Unusual Call Option Trade in Toll Brothers Worth $127.26K

On March 23, 2023 at 11:00:07 ET an unusually large $127.26K block of Call contracts in Toll Brothers (TOL) was bought, with a strike price of $61.00 / share, expiring in 29 days (on April 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.60 sigmas above the mean, placing it in the 97.69 percentile of all recent large trades made in TOL options.

This trade was first picked up on Fintel’s real time Unusual Option Trades tool, where unusual option trades are highlighted.

Analyst Price Forecast Suggests 15.15% Upside

As of March 23, 2023, the average one-year price target for Toll Brothers is $66.56. The forecasts range from a low of $50.50 to a high of $84.00. The average price target represents an increase of 15.15% from its latest reported closing price of $57.80.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Toll Brothers is $8,383MM, a decrease of 18.33%. The projected annual non-GAAP EPS is $8.57.

What is the Fund Sentiment?

There are 922 funds or institutions reporting positions in Toll Brothers. This is an increase of 19 owner(s) or 2.10% in the last quarter. Average portfolio weight of all funds dedicated to TOL is 0.24%, an increase of 34.74%. Total shares owned by institutions increased in the last three months by 8.18% to 126,475K shares. The put/call ratio of TOL is 2.72, indicating a bearish outlook.

What are Large Shareholders Doing?

Capital International Investors holds 7,410K shares representing 6.69% ownership of the company. In it’s prior filing, the firm reported owning 4,457K shares, representing an increase of 39.85%. The firm increased its portfolio allocation in TOL by 81.85% over the last quarter.

Greenhaven Associates holds 5,355K shares representing 4.84% ownership of the company. In it’s prior filing, the firm reported owning 5,360K shares, representing a decrease of 0.09%. The firm increased its portfolio allocation in TOL by 0.20% over the last quarter.

ANCFX – AMERICAN FUNDS FUNDAMENTAL INVESTORS holds 4,705K shares representing 4.25% ownership of the company. In it’s prior filing, the firm reported owning 3,655K shares, representing an increase of 22.31%. The firm increased its portfolio allocation in TOL by 41.45% over the last quarter.

Massachusetts Financial Services holds 4,544K shares representing 4.10% ownership of the company. In it’s prior filing, the firm reported owning 4,771K shares, representing a decrease of 4.99%. The firm decreased its portfolio allocation in TOL by 99.98% over the last quarter.

SMCWX – SMALLCAP WORLD FUND INC holds 3,856K shares representing 3.48% ownership of the company. In it’s prior filing, the firm reported owning 2,105K shares, representing an increase of 45.42%. The firm increased its portfolio allocation in TOL by 103.53% over the last quarter.

Toll Brothers Declares $0.21 Dividend

On March 9, 2023 the company declared a regular quarterly dividend of $0.21 per share ($0.84 annualized). Shareholders of record as of April 6, 2023 will receive the payment on April 21, 2023. Previously, the company paid $0.20 per share.

At the current share price of $57.80 / share, the stock’s dividend yield is 1.45%. Looking back five years and taking a sample every week, the average dividend yield has been 1.28%, the lowest has been 0.80%, and the highest has been 3.19%. The standard deviation of yields is 0.31 (n=237).

The current dividend yield is 0.56 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.07. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.91%, demonstrating that it has increased its dividend over time.

Toll Brothers Background Information
(This description is provided by the company.)

Toll Brothers, Inc., A FORTUNE 500 Company, is the nation’s leading builder of luxury homes. The Company began business over fifty years ago in 1967 and became a public company in 1986. The Company serves first-time, move-up, empty-nester, active-adult, affordable luxury and second-home buyers, as well as urban and suburban renters. It operates in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. Toll Brothers builds an array of luxury residential single-family detached, attached home, master planned resort-style golf, and urban low-, mid-, and high-rise communities, principally on land it develops and improves. The Company acquires and develops rental apartment and commercial properties through Toll Brothers Apartment Living, Toll Brothers Campus Living, and the affiliated Toll Brothers Realty Trust, and develops urban low-, mid-, and high-rise for-sale condominiums through Toll Brothers City Living. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management, and landscape subsidiaries. Toll Brothers operates its own alarm monitoring company through TBI Smart Home Solutions, a complete home technology division. In addition to providing security monitoring, TBI Smart Home Solutions offers homeowners a full range of low voltage options, allowing buyers to maximize the potential of technology in their new home. The Company also operates its own lumber distribution, house component assembly, and manufacturing operations. Through its Gibraltar Real Estate Capital joint venture, the Company provides builders and developers with land banking, non-recourse debt and equity capital.

This article originally appeared on Fintel

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