $129.45. Toll Brothers shares last traded at $133.7250, with a volume of 938,671 shares.

The construction company reported $4.58 EPS for the quarter, missing the consensus estimate of $4.88 by ($0.30). Toll Brothers had a net margin of 12.64% and a return on equity of 17.42%. The company had revenue of $3.42 billion during the quarter, compared to analyst estimates of $3.32 billion. During the same period in the prior year, the business posted $4.63 EPS. Toll Brothers’s revenue for the quarter was up 2.7% compared to the same quarter last year.

Toll Brothers Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 24th. Stockholders of record on Friday, October 10th were issued a dividend of $0.25 per share. The ex-dividend date was Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. Toll Brothers’s dividend payout ratio (DPR) is currently 7.35%.

Wall Street Analyst Weigh In

Several research firms have issued reports on TOL. Bank of America cut their target price on Toll Brothers from $155.00 to $150.00 and set a “buy” rating for the company in a research note on Friday, October 10th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Toll Brothers in a research note on Wednesday, October 8th. Wells Fargo & Company upped their price objective on shares of Toll Brothers from $140.00 to $150.00 and gave the stock an “overweight” rating in a report on Monday, August 18th. Citigroup lifted their target price on shares of Toll Brothers from $138.00 to $147.00 and gave the company a “neutral” rating in a report on Wednesday, October 1st. Finally, Evercore ISI restated an “in-line” rating and set a $160.00 price target (down from $169.00) on shares of Toll Brothers in a research report on Tuesday, October 7th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $150.21.

Institutional Trading of Toll Brothers

A number of large investors have recently modified their holdings of the stock. Kaufman Rossin Wealth LLC grew its stake in Toll Brothers by 2.3% during the 3rd quarter. Kaufman Rossin Wealth LLC now owns 3,859 shares of the construction company’s stock worth $533,000 after purchasing an additional 86 shares in the last quarter. US Bancorp DE boosted its stake in shares of Toll Brothers by 1.5% in the 3rd quarter. US Bancorp DE now owns 6,110 shares of the construction company’s stock valued at $844,000 after buying an additional 88 shares during the period. Farther Finance Advisors LLC raised its holdings in Toll Brothers by 6.5% in the second quarter. Farther Finance Advisors LLC now owns 1,485 shares of the construction company’s stock valued at $169,000 after acquiring an additional 90 shares in the last quarter. Bessemer Group Inc. lifted its stake in Toll Brothers by 5.9% in the third quarter. Bessemer Group Inc. now owns 1,681 shares of the construction company’s stock worth $233,000 after acquiring an additional 93 shares during the last quarter. Finally, Brooklyn Investment Group increased its position in shares of Toll Brothers by 52.8% in the 1st quarter. Brooklyn Investment Group now owns 272 shares of the construction company’s stock valued at $29,000 after purchasing an additional 94 shares during the last quarter. Hedge funds and other institutional investors own 91.76% of the company’s stock.

Toll Brothers Price Performance

The firm has a market capitalization of $12.98 billion, a price-to-earnings ratio of 9.88, a price-to-earnings-growth ratio of 1.65 and a beta of 1.39. The stock’s fifty day moving average price is $135.01 and its two-hundred day moving average price is $127.81. The company has a current ratio of 4.38, a quick ratio of 0.51 and a debt-to-equity ratio of 0.36.

Toll Brothers Company Profile

Toll Brothers, Inc, together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments.