Toll Brothers (NYSE:TOL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage currently has a $50.00 price objective on the construction company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 8.23% from the stock’s previous close.
According to Zacks, “Strong housing demand and lack of competition in the luxury new home market is expected to drive Toll Brothers’ revenues. Also, the 2018 outlook for the U.S. homebuilding industry is quite compelling courtesy of healthy demand and strong economic growth. Meanwhile, Toll Brothers’ shares have gained 42.2% in the last one year, outperforming its industry's gain of 37%. Earnings estimates have moved up for the current year and next over the last 30 days. However, we are also concerned about the escalating building material and labor costs that are proving to be a drag on margins.”
TOL has been the topic of a number of other research reports. KeyCorp upgraded 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. UBS Group initiated coverage on Toll Brothers in a research report on Wednesday, October 25th. They set a “buy” rating and a $50.00 price target on the stock. Royal Bank of Canada reiterated a “buy” rating and set a $45.00 price target on shares of Toll Brothers in a research report on Wednesday, November 15th. Wedbush reiterated a “neutral” rating and set a $40.00 price target (down previously from $45.00) on shares of Toll Brothers in a research report on Wednesday, December 6th. Finally, ValuEngine downgraded Toll Brothers from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, December 5th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $51.19.
Toll Brothers (NYSE:TOL) last issued its quarterly earnings results on Tuesday, December 5th. The construction company reported $1.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.19 by ($0.02). The business had revenue of $2.03 billion for the quarter, compared to analysts’ expectations of $2.09 billion. Toll Brothers had a return on equity of 12.00% and a net margin of 9.21%. The business’s revenue for the quarter was up 9.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.67 EPS. equities research analysts anticipate that Toll Brothers will post 3.97 EPS for the current year.
In related news, CFO Martin P. Connor sold 8,450 shares of the stock in a transaction that occurred on Friday, January 19th. The stock was sold at an average price of $51.76, for a total value of $437,372.00. Following the completion of the sale, the chief financial officer now owns 55,357 shares of the company’s stock, valued at $2,865,278.32. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Richard J. Braemer sold 20,000 shares of the stock in a transaction that occurred on Thursday, December 7th. The shares were sold at an average price of $46.55, for a total value of $931,000.00. Following the completion of the sale, the director now directly owns 82,873 shares of the company’s stock, valued at approximately $3,857,738.15. The disclosure for this sale can be found here. Insiders have sold 135,950 shares of company stock valued at $6,781,012 in the last three months. Insiders own 9.01% of the company’s stock.
Several large investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. increased its holdings in shares of Toll Brothers by 134.8% in the third quarter. JPMorgan Chase & Co. now owns 7,198,069 shares of the construction company’s stock valued at $294,978,000 after purchasing an additional 4,132,120 shares during the last quarter. State Street Corp increased its holdings in shares of Toll Brothers by 0.9% in the second quarter. State Street Corp now owns 6,257,962 shares of the construction company’s stock valued at $247,263,000 after purchasing an additional 53,781 shares during the last quarter. Greenhaven Associates Inc. increased its holdings in shares of Toll Brothers by 1.1% in the third quarter. Greenhaven Associates Inc. now owns 4,075,852 shares of the construction company’s stock valued at $169,026,000 after purchasing an additional 45,886 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in shares of Toll Brothers by 56.1% in the third quarter. Bank of New York Mellon Corp now owns 3,128,341 shares of the construction company’s stock valued at $129,732,000 after purchasing an additional 1,124,409 shares during the last quarter. Finally, Prudential Financial Inc. increased its holdings in shares of Toll Brothers by 19.8% in the third quarter. Prudential Financial Inc. now owns 1,717,119 shares of the construction company’s stock valued at $71,209,000 after purchasing an additional 283,578 shares during the last quarter. 88.12% of the stock is owned by hedge funds and other institutional investors.
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Toll Brothers Company Profile
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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