DIANNE CRAIG, Director at Toro TTC, disclosed an insider purchase on November 5, based on a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that CRAIG made a notable purchase of 1,101 shares of Toro, valuing at $89,731.

The latest update on Tuesday morning shows Toro shares up by 1.24%, trading at $81.68.

All You Need to Know About Toro

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.

Understanding the Numbers: Toro’s Finances

Revenue Growth: Toro’s remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 6.94%. This signifies a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 34.82%, reflecting superior cost management and profitability compared to its peers.

• 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: Toro’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.68.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 21.18 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.88 is above industry norms, reflecting an elevated valuation for Toro’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 13.48, Toro demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.