Toll Brothers Inc. (TOL) Downgraded to Hold at Zacks Investment Research
Toll Brothers Inc. (NYSE:TOL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Toll Brothers came up with a stellar show in the third quarter of fiscal 2017, with both earnings and revenues surpassing analysts’ expectations, given the higher number of homes delivered. Earnings increased 42.6%, while revenues were up 18% year over year. Revenues increased at both the Traditional Home Building and City Living segments, courtesy of a higher number of homes delivered. Deliveries surged 26% in units, and contracts rose 24% in dollars and 26% in units year over year. The third quarter marked the 12th consecutive quarter of year-over-year growth in contract dollars and units, with double-digit increases in each of the last four quarters. The company benefits from strong brand recognition as well as lack of competition in the luxury new home market. However, rising building materials and labor costs are growing concerns for its margin. The company’s adjusted gross margin declined 30 bps in the quarter.”
Other equities research analysts have also issued reports about the company. Bank of America Corporation reissued a “buy” rating and issued a $43.00 price target (up from $40.00) on shares of Toll Brothers in a research report on Wednesday, May 24th. BidaskClub lowered Toll Brothers from a “strong-buy” rating to a “buy” rating in a research report on Monday, July 24th. Buckingham Research lowered Toll Brothers from a “buy” rating to a “neutral” rating in a research report on Wednesday, May 24th. They noted that the move was a valuation call. Mizuho began coverage on Toll Brothers in a research report on Tuesday, May 16th. They set a “buy” rating and a $44.00 target price for the company. Finally, Wedbush reaffirmed a “neutral” rating and set a $37.00 target price (down from $40.00) on shares of Toll Brothers in a research report on Tuesday. One research analyst has rated the stock with a sell rating, eight have given a hold rating and nine have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $39.67.
Toll Brothers (TOL) traded up 0.335% during mid-day trading on Wednesday, hitting $37.395. 2,029,499 shares of the company traded hands. Toll Brothers has a one year low of $26.65 and a one year high of $41.07. The stock has a market capitalization of $6.12 billion, a price-to-earnings ratio of 15.421 and a beta of 1.52. The company’s 50-day moving average is $39.41 and its 200-day moving average is $36.99.
Toll Brothers (NYSE:TOL) last released its quarterly earnings results on Tuesday, August 22nd. The construction company reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.19. The business had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.51 billion. Toll Brothers had a return on equity of 9.71% and a net margin of 7.67%. Toll Brothers’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.61 EPS. Analysts predict that Toll Brothers will post $3.15 EPS for the current year.
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In other news, CEO Douglas C. Jr. Yearley sold 4,155 shares of the stock in a transaction on Friday, July 7th. The stock was sold at an average price of $39.92, for a total transaction of $165,867.60. Following the completion of the transaction, the chief executive officer now owns 176,372 shares in the company, valued at approximately $7,040,770.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Martin P. Connor sold 2,000 shares of the stock in a transaction on Friday, June 2nd. The stock was sold at an average price of $38.45, for a total value of $76,900.00. Following the transaction, the chief financial officer now owns 34,836 shares of the company’s stock, valued at approximately $1,339,444.20. The disclosure for this sale can be found here. Insiders have sold a total of 403,533 shares of company stock valued at $15,456,475 in the last quarter. 8.78% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Teachers Advisors LLC increased its position in Toll Brothers by 3.9% in the fourth quarter. Teachers Advisors LLC now owns 155,082 shares of the construction company’s stock valued at $4,808,000 after buying an additional 5,830 shares during the last quarter. Macquarie Group Ltd. increased its position in Toll Brothers by 17.9% in the fourth quarter. Macquarie Group Ltd. now owns 3,300 shares of the construction company’s stock valued at $102,000 after buying an additional 500 shares during the last quarter. Gulf International Bank UK Ltd increased its position in Toll Brothers by 1.1% in the first quarter. Gulf International Bank UK Ltd now owns 50,244 shares of the construction company’s stock valued at $1,814,000 after buying an additional 525 shares during the last quarter. Bank of Montreal Can increased its position in Toll Brothers by 6.8% in the first quarter. Bank of Montreal Can now owns 273,393 shares of the construction company’s stock valued at $9,872,000 after buying an additional 17,330 shares during the last quarter. Finally, Capstone Asset Management Co. increased its position in Toll Brothers by 4.4% in the first quarter. Capstone Asset Management Co. now owns 16,545 shares of the construction company’s stock valued at $597,000 after buying an additional 690 shares during the last quarter. Institutional investors own 80.32% of the company’s stock.
About Toll Brothers
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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