5 Best Homebuilder Stocks Sorted By Hedge Fund Sentiment

4. Toll Brothers, Inc. (NYSE:TOL)

Number of Hedge Fund Holders: 37

Shares of Toll Brothers, Inc. (NYSE:TOL) have gained about 22% year to date through April 24. In March, Toll Brothers, Inc. (NYSE:TOL) upped its dividend by 5%. The latest dividend was payable on April 21.

The biggest hedge fund stakeholders of Toll Brothers, Inc. (NYSE:TOL) according to Insider Monkey’s database of 943 hedge funds include Edgar Wachenheim’s Greenhaven Associates, Cliff Asness’s AQR Capital Management and Brandon Haley’s Holocene Advisors.

Baron Funds made the following comment about Toll Brothers, Inc. (NYSE:TOL) in its Q4 2022 investor letter:

“Toll Brothers, Inc. (NYSE:TOL) is the leading luxury homebuilder in the U.S. with a capable management team as well as a large and valuable owned land portfolio. Toll Brothers is more insulated than its peers from elevated mortgage rates because 20% of the buyers of Toll homes pay 100% in cash.

At its year-end 2022 price of only $49.92/share, the company is valued at only 0.83 times our estimate of 2023 tangible book value of $60/share. Historically, Toll Brothers’ shares have been valued, on average, at 1.4 times book value and a peak multiple of approximately 2.0 times tangible book value. If the shares recover in the next few years and trade only to the company’s long-term average multiple of 1.4 times book value, Toll Brothers’ share price would increase 82% to $91 per share.”