Wedbush Has Pessimistic View of Toll Brothers Q2 Earnings

Toll Brothers, Inc. (NYSE:TOL) – Research analysts at Wedbush lowered their Q2 2025 earnings estimates for Toll Brothers in a report released on Wednesday, February 19th. Wedbush analyst J. Mccanless now anticipates that the construction company will post earnings of $3.10 per share for the quarter, down from their previous forecast of $3.63. 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 $13.83 per share. Wedbush also issued estimates for Toll Brothers’ Q2 2026 earnings at $3.52 EPS and FY2026 earnings at $15.92 EPS.

Toll Brothers (NYSE:TOL) last posted its quarterly earnings data on Tuesday, February 18th. The construction company reported $1.75 earnings per share for the quarter, missing analysts’ consensus estimates of $1.99 by ($0.24). The company had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.91 billion. Toll Brothers had a net margin of 14.03% and a return on equity of 18.32%.

Other research analysts have also recently issued reports about the stock. Royal Bank of Canada decreased their target price on shares of Toll Brothers from $142.00 to $139.00 and set an “outperform” rating for the company in a report on Thursday. Seaport Res Ptn upgraded shares of Toll Brothers from a “strong sell” rating to a “hold” rating in a report on Monday, January 27th. Bank of America lowered their price objective on Toll Brothers from $156.00 to $140.00 and set a “buy” rating on the stock in a research report on Thursday. The Goldman Sachs Group reduced their target price on Toll Brothers from $143.00 to $125.00 and set a “neutral” rating for the company in a report on Thursday. Finally, Citigroup lowered their price target on Toll Brothers from $155.00 to $137.00 and set a “neutral” rating on the stock in a report on Monday, January 6th. One analyst has rated the stock with a sell rating, six have given a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Toll Brothers currently has an average rating of “Moderate Buy” and an average price target of $150.86.

Toll Brothers Price Performance

TOL opened at $111.45 on Monday. The firm has a market cap of $11.13 billion, a PE ratio of 7.67, a P/E/G ratio of 1.02 and a beta of 1.76. The stock has a 50-day moving average price of $128.57 and a 200-day moving average price of $141.49. Toll Brothers has a 1 year low of $107.79 and a 1 year high of $169.52. The company has a debt-to-equity ratio of 0.35, a current ratio of 4.65 and a quick ratio of 0.80.

Toll Brothers Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 24th. Shareholders of record on Friday, January 10th were given a $0.23 dividend. The ex-dividend date of this dividend was Friday, January 10th. This represents a $0.92 annualized dividend and a yield of 0.83%. Toll Brothers’s payout ratio is presently 6.33%.

Insider Activity at Toll Brothers

In related news, Director Paul E. Shapiro sold 3,837 shares of the company’s stock in a transaction on Monday, December 16th. The shares were sold at an average price of $134.14, for a total transaction of $514,695.18. Following the completion of the transaction, the director now owns 119,937 shares in the company, valued at approximately $16,088,349.18. This represents a 3.10 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Martin P. Connor sold 11,140 shares of Toll Brothers stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $126.07, for a total value of $1,404,419.80. Following the completion of the sale, the chief financial officer now directly owns 20,618 shares in the company, valued at $2,599,311.26. This trade represents a 35.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 15,202 shares of company stock worth $1,947,436. Corporate insiders own 1.54% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. ORG Partners LLC purchased a new position in shares of Toll Brothers during the 4th quarter worth about $25,000. Capital Performance Advisors LLP bought a new position in shares of Toll Brothers in the 3rd quarter worth $27,000. Brooklyn Investment Group purchased a new stake in shares of Toll Brothers during the third quarter valued at about $27,000. Lee Danner & Bass Inc. purchased a new stake in Toll Brothers during the fourth quarter valued at approximately $27,000. Finally, Larson Financial Group LLC boosted its position in shares of Toll Brothers by 57.9% in the 3rd quarter. Larson Financial Group LLC now owns 180 shares of the construction company’s stock worth $28,000 after purchasing an additional 66 shares in the last quarter. Hedge funds and other institutional investors own 91.76% of the company’s stock.

About Toll Brothers

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.