Zacks Investment Research Downgrades Toll Brothers (TOL) to Hold
Toll Brothers (NYSE:TOL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Toll Brothers missed analysts’ expectations on both earnings and revenues in fourth-quarter fiscal 2017. However, earnings increased 72.6%, while revenues were up 9% year over year, given the higher number of homes delivered. Deliveries increased 9% in units, while contracts surged 20% in dollars and 15% in units on a year-over-year basis. The fourth quarter marked the 13th consecutive quarter of year-over-year growth in contract dollars and units. However, average price of homes delivered remained almost flat year over year during the quarter. Toll Brothers believes prices will further suffer and have an adverse impact year over year on adjusted gross margin. Again, rising building materials and labor costs are growing concerns for its margin. Meanwhile, its shares have underperformed the industry it belongs to on a year-to-date basis.”
TOL has been the subject of several other reports. UBS initiated coverage on shares of Toll Brothers in a report on Wednesday, October 25th. They issued a “buy” rating and a $50.00 target price for the company. BidaskClub cut shares of Toll Brothers from a “hold” rating to a “sell” rating in a report on Friday, August 25th. Royal Bank Of Canada reiterated a “buy” rating and issued a $45.00 target price on shares of Toll Brothers in a report on Wednesday, November 15th. KeyCorp raised shares of Toll Brothers from a “sector weight” rating to an “overweight” rating and increased their price target for the stock from $44.55 to $52.00 in a research report on Thursday, November 2nd. They noted that the move was a valuation call. Finally, MKM Partners increased their price target on shares of Toll Brothers to $54.00 and gave the stock a “buy” rating in a research report on Wednesday, November 29th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and eleven have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $45.33.
Toll Brothers (NYSE:TOL) last announced its earnings results on Tuesday, December 5th. The construction company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.19 by ($0.02). Toll Brothers had a return on equity of 10.44% and a net margin of 8.12%. The firm had revenue of $2.03 billion during the quarter, compared to analyst estimates of $2.09 billion. During the same quarter in the previous year, the business earned $0.67 earnings per share. The business’s quarterly revenue was up 9.3% compared to the same quarter last year. sell-side analysts predict that Toll Brothers will post 3.2 EPS for the current year.
In related news, President Richard T. Hartman sold 20,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 14th. The shares were sold at an average price of $47.00, for a total transaction of $940,000.00. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, President Richard T. Hartman sold 8,537 shares of the firm’s stock in a transaction that occurred on Tuesday, October 31st. The shares were sold at an average price of $46.00, for a total transaction of $392,702.00. Following the transaction, the president now directly owns 27,233 shares in the company, valued at approximately $1,252,718. The disclosure for this sale can be found here. Insiders sold 64,687 shares of company stock valued at $2,840,390 over the last three months. 8.78% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of TOL. Aperio Group LLC raised its position in Toll Brothers by 3.6% during the second quarter. Aperio Group LLC now owns 46,157 shares of the construction company’s stock valued at $1,824,000 after acquiring an additional 1,615 shares in the last quarter. Russell Investments Group Ltd. raised its position in Toll Brothers by 6.8% during the second quarter. Russell Investments Group Ltd. now owns 152,760 shares of the construction company’s stock valued at $6,040,000 after acquiring an additional 9,723 shares in the last quarter. Janney Montgomery Scott LLC raised its position in Toll Brothers by 16.9% during the second quarter. Janney Montgomery Scott LLC now owns 20,032 shares of the construction company’s stock valued at $791,000 after acquiring an additional 2,895 shares in the last quarter. World Asset Management Inc raised its position in Toll Brothers by 1.8% during the second quarter. World Asset Management Inc now owns 10,065 shares of the construction company’s stock valued at $398,000 after acquiring an additional 181 shares in the last quarter. Finally, IFP Advisors Inc raised its position in Toll Brothers by 369.1% during the second quarter. IFP Advisors Inc now owns 2,735 shares of the construction company’s stock valued at $108,000 after acquiring an additional 2,152 shares in the last quarter. 82.52% of the stock is currently owned by hedge funds and other institutional investors.
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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