5 Industrial Stocks That Are Must Buys According to Caxton Associates

4. The Toro Company (NYSE:TTC)

Value of Caxton Associates’ 13F Position: $1.46 million

Number of Hedge Fund Shareholders: 24

Caxton Associates was bucking the hedge fund trend when it came to The Toro Company (NYSE:TTC) in Q1, nearly doubling the size of its long position to 17,066 shares. Hedge fund ownership of Toro has declined for four straight quarters since peaking in the first quarter of 2021, falling by 31% during that period. John Overdeck and David Siegel’s Two Sigma Advisors was one of the funds to sell off its TTC stake during Q1.

The Toro Company (NYSE:TTC) grew year-over-year net sales by 8.7% to $1.25 billion in the company’s fiscal second quarter ended April 29. The landscaping equipment company’s professional segment was the strongest performer, growing net sales by 11.8% to $925.8 million. Increased costs weighed heavily on margins however, as gross margin fell by 270 basis points to 32.4%.

The Toro Company (NYSE:TTC) recently launched a robotic, autonomous mower that boasts an industry-first vision-based system. The wire-free system will become available to consumers next spring. Robotic mower sales are expected to grow significantly over the next decade as they become more efficient and affordable. The company also recently unveiled an autonomous fairway mower.