Unusual Surge in Put Options for Toro Company Sparks Interest

Traders exhibited heightened interest in Toro Company (NYSE:TTC) on Wednesday, with an unusual surge in put options trading. Investors acquired 1,176 put options, marking an increase of 1,709% compared to the average daily volume of just 65 options. This surge suggests a significant shift in market sentiment regarding the company’s stock.

Toro’s Financial Position and Recent Performance

On Thursday, Toro’s stock opened at $95.74. The company has a market capitalization of $9.37 billion and a price-to-earnings ratio of 30.20. Over the past year, shares have fluctuated between a low of $62.34 and a high of $97.50. Toro’s financial metrics reveal a quick ratio of 0.86, a current ratio of 1.87, and a debt-to-equity ratio of 0.63. The stock’s 50-day moving average stands at $81.67, while the 200-day moving average is $77.75.

Toro recently announced its earnings results for the quarter ending December 17, 2023. The company reported earnings per share (EPS) of $0.91, exceeding the consensus estimate of $0.86 by $0.05. Revenue for the quarter reached $1.07 billion, surpassing analyst expectations of $1.05 billion. Despite these positive results, Toro experienced a year-over-year revenue decline of 0.9%, compared to a prior EPS of $0.95 in the same quarter last year. Looking ahead, Toro has set its FY 2026 guidance at $4.35 to $4.50 EPS.

Institutional Investors and Analyst Ratings

Recent activity among institutional investors indicates growing interest in Toro. Goldman Sachs Group Inc. increased its holdings in the company by 37.4% in the first quarter, now owning 456,861 shares valued at approximately $33.24 million after acquiring an additional 124,373 shares. Similarly, Van ECK Associates Corp raised its stake by 0.6%, now holding 247,609 shares worth around $18.87 million.

Russell Investments Group Ltd. also boosted its stake by 11.0%, owning 125,215 shares valued at $9.54 million. Captrust Financial Advisors grew its holdings by 16.6% and now owns 52,879 shares, while TD Private Client Wealth LLC increased its stake by an astonishing 14,306.0%, acquiring 47,684 shares valued at $3.63 million. Institutional investors hold 87.95% of Toro’s stock.

Analysts have mixed views on Toro’s stock. Wall Street Zen downgraded Toro from a “buy” to a “hold” rating on January 25, while Weiss Ratings maintained a “hold (c-)” rating in an October report. Robert W. Baird set a price objective of $84.00 on December 16. Zacks Research upgraded Toro from a “strong sell” to a “hold” rating on January 20. Currently, three analysts rate the stock as a buy, while four have assigned it a hold rating. The average rating stands at “hold,” with a consensus target price of $92.20.

Toro Company, founded in 1914 and headquartered in Bloomington, Minnesota, specializes in the design, manufacture, and marketing of outdoor equipment for residential, commercial, and professional markets. Its diverse product range includes lawn mowers, utility vehicles, snow throwers, irrigation systems, and landscape maintenance equipment. The company has established a century-long legacy of innovation in the grounds-care industry, serving various sectors, including golf courses and municipal parks.