Wedbush Has Negative Outlook of Toll Brothers Q1 Earnings

Toll Brothers, Inc. (NYSE:TOL) – Research analysts at Wedbush cut their Q1 2025 earnings per share (EPS) estimates for shares of Toll Brothers in a research report issued to clients and investors on Wednesday, December 11th. Wedbush analyst J. Mccanless now anticipates that the construction company will post earnings per share of $2.04 for the quarter, down from their prior estimate of $2.37. Wedbush has a “Outperform” rating and a $175.00 price target on the stock. The consensus estimate for Toll Brothers’ current full-year earnings is $14.57 per share. Wedbush also issued estimates for Toll Brothers’ Q2 2025 earnings at $3.63 EPS and Q4 2025 earnings at $5.20 EPS.

TOL has been the subject of several other reports. StockNews.com downgraded Toll Brothers from a “buy” rating to a “hold” rating in a research note on Wednesday, September 11th. Barclays increased their price target on shares of Toll Brothers from $116.00 to $135.00 and gave the stock an “underweight” rating in a research report on Thursday, August 22nd. Wells Fargo & Company boosted their price objective on shares of Toll Brothers from $163.00 to $170.00 and gave the company an “overweight” rating in a research report on Friday, September 27th. Oppenheimer reiterated an “outperform” rating and issued a $189.00 target price on shares of Toll Brothers in a research report on Thursday, December 12th. Finally, Royal Bank of Canada lifted their target price on shares of Toll Brothers from $143.00 to $150.00 and gave the company an “outperform” rating in a research note on Wednesday, December 11th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $152.53.

Toll Brothers Price Performance

TOL opened at $132.73 on Monday. The firm has a market capitalization of $13.40 billion, a P/E ratio of 8.95, a PEG ratio of 1.00 and a beta of 1.69. The stock has a fifty day moving average of $152.76 and a 200-day moving average of $139.53. The company has a quick ratio of 0.57, a current ratio of 4.92 and a debt-to-equity ratio of 0.37. Toll Brothers has a 12-month low of $95.46 and a 12-month high of $169.52.

Toll Brothers (NYSE:TOL) last issued its quarterly earnings results on Monday, December 9th. The construction company reported $4.63 EPS for the quarter, beating the consensus estimate of $4.34 by $0.29. Toll Brothers had a net margin of 14.48% and a return on equity of 19.64%. The business had revenue of $3.33 billion during the quarter, compared to the consensus estimate of $3.17 billion. During the same quarter in the prior year, the firm earned $4.11 EPS. The firm’s quarterly revenue was up 10.4% on a year-over-year basis.

Toll Brothers Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 24th. Investors of record on Friday, January 10th will be paid a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.69%. The ex-dividend date is Friday, January 10th. Toll Brothers’s payout ratio is 6.12%.

Insider Buying and Selling

In related news, Director Paul E. Shapiro sold 3,837 shares of Toll Brothers stock in a transaction on Monday, December 16th. The shares were sold at an average price of $134.14, for a total value of $514,695.18. Following the transaction, 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 legal filing with the SEC, which is available through this link. Also, CEO Douglas C. Jr. Yearley sold 50,000 shares of the business’s stock in a transaction on Friday, September 27th. The stock was sold at an average price of $154.51, for a total transaction of $7,725,500.00. Following the transaction, the chief executive officer now directly owns 246,382 shares of the company’s stock, valued at approximately $38,068,482.82. This represents a 16.87 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 109,837 shares of company stock worth $16,950,495. 1.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Larson Financial Group LLC increased its stake in Toll Brothers by 57.9% during the third quarter. Larson Financial Group LLC now owns 180 shares of the construction company’s stock valued at $28,000 after acquiring an additional 66 shares during the period. First Trust Direct Indexing L.P. increased its position in shares of Toll Brothers by 1.4% during the third quarter. First Trust Direct Indexing L.P. now owns 5,089 shares of the construction company’s stock valued at $786,000 after purchasing an additional 72 shares during the period. Fifth Third Bancorp raised its stake 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 valued at $94,000 after purchasing an additional 82 shares in the last quarter. First Citizens Bank & Trust Co. lifted its position in Toll Brothers by 3.7% in the third quarter. First Citizens Bank & Trust Co. now owns 2,351 shares of the construction company’s stock worth $363,000 after purchasing an additional 83 shares during the period. Finally, Clifford Swan Investment Counsel LLC boosted its stake in 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 buying an additional 89 shares in the last quarter. 91.76% of the stock is currently owned by institutional investors and hedge funds.

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.