Toll Brothers Stock Flat Despite Analyst Upgrade

The 40-day moving average is capping price action

Fernanda Horner

Digital Content Manager

Jun 17, 2024 at 11:13 AM

Goldman Sachs upgraded Toll Brothers Inc (NYSE:TOL) to "neutral" from "sell" earlier, with the analyst in coverage noting the homebuilder's outperformance due to new home sales, as well as tailwinds from customization and upgrades. TOL was last seen flat at $119.32.

Analysts were already bullish toward TOL coming into today, with 12 of the 18 in question calling it a "buy" or better, while the 12-month consensus target price of $138.39 is a lofty 15.4% premium to current levels.

The equity is not far off its May 15, record high of $135.37, and sports a 62.6% year-over-year lead. Today's pop is running into resistance from the 40-day moving average, though, which has capped rallies since late May.

Short-term options traders have been much more bullish than usual. This is per the TOL's Schaeffer's put/call open interest ratio (SOIR) of 0.93, which sits in the low 12th percentile of its annual range.

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