Toll Brothers (NYSE:TOL) Shares Gap Down Following Weak Earnings

Toll Brothers, Inc. (NYSE:TOL - Get Free Report) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $122.05, but opened at $112.49. Toll Brothers shares last traded at $114.83, with a volume of 764,226 shares traded.

The construction company reported $1.75 earnings per share for the quarter, missing analysts' consensus estimates of $1.99 by ($0.24). The company had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.91 billion. Toll Brothers had a net margin of 14.03% and a return on equity of 18.32%.

Toll Brothers Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 24th. Investors of record on Friday, January 10th were paid a $0.23 dividend. The ex-dividend date of this dividend was Friday, January 10th. This represents a $0.92 dividend on an annualized basis and a yield of 0.83%. Toll Brothers's dividend payout ratio is currently 6.33%.

Wall Street Analyst Weigh In

TOL has been the topic of a number of research analyst reports. UBS Group cut their target price on Toll Brothers from $185.00 to $183.00 and set a "buy" rating on the stock in a research report on Thursday. Bank of America dropped their price objective on shares of Toll Brothers from $156.00 to $140.00 and set a "buy" rating on the stock in a research note on Thursday. JPMorgan Chase & Co. restated a "neutral" rating and issued a $150.00 target price (down previously from $166.00) on shares of Toll Brothers in a research note on Friday, December 13th. Barclays dropped their price target on shares of Toll Brothers from $135.00 to $115.00 and set an "underweight" rating on the stock in a research note on Thursday, January 16th. Finally, Oppenheimer reduced their price objective on shares of Toll Brothers from $189.00 to $165.00 and set an "outperform" rating for the company in a research report on Thursday. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $150.86.

Insider Activity

In other Toll Brothers news, Director Paul E. Shapiro sold 3,837 shares of the firm's stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $134.14, for a total transaction of $514,695.18. Following the completion of the sale, the director now owns 119,937 shares in the company, valued at $16,088,349.18. This trade represents a 3.10 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Christine Garvey sold 204 shares of the company's stock in a transaction that occurred on Monday, December 30th. The shares were sold at an average price of $125.78, for a total value of $25,659.12. Following the completion of the transaction, the director now directly owns 7,728 shares in the company, valued at approximately $972,027.84. The trade was a 2.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 15,202 shares of company stock worth $1,947,436. 1.54% of the stock is currently owned by corporate insiders.

Institutional Trading of Toll Brothers

Several institutional investors have recently added to or reduced their stakes in the stock. Creative Planning raised its stake in shares of Toll Brothers by 11.5% in the 3rd quarter. Creative Planning now owns 10,323 shares of the construction company's stock valued at $1,595,000 after purchasing an additional 1,063 shares in the last quarter. Bleakley Financial Group LLC acquired a new stake in Toll Brothers during the third quarter valued at approximately $265,000. Blue Trust Inc. lifted its holdings in Toll Brothers by 111.4% during the 3rd quarter. Blue Trust Inc. now owns 353 shares of the construction company's stock worth $55,000 after buying an additional 186 shares during the last quarter. OLD National Bancorp IN acquired a new position in shares of Toll Brothers in the 3rd quarter worth approximately $207,000. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Toll Brothers by 74.8% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 582 shares of the construction company's stock valued at $90,000 after acquiring an additional 249 shares during the last quarter. 91.76% of the stock is owned by institutional investors and hedge funds.

Toll Brothers Stock Performance

The company has a 50-day moving average of $129.02 and a 200-day moving average of $141.40. The firm has a market capitalization of $11.13 billion, a price-to-earnings ratio of 7.67, a price-to-earnings-growth ratio of 0.99 and a beta of 1.76. The company has a current ratio of 4.65, a quick ratio of 0.80 and a debt-to-equity ratio of 0.35.

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.