Now Is A Suitable Moment For A Long-Term Purchase Of Toll Brothers Inc. (NYSE: TOL)

Capital Research & Management Co recently announced the acquisition of new stake in Toll Brothers Inc. (NYSE:TOL). The institutional investor has increased its shareholding in the Consumer Cyclical company by 66.26% to 7.41 million shares with purchase of 2.95 million shares. This fresh investment now brings its stake to 6.69% valued currently at $473.55 million. In addition, Millennium Management LLC raised its holdings by 2.26 million to 3.1 million shares. And AQR Capital Management LLC has lifted its position by 18.89% or 0.28 million shares – to 1.78 million shares.

With over 2.47 million Toll Brothers Inc. (TOL) shares trading Monday and a closing price of $64.70 on the day, the dollar volume was approximately $159.67 million. The shares have shown a positive half year performance of 42.92% and its price on 05/22/23 lost nearly -2.50%. Currently, there are 111.40M common shares owned by the public and among those 105.30M shares have been available to trade.

Insiders at the company have transacted a total of 50 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 429,513 shares. Insider sales of the common stock occurred on 28 occasions, with total insider shares sold totaling 320,478 shares.

The top 3 mutual fund holders in Toll Brothers Inc. are American Funds Fundamental Invest, American Funds Small Cap World Fu, and Vanguard Total Stock Market ETF. American Funds Fundamental Invest owns 4.7 million shares of the company’s stock, all valued at over $300.68 million. American Funds Small Cap World Fu bought 20908.0 shares to see its total holdings expand to 3.88 million shares valued at over $247.77 million and representing 3.50% of the shares outstanding. Vanguard Total Stock Market ETF sold 72789.0 shares to bring its total holdings to over 3.24 million shares at a value of $207.04 million. Vanguard Total Stock Market ETF now owns shares totaling to 2.93% of the shares outstanding.

Shares of Toll Brothers Inc. (NYSE: TOL) opened at $66.13, down -$0.23 from a prior closing price of $66.36. However, the script later moved the day high at 66.91, down -2.50%. The company’s stock has a 5-day price change of -0.23% and 16.01% over the past three months. TOL shares are trading 29.61% year to date (YTD), with the 12-month market performance up to 38.22% higher. It has a 12-month low price of $39.53 and touched a high of $67.54 over the same period. TOL has an average intraday trading volume of 1.43 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.00%, 5.87%, and 23.79% respectively.

Institutional ownership of Toll Brothers Inc. (NYSE: TOL) shares accounts for 85.90% of the company’s 111.40M shares outstanding. Mutual fund holders own 40.50%, while other institutional holders and individual stakeholders account for 52.64% and 11.09% respectively.

It has a market capitalization of $7.29B and a beta (3y monthly) value of 1.38. The stock’s trailing 12-month PE ratio is 5.61, while the earnings-per-share (ttm) stands at $11.54. The company has a PEG of 1.57 and the debt-to-equity ratio at 0.52. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.89% over the week and 2.30% over the month.

Analysts forecast that Toll Brothers Inc. (TOL) will achieve an EPS of $1.91 for the current quarter, $2.17 for the next quarter and $7.74 for 2024. The lowest estimate earnings-per-share for the quarter is $1.73 while analysts give the company a high EPS estimate of $2.03. Comparatively, EPS for the current quarter was $1.85 a year ago. Earnings per share for the fiscal year are expected to increase by 64.60%, and -11.66% over the next financial year. EPS should shrink at an annualized rate of 3.57% over the next five years, compared to 28.00% over the past 5-year period.