Keefe, Bruyette & Woods Downgrades Toll Brothers (NYSE:TOL) to Market Perform

Toll Brothers (NYSE:TOL) was downgraded by stock analysts at Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating in a research report issued to clients and investors on Tuesday, MarketBeat reports. They currently have a $164.00 price objective on the construction company’s stock, down from their prior price objective of $168.00. Keefe, Bruyette & Woods’ price objective indicates a potential upside of 15.14% from the company’s current price.

Several other research firms have also recently issued reports on TOL. Barclays increased their target price on shares of Toll Brothers from $116.00 to $135.00 and gave the stock an “underweight” rating in a research note on Thursday, August 22nd. Bank of America increased their price objective on Toll Brothers from $160.00 to $165.00 and gave the stock a “buy” rating in a research report on Thursday, September 19th. Wells Fargo & Company boosted their target price on Toll Brothers from $163.00 to $170.00 and gave the stock an “overweight” rating in a research report on Friday, September 27th. Wedbush reaffirmed an “outperform” rating and issued a $175.00 price target on shares of Toll Brothers in a report on Monday, December 2nd. Finally, Royal Bank of Canada boosted their price objective on Toll Brothers from $130.00 to $143.00 and gave the stock an “outperform” rating in a report on Thursday, August 22nd. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $151.07.

Toll Brothers Price Performance

Toll Brothers stock opened at $142.43 on Tuesday. The firm has a market capitalization of $14.38 billion, a P/E ratio of 9.82, a PEG ratio of 1.16 and a beta of 1.69. Toll Brothers has a one year low of $91.92 and a one year high of $169.52. The company has a debt-to-equity ratio of 0.38, a current ratio of 4.52 and a quick ratio of 0.57. The business has a fifty day moving average price of $153.71 and a 200-day moving average price of $139.09.

Toll Brothers (NYSE:TOL) last issued its quarterly earnings data on Monday, December 9th. The construction company reported $4.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.34 by $0.29. Toll Brothers had a return on equity of 19.82% and a net margin of 14.63%. The business had revenue of $3.33 billion for the quarter, compared to analysts’ expectations of $3.17 billion. During the same quarter in the prior year, the firm posted $4.11 EPS. The firm’s quarterly revenue was up 10.4% on a year-over-year basis. As a group, equities research analysts forecast that Toll Brothers will post 13.52 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Martin P. Connor sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, September 27th. The shares were sold at an average price of $155.44, for a total value of $777,200.00. Following the completion of the transaction, the chief financial officer now directly owns 9,721 shares in the company, valued at $1,511,032.24. The trade was a 33.97 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Douglas C. Jr. Yearley sold 50,000 shares of the stock in a transaction on Friday, September 27th. The shares were sold at an average price of $154.51, for a total value of $7,725,500.00. Following the sale, the chief executive officer now 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. In the last 90 days, insiders sold 106,000 shares of company stock worth $16,435,800. 1.54% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of TOL. Capital Performance Advisors LLP purchased a new stake in Toll Brothers during the 3rd quarter valued at $27,000. Brooklyn Investment Group purchased a new stake in Toll Brothers during the third quarter valued at $27,000. Larson Financial Group LLC lifted its holdings in Toll Brothers by 57.9% in the third quarter. Larson Financial Group LLC now owns 180 shares of the construction company’s stock valued at $28,000 after acquiring an additional 66 shares during the period. UMB Bank n.a. boosted its position in Toll Brothers by 323.4% in the third quarter. UMB Bank n.a. now owns 271 shares of the construction company’s stock worth $42,000 after purchasing an additional 207 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its stake in shares of Toll Brothers by 202.7% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 333 shares of the construction company’s stock worth $38,000 after purchasing an additional 223 shares during the period. 91.76% of the stock is owned by institutional investors.

About Toll Brothers

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.