Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A large exercise of company stock options by AMY DAHL, VP at Toro (NYSE:TTC) was disclosed in a new SEC filing on March 22, as part of an insider exercise.
What Happened: DAHL, VP at Toro, exercised stock options for 4,460 shares of TTC stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The exercise price of the options was $31.38 per share.
Currently, Toro shares are trading down 0.46%, priced at $90.6 during Friday's morning. This values DAHL's 4,460 shares at $266,016.
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.
Toro: A Financial Overview Revenue Challenges: Toro's revenue growth over 3 months faced difficulties. As of 31 January, 2024, the company experienced a decline of approximately -12.79%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Key Profitability Indicators:
- Gross Margin: The company excels with a remarkable gross margin of 34.38%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Toro's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.62.
Financial Valuation:
- 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 33.22.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.17 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 19.97 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
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The Importance of Insider Transactions Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
The Insider's Guide to Important Transaction Codes Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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