Toll Brothers (NYSE:TOL) Shares Gap Down – Here’s What Happened

Shares of Toll Brothers, Inc. (NYSE:TOL) gapped down prior to trading on Thursday . The stock had previously closed at $125.72, but opened at $122.51. Toll Brothers shares last traded at $124.24, with a volume of 212,241 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have weighed in on TOL shares. Keefe, Bruyette & Woods cut shares of Toll Brothers from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $168.00 to $164.00 in a research note on Tuesday, December 10th. Wedbush reaffirmed an “outperform” rating and set a $175.00 target price on shares of Toll Brothers in a report on Wednesday, December 11th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $150.00 price target (down from $166.00) on shares of Toll Brothers in a research note on Friday, December 13th. Royal Bank of Canada raised their price objective on Toll Brothers from $143.00 to $150.00 and gave the stock an “outperform” rating in a research note on Wednesday, December 11th. Finally, Wells Fargo & Company upped their target price on Toll Brothers from $163.00 to $170.00 and gave the company an “overweight” rating in a research report on Friday, September 27th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $152.53.

Toll Brothers Stock Performance

The company has a current ratio of 4.92, a quick ratio of 0.57 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $12.67 billion, a price-to-earnings ratio of 8.35, a PEG ratio of 1.00 and a beta of 1.69. The stock’s 50-day moving average is $150.89 and its 200-day moving average is $139.44.

Toll Brothers (NYSE:TOL) last announced its quarterly earnings results on Monday, December 9th. The construction company reported $4.63 EPS for the quarter, beating analysts’ consensus estimates of $4.34 by $0.29. The company had revenue of $3.33 billion during the quarter, compared to analysts’ expectations of $3.17 billion. Toll Brothers had a return on equity of 19.64% and a net margin of 14.48%. Toll Brothers’s revenue was up 10.4% compared to the same quarter last year. During the same period in the prior year, the company earned $4.11 EPS. On average, analysts predict that Toll Brothers, Inc. will post 14.57 EPS for the current fiscal year.

Toll Brothers Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 24th. Stockholders of record on Friday, January 10th will be issued a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 0.73%. The ex-dividend date is Friday, January 10th. Toll Brothers’s dividend payout ratio (DPR) is currently 6.12%.

Insider Activity at Toll Brothers

In other news, Director Paul E. Shapiro sold 3,837 shares of the stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $134.14, for a total value of $514,695.18. Following the completion of the sale, the director now owns 119,937 shares of the company’s stock, valued at approximately $16,088,349.18. This represents a 3.10 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Douglas C. Jr. Yearley sold 50,000 shares of Toll Brothers stock in a transaction that occurred on Friday, September 27th. The stock was sold at an average price of $154.51, for a total value of $7,725,500.00. Following the completion of the transaction, the chief executive officer now directly owns 246,382 shares in the company, valued at approximately $38,068,482.82. This represents a 16.87 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 84,837 shares of company stock worth $13,124,245 in the last quarter. 1.54% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in TOL. Capital Performance Advisors LLP acquired a new stake in shares of Toll Brothers during the third quarter worth $27,000. Brooklyn Investment Group acquired a new stake in Toll Brothers during the 3rd quarter worth about $27,000. Larson Financial Group LLC raised its position in shares of Toll Brothers by 57.9% in the 3rd quarter. Larson Financial Group LLC now owns 180 shares of the construction company’s stock worth $28,000 after acquiring an additional 66 shares in the last quarter. UMB Bank n.a. raised its position in shares of Toll Brothers by 323.4% in the 3rd quarter. UMB Bank n.a. now owns 271 shares of the construction company’s stock worth $42,000 after acquiring an additional 207 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its position in shares of Toll Brothers by 202.7% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 333 shares of the construction company’s stock valued at $38,000 after purchasing an additional 223 shares in the last quarter. Institutional investors own 91.76% of the company’s stock.

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.