Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Shares of our common stock are listed on the New York Stock Exchange (“NYSE”) under the symbol “TOL”. At December 15, 2023, there were approximately 399 record holders of our common stock.
Issuer Purchases of Equity Securities
During the three months ended October 31, 2023, we repurchased the following shares of our common stock:
Period Total number
of shares
purchased (a) Average
price
paid per share (b) Total number
of shares
purchased as
part of a
publicly
announced plan or program (c) Maximum
number
of shares that
may yet be
purchased
under the plan or program (c)
(in thousands) (in thousands) (in thousands)
August 1, 2023 to August 31, 2023 707 $ 78.18 707 10,309
September 1, 2023 to September 30, 2023 2,301 $ 76.39 2,301 8,008
October 1, 2023 to October 31, 2023 1,292 $ 70.64 1,292 6,716
Total 4,300 4,300
(a) Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a performance based restricted stock unit recipient or a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the recipient. During the three months ended October 31, 2023, we withheld 153,756 of the shares subject to performance based restricted stock units and restricted stock units to cover approximately $181,000 of income tax withholdings and we issued the remaining 6,837 shares to the recipients. The shares withheld are not included in the total number of shares purchased in the table above.
Our stock incentive plans also permit participants to exercise non-qualified stock options using a “net exercise” method. In a net exercise, we generally withhold from the total number of shares that otherwise would be issued to the participant upon exercise of the stock option that number of shares having a fair market value at the time of exercise equal to the option exercise price and applicable income tax withholdings, and remit the remaining shares to the participant. During the three-month period ended October 31, 2023, the net exercise method was not employed to exercise options.
(b) Average price paid per share includes costs associated with the purchases, but excludes any excise tax that we accrue on our share repurchases as a result of the Inflation Reduction Act of 2022.
(c) On May 17, 2022, our Board of Directors authorized the repurchase of 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. This authorization terminated, effective May 17, 2022, the prior authorization that had been in effect since March 10, 2020. Most recently, on December 13, 2023, the Board of Directors renewed its authorization to repurchase 20 million shares of our common stock and terminated, effective the same date, the existing authorization that had been in effect since May 17, 2022. Our Board of Directors did not fix any expiration date for the current share repurchase program.
Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreements), which limit the amount of share repurchases we may make. Based upon these provisions, our ability to repurchase our common stock was limited to approximately $3.60 billion as of October 31, 2023.
21
Dividends
During fiscal 2023, we paid aggregate cash dividends of $0.83 per share to our shareholders. The payment of dividends is within the discretion of our Board of Directors and any decision to pay dividends in the future, and the amount of any such dividend, will depend upon an evaluation of a number of factors, including our results of operations, our capital requirements, our operating and financial condition, and any contractual limitations then in effect. Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreement), which restricts the amount of dividends we may pay. At October 31, 2023, under the provisions of our revolving credit agreement and term loan agreement, we could have paid up to approximately $2.76 billion of cash dividends.
Stockholder Return Performance Graph
The following graph and chart compares the five-year cumulative total return (assuming that an investment of $100 was made on October 31, 2018, and that dividends were reinvested) from October 31, 2018 to October 31, 2023, for (a) our common stock, (b) the S&P Homebuilding Index and (c) the S&P 500 ® :
Comparison of 5 Year Cumulative Total Return Among Toll Brothers, Inc., the S&P 500 ® , and
the S&P Homebuilding Index
October 31: 2018 2019 2020 2021 2022 2023
Toll Brothers, Inc. $ 100.00 $ 119.55 $ 128.77 $ 185.36 $ 134.77 $ 224.13
S&P 500 ®
$ 100.00 $ 114.33 $ 125.43 $ 179.25 $ 153.06 $ 168.59
S&P Homebuilding Index $ 100.00 $ 146.42 $ 171.86 $ 227.93 $ 193.98 $ 273.26
ITEM 6. [RESERVED]
22