Toro (NYSE:TTC) Shares Gap Up Following Earnings Beat

Toro Company (The) (NYSE:TTC)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $72.65, but opened at $77.99. Toro shares last traded at $79.0130, with a volume of 194,332 shares traded.

The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.05. The firm had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.05 billion. Toro had a return on equity of 28.90% and a net margin of 7.01%.The company’s revenue for the quarter was down .9% on a year-over-year basis. During the same quarter last year, the business posted $0.95 EPS. Toro has set its FY 2026 guidance at 4.350-4.50 EPS.

Toro Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, January 12th. Investors of record on Monday, December 22nd will be given a $0.39 dividend. The ex-dividend date of this dividend is Monday, December 22nd. This represents a $1.56 dividend on an annualized basis and a yield of 2.0%. This is a boost from Toro’s previous quarterly dividend of $0.38. Toro’s payout ratio is 47.95%.

Wall Street Analyst Weigh In

TTC has been the subject of a number of recent research reports. Robert W. Baird set a $84.00 price target on Toro in a research report on Tuesday. Longbow Research upgraded Toro from a “neutral” rating to a “buy” rating and set a $100.00 price objective on the stock in a research note on Monday, August 25th. DA Davidson raised their target price on shares of Toro from $93.00 to $97.00 and gave the company a “buy” rating in a research note on Friday, September 5th. Northland Securities lifted their price objective on shares of Toro from $80.00 to $90.00 and gave the stock a “market perform” rating in a research report on Tuesday, September 9th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Toro in a research report on Wednesday, October 8th. Three research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $92.20.

Hedge Funds Weigh In On Toro

Several hedge funds have recently bought and sold shares of the company. Kayne Anderson Rudnick Investment Management LLC increased its stake in Toro by 16.4% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 8,187,609 shares of the company’s stock valued at $595,649,000 after acquiring an additional 1,156,314 shares during the last quarter. AQR Capital Management LLC lifted its stake in Toro by 1,184.6% in the 1st quarter. AQR Capital Management LLC now owns 1,963,253 shares of the company’s stock valued at $142,827,000 after purchasing an additional 1,810,429 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in Toro by 39.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,534,760 shares of the company’s stock valued at $111,654,000 after buying an additional 434,257 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Toro by 7.8% during the first quarter. The Manufacturers Life Insurance Company now owns 500,660 shares of the company’s stock worth $36,423,000 after buying an additional 36,051 shares during the last quarter. Finally, Raymond James Financial Inc. grew its stake in shares of Toro by 8.8% during the first quarter. Raymond James Financial Inc. now owns 496,608 shares of the company’s stock worth $36,128,000 after buying an additional 40,166 shares during the last quarter. 87.95% of the stock is owned by institutional investors.

Toro Stock Down 2.7%

The company has a market capitalization of $7.66 billion, a price-to-earnings ratio of 24.68 and a beta of 0.84. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.87 and a quick ratio of 0.79. The firm’s fifty day moving average price is $72.74 and its 200-day moving average price is $74.47.

Toro Company Profile

The Toro Company designs, manufactures, markets, and sells professional turf maintenance equipment and services. It operates through two segments: Professional and Residential. The Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment, such as horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools; and snow and ice management equipment, such as snowplows, as well as stand-on snow and ice removal equipment, such as snowplow, snow brush, and snow thrower attachments, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders.