Toll Brothers: Balancing Strong Performance and Market Uncertainties with a Hold Rating

BTIG analyst Carl Reichardt has maintained their neutral stance on TOL stock, giving a Hold rating on May 20.

Carl Reichardt has given his Hold rating due to a combination of factors impacting Toll Brothers. The company reported better-than-expected earnings per share for the second quarter of 2025, primarily driven by higher deliveries and improved margins. However, the decline in orders, particularly in February, and the weaker average selling price compared to estimates, highlight some challenges in the current market environment.
Despite Toll Brothers’ resilience to buyer affordability issues, the overall weakening consumer confidence presents a potential headwind. Reichardt notes that while the company has shown strong performance in certain regions and plans to focus on luxury product deliveries, the shares appear fairly valued with limited upside potential. As a result, the Hold rating reflects the balance between the company’s operational strengths and the market uncertainties ahead.

In another report released on May 20, KBW also maintained a Hold rating on the stock with a $132.00 price target.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TOL in relation to earlier this year.