Zacks Investment Research cut shares of Toll Brothers Inc. (NYSE:TOL) from a buy rating to a hold rating in a research report report published on Wednesday.

According to Zacks, “Toll Brothers came up with a stellar show in the third quarter of fiscal 2017, with both earnings and revenues surpassing analysts’ expectations, given the higher number of homes delivered. Earnings increased 42.6%, while revenues were up 18% year over year. Revenues increased at both the Traditional Home Building and City Living segments, courtesy of a higher number of homes delivered. Deliveries surged 26% in units, and contracts rose 24% in dollars and 26% in units year over year. The third quarter marked the 12th consecutive quarter of year-over-year growth in contract dollars and units, with double-digit increases in each of the last four quarters. The company benefits from strong brand recognition as well as lack of competition in the luxury new home market. However, rising building materials and labor costs are growing concerns for its margin. The company’s adjusted gross margin declined 30 bps in the quarter.”

TOL has been the topic of a number of other research reports. Credit Suisse Group initiated coverage on shares of Toll Brothers in a report on Thursday, June 22nd. They issued a neutral rating and a $39.00 target price on the stock. BidaskClub cut shares of Toll Brothers from a buy rating to a hold rating in a report on Sunday, July 30th. Barclays PLC cut shares of Toll Brothers from an equal weight rating to an underweight rating and set a $37.00 target price on the stock. in a report on Tuesday, July 11th. Zelman & Associates raised shares of Toll Brothers from a hold rating to a buy rating in a report on Wednesday, May 17th. Finally, Royal Bank Of Canada reissued a buy rating and issued a $43.00 target price on shares of Toll Brothers in a report on Monday, May 22nd. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and nine have assigned a buy rating to the company. Toll Brothers has a consensus rating of Hold and an average target price of $40.27.

Toll Brothers (NYSE:TOL) opened at 37.78 on Wednesday. Toll Brothers has a 12 month low of $26.65 and a 12 month high of $41.07. The company’s 50-day moving average price is $39.19 and its 200 day moving average price is $37.08. The firm has a market capitalization of $6.18 billion, a price-to-earnings ratio of 14.13 and a beta of 1.52.

Toll Brothers (NYSE:TOL) last issued its earnings results on Tuesday, August 22nd. The construction company reported $0.87 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.68 by $0.19. Toll Brothers had a net margin of 8.12% and a return on equity of 10.44%. The firm had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.51 billion. During the same quarter last year, the company posted $0.61 earnings per share. Toll Brothers’s revenue was up 18.3% on a year-over-year basis. Analysts predict that Toll Brothers will post $3.15 EPS for the current year.

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The business also recently disclosed a quarterly dividend, which was paid on Friday, July 28th. Investors of record on Friday, July 14th were paid a dividend of $0.08 per share. The ex-dividend date of this dividend was Wednesday, July 12th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.85%. Toll Brothers’s dividend payout ratio is presently 11.90%.

In related news, CFO Martin P. Connor sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, July 7th. The shares were sold at an average price of $40.45, for a total transaction of $80,900.00. Following the transaction, the chief financial officer now owns 34,836 shares in the company, valued at $1,409,116.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Joseph R. Sicree sold 4,500 shares of the firm’s stock in a transaction that occurred on Tuesday, June 13th. The shares were sold at an average price of $38.50, for a total transaction of $173,250.00. Following the transaction, the insider now owns 27,267 shares in the company, valued at approximately $1,049,779.50. The disclosure for this sale can be found here. Insiders have sold 130,500 shares of company stock worth $5,081,221 in the last quarter. Company insiders own 8.78% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Lord Abbett & CO. LLC raised its position in Toll Brothers by 13.0% in the second quarter. Lord Abbett & CO. LLC now owns 137,500 shares of the construction company’s stock worth $5,433,000 after buying an additional 15,800 shares in the last quarter. Toronto Dominion Bank raised its position in Toll Brothers by 5.2% in the second quarter. Toronto Dominion Bank now owns 3,896 shares of the construction company’s stock worth $154,000 after buying an additional 192 shares in the last quarter. Advisory Services Network LLC raised its position in Toll Brothers by 99.9% in the second quarter. Advisory Services Network LLC now owns 6,336 shares of the construction company’s stock worth $250,000 after buying an additional 3,166 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Toll Brothers during the second quarter worth approximately $1,009,000. Finally, WINTON GROUP Ltd raised its position in Toll Brothers by 220.3% in the second quarter. WINTON GROUP Ltd now owns 69,468 shares of the construction company’s stock worth $2,745,000 after buying an additional 47,779 shares in the last quarter. Institutional investors and hedge funds own 80.32% of the company’s stock.

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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Analyst Recommendations for Toll Brothers (NYSE:TOL)

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