Toll Brothers (NYSE:TOL) Shares Gap Down on Disappointing Earnings

Toll Brothers Inc. (NYSE:TOL)’s stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $136.20, but opened at $129.45. Toll Brothers shares last traded at $133.7250, with a volume of 938,671 shares.

The construction company reported $4.58 earnings per share for the quarter, missing the consensus estimate of $4.88 by ($0.30). Toll Brothers had a return on equity of 16.74% and a net margin of 12.28%.The business had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.32 billion. During the same period in the prior year, the business earned $4.63 earnings per share. Toll Brothers’s revenue was up 2.7% compared to the same quarter last year.

Toll Brothers Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 24th. Shareholders of record on Friday, October 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, October 10th. Toll Brothers’s payout ratio is presently 7.37%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Bank of America reduced their price objective on shares of Toll Brothers from $155.00 to $150.00 and set a “buy” rating for the company in a research note on Friday, October 10th. UBS Group dropped their target price on Toll Brothers from $183.00 to $181.00 and set a “buy” rating on the stock in a report on Wednesday. Keefe, Bruyette & Woods increased their price target on Toll Brothers from $143.00 to $145.00 and gave the company a “market perform” rating in a research report on Thursday, August 28th. JPMorgan Chase & Co. upgraded Toll Brothers from a “neutral” rating to an “overweight” rating and set a $161.00 price target for the company in a research note on Thursday, December 4th. Finally, Wells Fargo & Company boosted their price target on Toll Brothers from $140.00 to $150.00 and gave the stock an “overweight” rating in a research report on Monday, August 18th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $152.36.

Hedge Funds Weigh In On Toll Brothers

Large investors have recently modified their holdings of the stock. Wiser Advisor Group LLC bought a new stake in shares of Toll Brothers during the 3rd quarter worth about $27,000. Ramirez Asset Management Inc. bought a new position in Toll Brothers in the 3rd quarter valued at about $28,000. Abich Financial Wealth Management LLC bought a new position in Toll Brothers in the 3rd quarter valued at about $28,000. Measured Wealth Private Client Group LLC bought a new position in Toll Brothers in the 3rd quarter valued at about $29,000. Finally, Smithfield Trust Co lifted its position in Toll Brothers by 136.4% during the third quarter. Smithfield Trust Co now owns 260 shares of the construction company’s stock worth $36,000 after acquiring an additional 150 shares during the last quarter. 91.76% of the stock is owned by institutional investors.

Toll Brothers Trading Up 4.2%

The company has a market cap of $13.35 billion, a P/E ratio of 10.22, a PEG ratio of 1.58 and a beta of 1.39. The business has a fifty day moving average price of $134.88 and a 200-day moving average price of $128.09. The company has a quick ratio of 0.51, a current ratio of 4.38 and a debt-to-equity ratio of 0.34.

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.