Zacks Research Cuts Earnings Estimates for Toll Brothers

Toll Brothers Inc. (NYSE:TOL) – Equities research analysts at Zacks Research cut their Q2 2026 EPS estimates for Toll Brothers in a note issued to investors on Monday, March 2nd. Zacks Research analyst Team now anticipates that the construction company will post earnings per share of $2.53 for the quarter, down from their previous estimate of $3.12. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Toll Brothers’ current full-year earnings is $13.83 per share. Zacks Research also issued estimates for Toll Brothers’ Q4 2027 earnings at $5.07 EPS and Q1 2028 earnings at $2.44 EPS.

Several other equities research analysts have also issued reports on the company. Citizens Jmp reiterated a “market outperform” rating and set a $175.00 price target on shares of Toll Brothers in a report on Wednesday, February 18th. Truist Financial assumed coverage on shares of Toll Brothers in a research report on Wednesday. They set a “buy” rating and a $190.00 price objective on the stock. Citigroup boosted their target price on shares of Toll Brothers from $141.00 to $162.00 and gave the stock a “neutral” rating in a research report on Thursday, February 26th. Keefe, Bruyette & Woods increased their price target on shares of Toll Brothers from $143.00 to $170.00 and gave the stock a “market perform” rating in a research note on Wednesday, February 25th. Finally, The Goldman Sachs Group raised their price target on shares of Toll Brothers from $140.00 to $156.00 and gave the company a “neutral” rating in a report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Toll Brothers presently has an average rating of “Moderate Buy” and a consensus target price of $165.25.

Toll Brothers Price Performance

TOL opened at $153.46 on Wednesday. The company has a current ratio of 4.57, a quick ratio of 0.62 and a debt-to-equity ratio of 0.32. Toll Brothers has a 1 year low of $86.67 and a 1 year high of $168.36. The stock has a fifty day moving average price of $149.07 and a 200 day moving average price of $141.17. The stock has a market cap of $14.53 billion, a price-to-earnings ratio of 10.96, a PEG ratio of 1.20 and a beta of 1.45.

Toll Brothers (NYSE:TOL) last issued its earnings results on Tuesday, February 17th. The construction company reported $2.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.14. Toll Brothers had a net margin of 12.26% and a return on equity of 16.83%. The company had revenue of $2.15 billion during the quarter, compared to analyst estimates of $1.86 billion. During the same quarter last year, the business posted $1.75 EPS. The company’s revenue for the quarter was up 15.4% on a year-over-year basis.

Hedge Funds Weigh In On Toll Brothers

Several large investors have recently bought and sold shares of the stock. Western Wealth Management LLC grew its holdings in Toll Brothers by 2.6% during the fourth quarter. Western Wealth Management LLC now owns 2,658 shares of the construction company’s stock worth $359,000 after buying an additional 68 shares in the last quarter. Root Financial Partners LLC boosted its holdings in Toll Brothers by 21.9% during the 4th quarter. Root Financial Partners LLC now owns 389 shares of the construction company’s stock worth $53,000 after acquiring an additional 70 shares during the last quarter. Merit Financial Group LLC grew its stake in shares of Toll Brothers by 0.4% in the 4th quarter. Merit Financial Group LLC now owns 20,568 shares of the construction company’s stock worth $2,781,000 after acquiring an additional 72 shares in the last quarter. IFP Advisors Inc grew its stake in shares of Toll Brothers by 2.4% in the 4th quarter. IFP Advisors Inc now owns 3,200 shares of the construction company’s stock worth $433,000 after acquiring an additional 74 shares in the last quarter. Finally, NorthCrest Asset Manangement LLC raised its holdings in shares of Toll Brothers by 0.3% in the fourth quarter. NorthCrest Asset Manangement LLC now owns 26,685 shares of the construction company’s stock valued at $3,633,000 after purchasing an additional 81 shares during the last quarter. 91.76% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CEO Douglas C. Jr. Yearley sold 45,116 shares of the firm’s stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $160.42, for a total value of $7,237,508.72. Following the sale, the chief executive officer owned 321,256 shares in the company, valued at approximately $51,535,887.52. This trade represents a 12.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Paul E. Shapiro sold 3,965 shares of the business’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $146.68, for a total transaction of $581,586.20. Following the transaction, the director directly owned 118,680 shares in the company, valued at $17,407,982.40. This trade represents a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 1.37% of the company’s stock.

Toll Brothers Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were paid a dividend of $0.25 per share. The ex-dividend date was Friday, January 9th. This represents a $1.00 annualized dividend and a yield of 0.7%. Toll Brothers’s dividend payout ratio is presently 7.14%.

Toll Brothers News Roundup

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Truist initiated coverage with a “Buy” rating and a $190 price target (~24% upside from current levels), providing a near-term bullish analyst catalyst. Article Title
• Positive Sentiment: Toll Brothers announced a new luxury community “Toll Brothers at Oakhill Reserve” near Tomball/Houston — expansion into high-demand Texas markets supports future lot sales and revenue visibility. Article Title
• Positive Sentiment: Grand opening of “Regency at Rockhill Ridge” (55+ active-adult community) in Sellersville, PA — diversifies product mix into active-adult segment and can accelerate closings in a stable demographic. Article Title
• Positive Sentiment: Grand opening of Toll Brothers at Quail Ridge in Ridgefield, WA — first community in that market increases local brand presence and sell-through opportunities. Article Title
• Positive Sentiment: Marketing/sales update: Toll Brothers announced final opportunities at the Mira Vista townhome community in San Diego — signaling tight inventory at that project and potential near-term closings. Article Title
• Positive Sentiment: Zacks raised several medium‑to‑longer‑term EPS estimates (notably FY2027 and FY2028 upgrades and some quarterly uplifts), which supports longer‑term earnings trajectory assumptions. Article Title
• Neutral Sentiment: Seeking Alpha published a cautious piece noting there’s “not enough conviction” to upgrade to a buy — useful for investor sentiment but not a direct operational update. Article Title
• Negative Sentiment: Zacks also issued a number of near‑term cuts (lowered Q1 2028, Q2 2026, Q2 2027 and some 2026/2027 quarter estimates) and maintains a “Hold” stance — the mixed revisions add uncertainty to short‑term earnings expectations. Article Title
• Negative Sentiment: Macro headwinds: Barron’s highlights rising mortgage rates and weaker pending/closed sales data, which weigh on builder stocks broadly and could pressure Toll Brothers’ demand and pricing if rates remain elevated. Article Title

About Toll Brothers

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.