Toll Brothers Inc. (TOL) Shares Decline Despite Market Challenges

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Toll Brothers Inc. (NYSE: TOL)’s stock price has dropped by -0.27 in relation to previous closing price of 143.09. Nevertheless, the company has seen a gain of 9.54% in its stock price over the last five trading days. zacks.com reported 2024-07-31 that Toll Brothers (TOL) concluded the recent trading session at $142.71, signifying a -0.27% move from its prior day’s close.

Is It Worth Investing in Toll Brothers Inc. (NYSE: TOL) Right Now?

Toll Brothers Inc. (NYSE: TOL) has a higher price-to-earnings ratio of 9.74x compared to its average ratio. TOL has 36-month beta value of 1.64. Analysts have mixed views on the stock, with 7 analysts rating it as a “buy,” 5 as “overweight,” 6 as “hold,” and 1 as “sell.”

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The public float for TOL is 101.49M, and currently, short sellers hold a 3.72% ratio of that float. The average trading volume of TOL on August 01, 2024 was 1.44M shares.

TOL’s Market Performance

TOL’s stock has seen a 9.54% increase for the week, with a 27.05% rise in the past month and a 19.81% gain in the past quarter. The volatility ratio for the week is 3.76%, and the volatility levels for the past 30 days are at 3.29% for Toll Brothers Inc. The simple moving average for the past 20 days is 13.47% for TOL’s stock, with a 32.38% simple moving average for the past 200 days.

Analysts’ Opinion of TOL

Many brokerage firms have already submitted their reports for TOL stocks, with Goldman repeating the rating for TOL by listing it as a “Neutral.” The predicted price for TOL in the upcoming period, according to Goldman is $124 based on the research report published on June 17, 2024 of the current year 2024.

Wolfe Research gave a rating of “Outperform” to TOL, setting the target price at $118 in the report published on January 08th of the current year.

TOL Trading at 16.94% 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 -1.21% of loss for the given period.

Volatility was left at 3.29%, however, over the last 30 days, the volatility rate increased by 3.76%, as shares surge +28.32% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.16% upper at present.

During the last 5 trading sessions, TOL rose by +9.54%, which changed the moving average for the period of 200-days by +100.86% in comparison to the 20-day moving average, which settled at $127.34. In addition, Toll Brothers Inc. saw 38.84% 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 Connor Martin P., who sale 3,806 shares at the price of $121.84 back on Jun 12 ’24. After this action, Connor Martin P. now owns 24,721 shares of Toll Brothers Inc., valued at $463,730 using the latest closing price.

Connor Martin P., the Chief Financial Officer of Toll Brothers Inc., sale 16,194 shares at $118.74 during a trade that took place back on Jun 10 ’24, which means that Connor Martin P. is holding 28,527 shares at $1,922,842 based on the most recent closing price.

Stock Fundamentals for TOL

Current profitability levels for the company are sitting at:

  • 0.19 for the present operating margin
  • 0.28 for the gross margin

The net margin for Toll Brothers Inc. stands at 0.15. The total capital return value is set at 0.2. Equity return is now at value 23.04, with 12.53 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 0.43. The debt to equity ratio resting at 0.4. The interest coverage ratio of the stock is 41.03.

Currently, EBITDA for the company is 1.72 billion with net debt to EBITDA at 0.92. When we switch over and look at the enterprise to sales, we see a ratio of 1.57. The receivables turnover for the company is 72.67for trailing twelve months and the total asset turnover is 0.79. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.58.

Conclusion

To put it simply, Toll Brothers Inc. (TOL) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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