Wedbush Has Pessimistic View of Toll Brothers Q3 Earnings

Toll Brothers, Inc. (NYSE:TOL) – Stock analysts at Wedbush decreased their Q3 2025 earnings estimates for shares of Toll Brothers in a research report issued to clients and investors on Wednesday, February 19th. Wedbush analyst J. Mccanless now expects that the construction company will post earnings per share of $4.07 for the quarter, down from their prior estimate of $4.45. 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’ Q4 2025 earnings at $5.60 EPS, FY2025 earnings at $14.44 EPS, Q1 2026 earnings at $1.97 EPS, Q3 2026 earnings at $4.72 EPS and Q4 2026 earnings at $5.80 EPS.

A number of other research analysts also recently commented on the stock. UBS Group reduced their price objective on shares of Toll Brothers from $185.00 to $183.00 and set a “buy” rating on the stock in a research note on Thursday. Royal Bank of Canada reduced their price objective on shares of Toll Brothers from $142.00 to $139.00 and set an “outperform” rating on the stock in a research note on Thursday. Seaport Res Ptn upgraded shares of Toll Brothers from a “strong sell” rating to a “hold” rating in a research note on Monday, January 27th. Citigroup reduced their price objective on shares of Toll Brothers from $155.00 to $137.00 and set a “neutral” rating on the stock in a research note on Monday, January 6th. Finally, Evercore ISI increased their price objective on shares of Toll Brothers from $181.00 to $184.00 and gave the company an “outperform” rating in a research note on Wednesday, December 11th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Toll Brothers currently has a consensus rating of “Moderate Buy” and an average price target of $150.86.

Toll Brothers Price Performance

TOL opened at $111.45 on Friday. The company has a fifty day simple moving average of $128.57 and a 200 day simple moving average of $141.37. The firm has a market cap of $11.13 billion, a price-to-earnings ratio of 7.67, a PEG ratio of 1.02 and a beta of 1.76. Toll Brothers has a twelve month low of $107.79 and a twelve month high of $169.52. The company has a current ratio of 4.65, a quick ratio of 0.80 and a debt-to-equity ratio of 0.35.

Toll Brothers (NYSE:TOL) last released its quarterly earnings results 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 firm had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.91 billion. Toll Brothers had a net margin of 14.03% and a return on equity of 18.32%.

Institutional Trading of Toll Brothers

Several hedge funds have recently bought and sold shares of TOL. ORG Partners LLC bought a new stake in Toll Brothers in the 4th quarter valued at about $25,000. Capital Performance Advisors LLP bought a new stake in Toll Brothers in the 3rd quarter valued at about $27,000. Brooklyn Investment Group bought a new stake in Toll Brothers in the 3rd quarter valued at about $27,000. Lee Danner & Bass Inc. bought a new stake in Toll Brothers in the 4th quarter valued at about $27,000. Finally, Larson Financial Group LLC increased its stake in Toll Brothers by 57.9% during the 3rd quarter. Larson Financial Group LLC now owns 180 shares of the construction company’s stock valued at $28,000 after buying an additional 66 shares during the period. 91.76% of the stock is currently owned by institutional investors.

Insider Transactions at Toll Brothers

In related news, CFO Martin P. Connor sold 11,140 shares of Toll Brothers stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $126.07, for a total value of $1,404,419.80. Following 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 position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Paul E. Shapiro sold 3,837 shares of Toll Brothers stock in a transaction dated 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 sale, 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 disclosure for this sale can be found here. In the last three months, insiders have sold 15,202 shares of company stock worth $1,947,436. 1.54% of the stock is currently owned by insiders.

Toll Brothers Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 24th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.83%. Toll Brothers’s payout ratio is currently 6.33%.

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.