Zacks Investment Research Downgrades Toll Brothers (TOL) to Hold
Toll Brothers (NYSE:TOL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Toll Brothers missed analysts’ expectations on both earnings and revenues in fourth-quarter fiscal 2017. However, earnings increased 72.6%, while revenues were up 9% year over year, given the higher number of homes delivered. Deliveries increased 9% in units, while contracts surged 20% in dollars and 15% in units on a year-over-year basis. The fourth quarter marked the 13th consecutive quarter of year-over-year growth in contract dollars and units. However, average price of homes delivered remained almost flat year over year during the quarter. Toll Brothers believes prices will further suffer and have an adverse impact year over year on adjusted gross margin. Again, rising building materials and labor costs are growing concerns for its margin. Meanwhile, its shares have underperformed the industry it belongs to on a year-to-date basis.”
A number of other research analysts have also recently issued reports on TOL. ValuEngine cut Toll Brothers from a “strong-buy” rating to a “buy” rating in a research note on Tuesday. Wells Fargo & Company reiterated an “outperform” rating and set a $54.00 price objective (up previously from $42.00) on shares of Toll Brothers in a research note on Wednesday. KeyCorp reiterated a “hold” rating on shares of Toll Brothers in a research note on Tuesday, September 26th. MKM Partners lifted their price objective on Toll Brothers to $54.00 and gave the company a “buy” rating in a research note on Wednesday, November 29th. Finally, Keefe, Bruyette & Woods reiterated a “hold” rating and set a $40.00 price objective on shares of Toll Brothers in a research note on Thursday, August 24th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and eleven have assigned a buy rating to the stock. Toll Brothers has a consensus rating of “Hold” and a consensus target price of $46.93.
Toll Brothers (NYSE:TOL) last released its quarterly earnings results on Tuesday, December 5th. The construction company reported $1.17 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.19 by ($0.02). Toll Brothers had a net margin of 9.21% and a return on equity of 12.00%. The firm had revenue of $2.03 billion for the quarter, compared to the consensus estimate of $2.09 billion. During the same quarter in the prior year, the firm earned $0.67 earnings per share. The company’s revenue for the quarter was up 9.3% compared to the same quarter last year. research analysts predict that Toll Brothers will post 3.66 EPS for the current year.
In other Toll Brothers news, President Richard T. Hartman sold 8,537 shares of the business’s stock in a transaction dated Tuesday, October 31st. The stock was sold at an average price of $46.00, for a total transaction of $392,702.00. Following the completion of the sale, the president now owns 27,233 shares of the company’s stock, valued at $1,252,718. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, President Richard T. Hartman sold 20,000 shares of the business’s stock in a transaction dated Tuesday, November 14th. The shares were sold at an average price of $47.00, for a total value of $940,000.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 64,687 shares of company stock valued at $2,840,390. 8.78% of the stock is owned by company insiders.
Large investors have recently added to or reduced their stakes in the business. NewSquare Capital LLC bought a new position in shares of Toll Brothers in the second quarter worth about $101,000. Advisors Asset Management Inc. lifted its position in shares of Toll Brothers by 61.6% in the second quarter. Advisors Asset Management Inc. now owns 2,667 shares of the construction company’s stock worth $105,000 after buying an additional 1,017 shares in the last quarter. IFP Advisors Inc lifted its position in shares of Toll Brothers by 369.1% in the second quarter. IFP Advisors Inc now owns 2,735 shares of the construction company’s stock worth $108,000 after buying an additional 2,152 shares in the last quarter. Aviance Capital Management LLC purchased a new stake in shares of Toll Brothers in the second quarter worth about $151,000. Finally, Toronto Dominion Bank lifted its position in shares of 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. 82.52% of the stock is owned by institutional investors and hedge funds.
About Toll Brothers
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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