Shares of homebuilder Toll Brothers (NYSE:TOL) are ticking higher today, after the company authorized a major share repurchase program.
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The luxury homebuilder’s Board has approved a repurchase of 20 million shares. Under its previous repurchase program, the company bought back nearly 13.3 million shares, or 12% of its outstanding float from May 2022 to December 12.
Notably, Toll has lowered its outstanding share count by 40% via buybacks. Along with the new buyback program, the company has announced a quarterly dividend of $0.21 per share. The TOL dividend is payable on January 26 to investors of record on January 12.
Today’s bonanza for investors follows a robust fourth-quarter performance from the company earlier this month. It generated an EPS of $4.11 on revenue of $3.02 billion for the quarter. The order backlog at the end of Q4 stood at $6.95 billion.
For Fiscal year 2024, Toll expects to deliver 8,850 to 10,350 homes at an average price of $940,000 to $960,000 per home. House prices have remained elevated this year amid low inventory levels. The company’s share price has surged by nearly 91% over the past year. It could potentially benefit from the supply-demand imbalance and expected rate cuts next year.
What Is the Price Prediction for TOL?
Overall, the Street has a Moderate Buy consensus rating on Toll Brothers. The average TOL price target of $101.38 implies a 5.1% potential upside in the stock.
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