DIANNE CRAIG Sees Potential Growth And Acquires In Toro Stock Options

A noteworthy insider acquisition was disclosed on November 5, as CRAIG, Director at Toro TTC, reported the acquisition of stock options for 2,167 shares.

What Happened: CRAIG, Director at Toro, engaged in a derivative transaction according to a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission. This involved the acquisition of stock options for 2,167 shares of TTC, providing the right to purchase the company's stock at an exercise price of $81.5 per share.

During Tuesday's morning session, Toro shares up by 1.24%, currently priced at $81.68. Considering the current price, CRAIG's 2,167 shares have a total value of $390.

Discovering Toro: A Closer Look

The Toro Co manufactures turf maintenance and landscaping equipment. The company produces reel and rotary riding products, trim cutting and walking mowers, greens rollers, turf sprayer equipment, underground irrigation systems, heavy-duty walk-behind mowers, and sprinkler systems used for professional turf and landscape maintenance and construction. Its products are marketed through a network of distributors and dealers to predominantly professional users maintaining turfs and sports fields such as golf courses. Its operating segments are Professional which generates a substantial part of its revenue, and Residential segment. The company also produces snow plowers and ice management products. Its key revenue generating market is the United States.

Financial Insights: Toro

Positive Revenue Trend: Examining Toro's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.94% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 34.82%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Toro's EPS is below the industry average. The company faced challenges with a current EPS of 1.15. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.68, Toro adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Toro's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 21.18.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.88, Toro's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 13.48, Toro demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Toro's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.