Toll Brothers, Inc. (TOL): What’s the Story?

Toll Brothers, Inc. (TOL) is an interesting player in the Industrial Goods space, with a focus on Residential Construction. The stock has been active on the tape, currently trading at $42.69, up from yesterday’s close by 0.80%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Toll Brothers, Inc. (TOL) currently trades with a market capitalization of $6.47 Billion. That value represents a market adjusting for revenues that have been growing by 27.67 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $571.88 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.77 on a per share basis this quarter. Perhaps, that suggests something about why 5.78% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how TOL has been acting. Looking at the stock’s movement on the chart, Toll Brothers, Inc. recorded a 52-week high of $52.73. It is now trading 10.04% off that level. The stock is trading $44.57 its 50-day moving average by 1.88%. The stock carved out a 52-week low down at $35.07.

In recent action, Toll Brothers, Inc. (TOL) has made a move of -4.69% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.09% with $140.07 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of TOL.

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