The last time we updated our tracking of insider trading at Toll Bros. the stock was in the process of topping out. Curiously, at that time Robert Toll was making the rounds on various TV channels talking about a bottom in housing. Robert and his brother Bruce were also dumping tens of millions of dollars in stock on the market. Lo and behold, their timing was impeccable. The stock quickly fell 25% before rebounding.
This isn’t the first time the Toll brothers have sold at a near term peak. As you can see in the following chart insider trading of Toll Brothers stock has been almost uncanny. They dumped hundreds of millions at the peak of the housing market and subsequently sold off smaller chunks at just about every short-term top in the stock:
Well, the Toll Brothers are back at it. And this one is a doozy. Since the beginning of September Robert Toll has sold almost $100MM in stock. He hasn’t sold this much stock since the market peaked in 2005. In fairness to both Toll Brothers, they remain the largest shareholders of the company and $100MM is a fairly small amount in the grand scheme of things. Either way, it can’t be seen as a vote of confidence in future stock price appreciation or the state of the housing market.
This post originally appeared at the author’s blog.