On July 14, 2023, Yearley Douglas C. Jr., the CEO of Toll Brothers Inc (TOL, Financial), sold 20,000 shares of the company. This move is part of a larger trend for Yearley, who over the past year has sold a total of 329,000 shares and purchased none.
Yearley Douglas C. Jr. has been with Toll Brothers Inc, a leading builder of luxury homes in the United States, for over 30 years. He has served as CEO since 2010, guiding the company through various market conditions and maintaining its position as a top player in the industry.
Toll Brothers Inc, founded in 1967, is a Fortune 500 company that operates in 24 states across the country. The company designs, builds, markets, and arranges financing for single-family detached and attached homes in luxury residential communities. It also builds and sells homes in urban infill markets through its Toll Brothers City Living division.
The insider transaction history for Toll Brothers Inc shows a clear trend: over the past year, there have been no insider buys and 24 insider sells. This could be a signal to investors about the company's future prospects.
On the day of Yearley's recent sell, shares of Toll Brothers Inc were trading for $83.25 apiece, giving the company a market cap of $9.132 billion. The price-earnings ratio is 6.67, lower than both the industry median of 8.28 and the company’s historical median price-earnings ratio. This suggests that the stock is undervalued when compared to its peers and its own historical standards.
However, the GuruFocus Value of $69.36 indicates that the stock is modestly overvalued. The price-to-GF-Value ratio of 1.2 supports this assessment.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by CEO Yearley Douglas C. Jr., along with the overall trend of insider sells at Toll Brothers Inc, may raise questions for potential investors. However, the company's lower-than-average price-earnings ratio and its solid position in the luxury home building industry could make it an attractive option for those looking for value in the real estate sector.
