Zacks Research Predicts Increased Earnings for Toll Brothers

Toll Brothers Inc. (NYSE:TOL) – Equities researchers at Zacks Research increased their Q1 2028 earnings per share (EPS) estimates for Toll Brothers in a research report issued on Tuesday, February 10th. Zacks Research analyst Team now expects that the construction company will post earnings per share of $2.47 for the quarter, up from their prior forecast of $2.46. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Toll Brothers’ current full-year earnings is $13.83 per share. Zacks Research also issued estimates for Toll Brothers’ FY2028 earnings at $16.60 EPS.

Toll Brothers (NYSE:TOL) last announced its quarterly earnings data on Monday, December 8th. The construction company reported $4.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.88 by ($0.30). The company had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.32 billion. Toll Brothers had a return on equity of 16.74% and a net margin of 12.28%.The company’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.63 EPS.

A number of other research analysts also recently commented on the stock. Citizens Jmp started coverage on shares of Toll Brothers in a research report on Wednesday, January 7th. They issued a “market outperform” rating and a $175.00 price objective for the company. The Goldman Sachs Group raised their target price on shares of Toll Brothers from $140.00 to $156.00 and gave the company a “neutral” rating in a research note on Tuesday, January 13th. JPMorgan Chase & Co. reduced their price target on Toll Brothers from $161.00 to $141.00 and set an “overweight” rating for the company in a report on Friday, December 12th. Royal Bank Of Canada cut their price objective on Toll Brothers from $145.00 to $144.00 and set an “outperform” rating for the company in a research report on Wednesday, December 10th. Finally, Wells Fargo & Company lifted their target price on Toll Brothers from $160.00 to $170.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $155.87.

Toll Brothers Price Performance

Shares of TOL opened at $162.38 on Wednesday. The company has a current ratio of 4.38, a quick ratio of 0.64 and a debt-to-equity ratio of 0.34. The company’s fifty day simple moving average is $143.26 and its 200 day simple moving average is $137.78. Toll Brothers has a 1-year low of $86.67 and a 1-year high of $165.62. The company has a market cap of $15.39 billion, a price-to-earnings ratio of 11.97, a PEG ratio of 1.27 and a beta of 1.47.

Toll Brothers Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 9th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, January 9th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. Toll Brothers’s dividend payout ratio (DPR) is currently 7.37%.

Insider Activity

In other news, Director Paul E. Shapiro sold 3,965 shares of the business’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $146.68, for a total value of $581,586.20. Following the completion of the sale, the director owned 118,680 shares of the company’s stock, valued at approximately $17,407,982.40. The trade was a 3.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 1.37% of the company’s stock.

Institutional Trading of Toll Brothers

Several hedge funds and other institutional investors have recently bought and sold shares of TOL. Capital World Investors increased its position in shares of Toll Brothers by 51.5% in the third quarter. Capital World Investors now owns 5,187,673 shares of the construction company’s stock worth $716,625,000 after purchasing an additional 1,763,211 shares during the period. Norges Bank bought a new stake in Toll Brothers during the second quarter worth about $154,782,000. AQR Capital Management LLC grew its stake in Toll Brothers by 83.1% during the second quarter. AQR Capital Management LLC now owns 2,607,993 shares of the construction company’s stock worth $297,650,000 after buying an additional 1,183,304 shares in the last quarter. Holocene Advisors LP increased its holdings in Toll Brothers by 78.0% in the 3rd quarter. Holocene Advisors LP now owns 2,224,289 shares of the construction company’s stock valued at $307,263,000 after buying an additional 974,567 shares during the period. Finally, Victory Capital Management Inc. increased its holdings in Toll Brothers by 209.8% in the 3rd quarter. Victory Capital Management Inc. now owns 917,184 shares of the construction company’s stock valued at $126,700,000 after buying an additional 621,117 shares during the period. Institutional investors and hedge funds own 91.76% of the company’s stock.

Key Stories Impacting Toll Brothers

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Multiple new luxury communities and model-home openings signal continued land-development and sales activity, supporting future revenue growth — recent announcements include Incanta Lago (Henderson, NV). Incanta Lago model-home opening
• Positive Sentiment: New luxury community (Toll Brothers at The Bluffs at Wesley Chapel / Waxhaw, NC) opens with high-priced, limited-inventory homes — supports mix/ASP improvement and brand strength. The Bluffs at Wesley Chapel
• Positive Sentiment: Additional community rollouts (Argyle, TX; Chapel Oaks in Chapel Hill, NC) broaden geographic pipeline and signal ongoing land/build activity across markets. Argyle, Texas community
• Positive Sentiment: Sector tailwinds and bullish commentary — Zacks and other analysts highlight structural supply constraints (“golden handcuffs”) and favorable policy/market dynamics that could boost homebuilder demand in 2026. Why “Golden Handcuffs” are a Gift to Homebuilders
• Neutral Sentiment: TOL shares recently hit a 52‑week high, reflecting recent positive news flow and analyst targets; this can attract momentum traders but also raises short‑term profit-taking risk. 52-week high report
• Neutral Sentiment: Analyst/estimate moves: Zacks lifted near-term EPS forecasts slightly and changed its rating to Hold (from Strong Sell), a modest endorsement but not a full upgrade to Buy—keeps expectations steady. (Zacks research notes)
• Negative Sentiment: Insider selling has been active in recent months (multiple senior executives sold shares), which can concern some investors about insider conviction or tax/liquidity-driven selling. See Quiver summary for details. Insider trading details
• Negative Sentiment: Large institutional reductions (notable funds trimmed or exited positions in recent quarters) could cap upside if selling continues; monitor 13F/quarterly activity. (Quiver institutional holdings summary)

About Toll Brothers

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.