Traders Bet on Toro’s Stock Price Falling with High Volume of Put Option Purchases
November 4, 2023
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The Toro Company ($NYSE:TTC) is a leading global provider of outdoor power equipment and irrigation solutions. It manufactures and markets a full line of professional turf maintenance equipment, irrigation systems, landscape and outdoor lighting products, and snow-removal equipment. As one of the top brands in the industry, Toro has a strong presence on the stock market, with its shares traded on the New York Stock Exchange. Recently, traders have been betting on Toro’s stock price falling by purchasing put options in high volumes. Put options are a type of derivative that gives the buyer the right to sell a security at a certain price before a certain date.
In this case, traders are buying put options with the hope that Toro’s stock price will fall below the strike price before the option expires. The high volume of put options being purchased by traders is an indication that they are expecting Toro’s stock price to decline in the near future. This could be due to a variety of factors, such as a weakening economy or a shift in consumer preferences away from Toro’s products. Time will tell whether or not these traders have made the correct bet.
Market Price
On Thursday, TORO COMPANY‘s stock price rose significantly, opening at $82.1 and closing at $83.7, up by 3.3% from its previous closing price of $81.0. Put options are a type of derivative security that gives the buyer the right to sell a security at a predetermined price and date. This suggests that in spite of the recent surge in stock price, traders are expecting the stock to fall in the near term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Toro Company. More…
| Total Revenues | Net Income | Net Margin |
| 4.74k | 376.92 | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Toro Company. More…
| Operations | Investing | Financing |
| 297.27 | -186.82 | -202.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Toro Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.59k | 2.11k | 14.22 |
Key Ratios Snapshot
Some of the financial key ratios for Toro Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.2% | 19.2% | 10.8% |
| FCF Margin | ROE | ROA |
| 2.6% | 21.1% | 8.9% |
Analysis
GoodWhale has conducted an analysis of TORO COMPANY‘s wellbeing using the Star Chart system. Our results have classified TORO COMPANY as a ‘gorilla’, indicating it has achieved steady and high revenue or earning growth due to its strong competitive advantage. This type of company is likely to attract investors looking for long-term stability and growth. We have also given TORO COMPANY a high health score of 8/10 with regard to its cashflows and debt, meaning it is capable of withstanding any crisis without the risk of bankruptcy. Its strong performance in terms of asset, dividend, growth, and profitability provide further evidence of robustness and security for potential investors. More…
Peers
Toro Co is a leading manufacturer of hydraulic elements and systems. Its products are used in a wide range of industries, including construction, agriculture, and automotive. The company has a strong competitive position in the market, with a wide range of products and a strong brand.
However, it faces competition from a number of other companies, including Hydraulic Elements and Systems AD, Cummins Inc, and Groupe SFPI SA.
– Hydraulic Elements and Systems AD ($LTS:0NZ4)
Hydraulic Elements and Systems AD is a leading manufacturer of hydraulic components and systems for a variety of industries. The company has a strong reputation for quality and innovation, and its products are used in a wide range of applications. Hydraulic Elements and Systems AD has a market cap of 113.71M as of 2022, a Return on Equity of 13.72%. The company is a major supplier of hydraulic components and systems for the automotive, construction, and mining industries, among others. Its products are known for their quality and reliability, and the company has a strong commitment to customer satisfaction.
– Cummins Inc ($NYSE:CMI)
Cummins Inc is a global power leader that designs, manufactures, sells and services diesel engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, USA, Cummins employs approximately 62,600 people in about 190 countries and territories.
– Groupe SFPI SA ($LTS:0N9P)
Groupe SFPI is a French holding company that specializes in financial and investment services. The company has a market capitalization of 189.59 million as of 2022 and a return on equity of 12.35%. The company’s core businesses include asset management, private equity, and venture capital. Groupe SFPI also has a minority stake in a number of listed companies, including Credit Agricole and AXA.
Summary
TORO Company is a stock worth analyzing for investors. Recent activity on the stock market has shown a high volume of put options being purchased, indicating a bullish sentiment among traders. Despite this, the stock price actually increased on the same day, a sign of confidence in the company’s health and future prospects. Investors should take note of the bullish sentiment and consider further research into TORO before making any decisions to invest.
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