Truist Financial Initiates Coverage on Toll Brothers (NYSE:TOL)

Equities researchers at Truist Financial assumed coverage on shares of Toll Brothers (NYSE:TOL) in a note issued to investors on Wednesday. The brokerage set a “buy” rating and a $190.00 price target on the construction company’s stock. Truist Financial’s price target indicates a potential upside of 23.69% from the stock’s previous close.

Several other analysts have also commented on the company. Barclays reaffirmed an “underweight” rating on shares of Toll Brothers in a report on Monday, February 23rd. Keefe, Bruyette & Woods raised their price objective on shares of Toll Brothers from $143.00 to $170.00 and gave the stock a “market perform” rating in a research note on Wednesday, February 25th. Zacks Research upgraded shares of Toll Brothers from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Citigroup upped their price objective on shares of Toll Brothers from $141.00 to $162.00 and gave the stock a “neutral” rating in a research report on Thursday, February 26th. Finally, Citizens Jmp reissued a “market outperform” rating and set a $175.00 target price on shares of Toll Brothers in a research note on Wednesday, February 18th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Toll Brothers currently has a consensus rating of “Moderate Buy” and a consensus target price of $165.25.

Toll Brothers Stock Performance

Shares of TOL stock opened at $153.61 on Wednesday. The business has a fifty day moving average of $148.80 and a 200 day moving average of $141.09. Toll Brothers has a 1 year low of $86.67 and a 1 year high of $168.36. The company has a debt-to-equity ratio of 0.32, a current ratio of 4.57 and a quick ratio of 0.62. The firm has a market capitalization of $14.55 billion, a price-to-earnings ratio of 10.97, a price-to-earnings-growth ratio of 1.20 and a beta of 1.45.

Toll Brothers (NYSE:TOL) last posted its quarterly earnings results on Tuesday, February 17th. The construction company reported $2.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.05 by $0.14. Toll Brothers had a net margin of 12.26% and a return on equity of 16.83%. The company had revenue of $2.15 billion during the quarter, compared to analyst estimates of $1.86 billion. During the same period last year, the firm posted $1.75 EPS. Toll Brothers’s revenue for the quarter was up 15.4% compared to the same quarter last year. As a group, research analysts expect that Toll Brothers will post 13.83 earnings per share for the current year.

Insiders Place Their Bets

In other Toll Brothers news, Director Paul E. Shapiro sold 3,965 shares of the company’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $146.68, for a total value 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of Toll Brothers stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $160.42, for a total transaction of $7,237,508.72. Following the sale, the chief executive officer directly owned 321,256 shares in the company, valued at approximately $51,535,887.52. The trade was a 12.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.37% of the company’s stock.

Institutional Trading of Toll Brothers

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Greenhaven Associates Inc. increased its stake in Toll Brothers by 0.4% in the fourth quarter. Greenhaven Associates Inc. now owns 5,603,187 shares of the construction company’s stock valued at $757,663,000 after purchasing an additional 22,218 shares during the period. Capital World Investors grew its stake in Toll Brothers by 51.5% in the 3rd quarter. Capital World Investors now owns 5,187,673 shares of the construction company’s stock valued at $716,625,000 after acquiring an additional 1,763,211 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Toll Brothers by 2,067.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,303,915 shares of the construction company’s stock worth $446,756,000 after purchasing an additional 3,151,509 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Toll Brothers by 1.4% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,901,015 shares of the construction company’s stock worth $400,745,000 after purchasing an additional 39,987 shares during the last quarter. Finally, AQR Capital Management LLC grew its holdings in Toll Brothers by 83.1% during the 2nd quarter. AQR Capital Management LLC now owns 2,607,993 shares of the construction company’s stock valued at $297,650,000 after buying an additional 1,183,304 shares during the last quarter. Institutional investors and hedge funds own 91.76% of the company’s stock.

Toll Brothers News Roundup

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

• Positive Sentiment: Zacks raised several medium?/longer?term EPS forecasts (Q3 2026, Q4 2026, Q3 2027, Q4 2027 and FY2027–FY2028), implying stronger earnings later in the forecast horizon — this supports longer?term upside expectations for TOL.
• Neutral Sentiment: Toll Brothers announced local community developments and grand openings (Mira Vista in San Diego; Quail Ridge in Ridgefield, WA), which sustain revenue pipeline and inventory turns but are small, localized growth drivers. Mira Vista release Quail Ridge release
• Negative Sentiment: Zacks cut several near?term EPS forecasts (notably Q2 2026 from $3.12 to $2.53, and reductions for Q1/Q2 2027 and FY2026), signaling weaker near?term demand/earnings than previously modeled — this likely pressured the stock intraday.
• Negative Sentiment: Sector commentary: media and housing data point to higher mortgage rates and falling closed/pending sales (NAR January data), which are cited as reasons builder stocks could face near?term pressure. Barron’s: Higher mortgage rates
• Negative Sentiment: Investor commentary remains cautious: a recent Seeking Alpha piece argues there’s not yet enough conviction to upgrade Toll Brothers to a buy, reinforcing conservative sentiment among some investors. Seeking Alpha article

About Toll Brothers

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.