Toll Brothers (NYSE:TOL) Rating Increased to Hold at Zacks Research

by · The Markets Daily

Zacks Research upgraded shares of Toll Brothers (NYSE:TOL – Free Report) from a strong sell rating to a hold rating in a research note issued to investors on Monday,Zacks.com reports. Zacks Research also issued estimates for Toll Brothers’ Q1 2028 earnings at $2.47 EPS and FY2028 earnings at $16.60 EPS.

TOL has been the subject of several other reports. Keefe, Bruyette & Woods reduced their price objective on Toll Brothers from $145.00 to $143.00 and set a “market perform” rating for the company in a report on Thursday, December 11th. Citizens Jmp initiated coverage on Toll Brothers in a research report on Wednesday, January 7th. They set a “market outperform” rating and a $175.00 price target on the stock. Oppenheimer lifted their price objective on Toll Brothers from $155.00 to $177.00 and gave the stock an “outperform” rating in a report on Tuesday. The Goldman Sachs Group upped their price objective on shares of Toll Brothers from $140.00 to $156.00 and gave the company a “neutral” rating in a report on Tuesday, January 13th. Finally, UBS Group lowered their price target on shares of Toll Brothers from $183.00 to $181.00 and set a “buy” rating on the stock in a research report on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $155.87.

Check Out Our Latest Analysis on Toll Brothers

Toll Brothers Stock Performance

NYSE TOL opened at $160.77 on Monday. The company has a fifty day moving average price of $142.45 and a 200-day moving average price of $137.44. The firm has a market cap of $15.23 billion, a price-to-earnings ratio of 11.95, a PEG ratio of 1.20 and a beta of 1.47. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.38 and a quick ratio of 0.64. Toll Brothers has a 1 year low of $86.67 and a 1 year high of $162.03.

Toll Brothers (NYSE:TOL – Get Free Report) last released its earnings results on Monday, December 8th. The construction company reported $4.58 earnings per share for the quarter, missing analysts’ consensus estimates of $4.88 by ($0.30). Toll Brothers had a net margin of 12.28% and a return on equity of 16.74%. The company had revenue of $3.42 billion during the quarter, compared to analysts’ expectations of $3.32 billion. During the same quarter in the previous year, the firm earned $4.63 earnings per share. The firm’s revenue was up 2.7% compared to the same quarter last year. As a group, equities research analysts predict that Toll Brothers will post 13.83 EPS for the current fiscal year.

Toll Brothers Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 9th were issued a $0.25 dividend. The ex-dividend date was Friday, January 9th. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. Toll Brothers’s dividend payout ratio (DPR) is currently 7.37%.

Insider Activity at Toll Brothers

In related news, Director Paul E. Shapiro sold 3,965 shares of the company’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $146.68, for a total transaction of $581,586.20. Following the completion of the sale, the director directly owned 118,680 shares in the company, valued at $17,407,982.40. This represents a 3.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 1.37% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Toll Brothers

A number of hedge funds have recently modified their holdings of the company. Pinebridge Investments LLC bought a new stake in shares of Toll Brothers in the fourth quarter worth about $1,770,000. Parallel Advisors LLC lifted its holdings in Toll Brothers by 5.9% in the 4th quarter. Parallel Advisors LLC now owns 1,977 shares of the construction company’s stock worth $267,000 after buying an additional 111 shares during the period. Livforsakringsbolaget Skandia Omsesidigt grew its position in shares of Toll Brothers by 6.7% in the 4th quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 33,600 shares of the construction company’s stock worth $4,543,000 after buying an additional 2,100 shares during the last quarter. SlateStone Wealth LLC increased its stake in shares of Toll Brothers by 1.1% during the fourth quarter. SlateStone Wealth LLC now owns 42,581 shares of the construction company’s stock valued at $5,758,000 after buying an additional 481 shares during the period. Finally, Vise Technologies Inc. raised its holdings in shares of Toll Brothers by 63.7% during the fourth quarter. Vise Technologies Inc. now owns 6,103 shares of the construction company’s stock valued at $825,000 after acquiring an additional 2,374 shares in the last quarter. Hedge funds and other institutional investors own 91.76% of the company’s stock.

Key Toll Brothers News

Here are the key news stories impacting Toll Brothers this week:

  • Positive Sentiment: Zacks Research upgraded Toll Brothers from “strong sell” to “hold” and modestly raised its Q1 2028 and FY2028 EPS forecasts (Q1 to $2.47; FY to $16.60). The re‑rating and upward estimate tinkering reduce downside risk and support near‑term buy interest. Zacks Upgrade & Estimates
  • Positive Sentiment: Analyst/commentary pieces show rising investor attention and bullish framing (e.g., a Yahoo Finance piece discussing whether to be bullish), which can amplify demand for the shares. Should You Be Bullish on Toll Brothers?
  • Positive Sentiment: Toll Brothers continues to add for‑sale inventory and geographic diversification with new luxury community launches announced this week in Nolensville, TN; San Bruno, CA; and new home designs in Cumming, GA — incremental future revenue and local market exposure. Nolensville Community Release San Bruno Community Release Cumming Home Designs Release
  • Neutral Sentiment: Options‑market activity has drawn attention and some traders interpret open interest/movement as a bet on a near‑term move; this can amplify volatility but is not a directional fundamental signal by itself. Options Market Note
  • Neutral Sentiment: Media pieces highlighting that TOL is a “trending” stock increase visibility; useful for flow and momentum but not a direct earnings/valuation change. Trending Stock Article
  • Neutral Sentiment: Reminder: Toll Brothers is scheduled to report earnings next Tuesday — scheduled earnings events often increase short‑term volatility as investors position ahead of the print. Earnings Release Notice
  • Negative Sentiment: Most recent quarterly results (Dec. 8) showed a slight EPS miss (reported $4.58 vs. $4.88 expected), which remains a reminder of execution/margin risk if demand or costs deteriorate — a potential headwind if upcoming guidance disappoints.

About Toll Brothers

(Get Free Report)

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.

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