Toll Brothers (NYSE:TOL) Shares Gap Down - Here's What Happened

Toll Brothers, Inc. (NYSE:TOL - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $150.68, but opened at $140.72. Toll Brothers shares last traded at $140.65, with a volume of 350,685 shares traded.

Wall Street Analyst Weigh In

TOL has been the topic of several analyst reports. Wells Fargo & Company lifted their target price on Toll Brothers from $163.00 to $170.00 and gave the company an "overweight" rating in a research report on Friday, September 27th. StockNews.com lowered shares of Toll Brothers from a "buy" rating to a "hold" rating in a research report on Wednesday, September 11th. Citigroup decreased their price objective on Toll Brothers from $133.00 to $125.00 and set a "neutral" rating for the company in a report on Tuesday, July 2nd. Keefe, Bruyette & Woods reiterated an "outperform" rating and issued a $142.00 target price on shares of Toll Brothers in a research note on Wednesday, August 21st. Finally, Bank of America upped their target price on Toll Brothers from $160.00 to $165.00 and gave the company a "buy" rating in a research report on Thursday, September 19th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $148.87.

Toll Brothers Stock Performance

The company's fifty day simple moving average is $148.26 and its two-hundred day simple moving average is $131.92. The stock has a market cap of $15.12 billion, a price-to-earnings ratio of 9.61, a P/E/G ratio of 1.20 and a beta of 1.66. The company has a debt-to-equity ratio of 0.38, a current ratio of 4.52 and a quick ratio of 0.57.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings results on Tuesday, August 20th. The construction company reported $3.60 EPS for the quarter, topping analysts' consensus estimates of $3.31 by $0.29. Toll Brothers had a net margin of 14.63% and a return on equity of 19.82%. The firm had revenue of $2.73 billion for the quarter, compared to analyst estimates of $2.71 billion. During the same quarter in the prior year, the firm earned $3.73 EPS. The business's revenue for the quarter was up 1.5% compared to the same quarter last year. On average, analysts forecast that Toll Brothers, Inc. will post 13.53 earnings per share for the current year.

Toll Brothers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 25th. Investors of record on Friday, October 11th were issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.62%. The ex-dividend date of this dividend was Friday, October 11th. Toll Brothers's payout ratio is 6.28%.

Insiders Place Their Bets

In related news, CEO Douglas C. Jr. Yearley sold 25,000 shares of the firm's stock in a transaction on Wednesday, October 16th. The shares were sold at an average price of $158.23, for a total value of $3,955,750.00. Following the completion of the transaction, the chief executive officer now directly owns 221,382 shares of the company's stock, valued at approximately $35,029,273.86. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, CFO Martin P. Connor sold 5,000 shares of Toll Brothers stock in a transaction that occurred on Friday, September 27th. The shares were sold at an average price of $155.44, for a total transaction of $777,200.00. Following the completion of the transaction, the chief financial officer now directly owns 9,721 shares of the company's stock, valued at $1,511,032.24. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Douglas C. Jr. Yearley sold 25,000 shares of the stock in a transaction on Wednesday, October 16th. The shares were sold at an average price of $158.23, for a total value of $3,955,750.00. Following the completion of the transaction, the chief executive officer now directly owns 221,382 shares of the company's stock, valued at approximately $35,029,273.86. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 216,257 shares of company stock worth $32,602,152. Company insiders own 1.54% of the company's stock.

Institutional Trading of Toll Brothers

Hedge funds have recently made changes to their positions in the business. First Trust Direct Indexing L.P. grew its stake in Toll Brothers by 1.4% during the 3rd quarter. First Trust Direct Indexing L.P. now owns 5,089 shares of the construction company's stock worth $786,000 after buying an additional 72 shares during the last quarter. Fifth Third Bancorp increased its position in shares of Toll Brothers by 11.2% in the second quarter. Fifth Third Bancorp now owns 814 shares of the construction company's stock worth $94,000 after acquiring an additional 82 shares in the last quarter. First Citizens Bank & Trust Co. boosted its position in Toll Brothers by 3.7% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 2,351 shares of the construction company's stock valued at $363,000 after buying an additional 83 shares during the last quarter. Clifford Swan Investment Counsel LLC lifted its position in shares of Toll Brothers by 5.1% during the second quarter. Clifford Swan Investment Counsel LLC now owns 1,839 shares of the construction company's stock worth $212,000 after purchasing an additional 89 shares during the last quarter. Finally, J.Safra Asset Management Corp lifted its holdings in shares of Toll Brothers by 21.5% in the 2nd quarter. J.Safra Asset Management Corp now owns 509 shares of the construction company's stock worth $59,000 after purchasing an additional 90 shares during the last quarter. Institutional investors and hedge funds own 91.76% of the company's stock.

About Toll Brothers

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.