Toro (NYSE:TTC) Shares Gap Up After Strong Earnings

Shares of Toro Company (The) (NYSE:TTC) gapped up before the market opened 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 trading hands.

The company reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.86 by $0.05. Toro had a net margin of 7.37% and a return on equity of 28.98%. During the same quarter in the prior year, the firm posted $0.95 earnings per share. The business’s revenue was down .9% on a year-over-year basis. 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. This represents a $1.56 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Monday, December 22nd. This is a positive change from Toro’s previous quarterly dividend of $0.38. Toro’s dividend payout ratio is presently 46.06%.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Epoch Investment Partners Inc. raised its position in Toro by 96.9% during the 1st quarter. Epoch Investment Partners Inc. now owns 8,260 shares of the company’s stock valued at $601,000 after purchasing an additional 4,065 shares during the last quarter. American Century Companies Inc. grew its stake in Toro by 324.2% in the first quarter. American Century Companies Inc. now owns 131,485 shares of the company’s stock worth $9,566,000 after purchasing an additional 100,487 shares during the period. Gabelli Funds LLC boosted its holdings in shares of Toro by 6.5% during the 1st quarter. Gabelli Funds LLC now owns 57,500 shares of the company’s stock valued at $4,183,000 after buying an additional 3,500 shares in the last quarter. Capital Fund Management S.A. boosted its stake in Toro by 350.3% during the first quarter. Capital Fund Management S.A. now owns 84,745 shares of the company’s stock worth $6,165,000 after acquiring an additional 65,927 shares in the last quarter. Finally, Raymond James Financial Inc. increased 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 valued at $36,128,000 after purchasing an additional 40,166 shares in the last quarter. 87.95% of the stock is owned by institutional investors.

Toro Price Performance

The company has a quick ratio of 0.79, a current ratio of 1.88 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $7.75 billion, a P/E ratio of 24.03 and a beta of 0.84. The firm has a fifty day moving average price of $72.60 and a two-hundred day moving average price of $74.41.

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.