Toll Brothers Inc. (NYSE: TOL)’s stock price has gone decline by -2.98 in comparison to its previous close of 117.85, however, the company has experienced a -8.03% decrease in its stock price over the last five trading days. Seeking Alpha reported 2024-04-16 that Toll Brothers Inc. is recommended as a buy due to strong demand for luxury homes and the company’s ability to capitalize on this trend. The company has shown growth in revenue and net income, with a recent revenue growth of 9.4% driven by a 40% increase in unit orders. Despite potential headwinds for margins, price increases and continued share repurchases are expected to support EPS growth.
Is It Worth Investing in Toll Brothers Inc. (NYSE: TOL) Right Now?
Toll Brothers Inc. (NYSE: TOL) has a price-to-earnings ratio of 8.83x that is above its average ratio. Additionally, the 36-month beta value for TOL is 1.67. There are mixed opinions on the stock, with 7 analysts rating it as a “buy,” 5 rating it as “overweight,” 9 rating it as “hold,” and 1 rating it as “sell.”
The public float for TOL is 102.99M and currently, short sellers hold a 2.67% ratio of that float. The average trading volume of TOL on April 17, 2024 was 1.40M shares.
TOL’s Market Performance
TOL stock saw a decrease of -8.03% in the past week, with a monthly decline of -4.96% and a quarterly a decrease of 14.34%. The volatility ratio for the week is 2.43%, and the volatility levels for the last 30 days are 2.39% for Toll Brothers Inc. (TOL).. The simple moving average for the past 20 days is -7.72% for TOL’s stock, with a 24.49% simple moving average for the past 200 days.
Analysts’ Opinion of TOL
Wolfe Research, on the other hand, stated in their research note that they expect to see TOL reach a price target of $118. The rating they have provided for TOL stocks is “Outperform” according to the report published on January 08th, 2024.
Seaport Research Partners gave a rating of “Buy” to TOL, setting the target price at $93 in the report published on November 02nd of the previous year.
TOL Trading at -1.20% from the 50-Day Moving Average
After a stumble in the market that brought TOL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.47% of loss for the given period.
Volatility was left at 2.39%, however, over the last 30 days, the volatility rate increased by 2.43%, as shares sank -4.38% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +14.15% upper at present.
During the last 5 trading sessions, TOL fell by -8.03%, which changed the moving average for the period of 200-days by +45.99% in comparison to the 20-day moving average, which settled at $123.64. In addition, Toll Brothers Inc. saw 11.24% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at TOL starting from East Stephen F., who sale 1,500 shares at the price of $119.32 back on Apr 15 ’24. After this action, East Stephen F. now owns 9,389 shares of Toll Brothers Inc., valued at $178,980 using the latest closing price.
SHAPIRO PAUL E, the Director of Toll Brothers Inc., sale 2,500 shares at $123.22 during a trade that took place back on Apr 03 ’24, which means that SHAPIRO PAUL E is holding 120,107 shares at $308,050 based on the most recent closing price.
Stock Fundamentals for TOL
Current profitability levels for the company are sitting at:
- 0.18 for the present operating margin
- 0.27 for the gross margin
The net margin for Toll Brothers Inc. stands at 0.14. The total capital return value is set at 0.19. Equity return is now at value 21.48, with 11.59 for asset returns.
Based on Toll Brothers Inc. (TOL), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.46. The debt to equity ratio resting at 0.41. The interest coverage ratio of the stock is 41.12.
Currently, EBITDA for the company is 1.72 billion with net debt to EBITDA at 1.12. When we switch over and look at the enterprise to sales, we see a ratio of 1.37. The receivables turnover for the company is 73.11for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.77.
Conclusion
In conclusion, Toll Brothers Inc. (TOL) has seen mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
