Exploring The Toro Company (TTC) Investor Profile: Who’s Buying and Why?

You're looking at The Toro Company (TTC) and asking the right question: who is actually buying this stock, and why are they wading into a mixed bag of results? Honestly, the investor profile is a classic institutional play, with over 75% of the stock held by professional money managers, including giants like Vanguard Group Inc and BlackRock, Inc.. But here's the puzzle: while the company's Q3 2025 net sales came in at $1.13 billion, down 2.2% year-over-year, the adjusted earnings per share (EPS) still climbed 5% to a solid $1.24. This divergence is the heart of the buy/hold debate, because the Professional segment-think golf courses and underground construction-is crushing it with a 6% sales jump, but the Residential segment is dragging hard, seeing sales plummet 28% as homeowners pull back on big purchases. So, are the institutions buying the consistent, high-margin Professional story, or are they selling the weakness in the consumer market? That's what we need to unpack to see if their full-year adjusted EPS guidance of approximately $4.15 is a realistic floor or a hopeful ceiling.

Who Invests in The Toro Company (TTC) and Why?

The investor profile for The Toro Company (TTC) is heavily weighted toward large, institutional money, which signals a core, long-term holding in many major portfolios. You should think of TTC less as a speculative play and more as a foundational industrial stock, albeit one currently navigating a split market.

As of late 2025, a massive 87.95% of TTC's outstanding stock is held by institutional investors, such as mutual funds, pension funds, and asset managers. The remaining portion is split between public companies/retail investors, who hold about 6.67% (or 6.53 million shares), and insiders, who hold less than 1%. This is a classic setup for a mature, stable company: the big money holds the vast majority, so their buying and selling drives the price.

• Institutional Investors: The Vanguard Group, Inc. is the largest holder with a 10.46% stake, followed closely by BlackRock, Inc. at 9.57%. These are primarily passive index funds and long-term core holdings.
• Hedge Funds/Active Managers: While not a dominant force, active managers like Kayne Anderson Rudnick Investment Management LLC and AQR Capital Management LLC are significant holders, often looking for a value or growth-at-a-reasonable-price angle.
• Retail Investors: Your average individual investor is a small, but still important, part of the mix, often drawn to the company's recognizable brand and dividend history.

Investment Motivations: Stability, Growth, and Income

Investors are attracted to The Toro Company for a few clear, distinct reasons, but the main story right now is the resilience of its Professional segment offsetting the Residential slump. It's a tale of two markets.

The near-term growth narrative is all about the Professional segment, which includes golf, grounds, and underground construction equipment. This segment delivered Q3 2025 net sales of $930.8 million, up a strong 5.7% year-over-year, and expanded its earnings margin to 21.3%. That's a great number. This stability is crucial, especially since the Residential segment is expected to be down by the mid-teens for the full fiscal year 2025 due to weak homeowner demand and channel caution.

Here's the quick math on the income side: TTC is a dividend aristocrat in the making. The company pays an annual dividend of $1.52 per share, giving a current yield of about 2.24% as of November 2025. Plus, they have a 21-year history of consecutive dividend increases, which is a huge green flag for income-focused investors and pension funds who need predictable cash flow. You can find more on their long-term vision here: Mission Statement, Vision, & Core Values of The Toro Company (TTC).

Strategies: Passive Core to Active Value

The dominant strategy among TTC shareholders is a long-term, buy-and-hold approach, dictated by the sheer volume held by passive index funds (like those managed by Vanguard and BlackRock, Inc.). They own it because it's in the index, and they rarely sell.

For the active managers, the strategy is currently one of 'Active Value' or 'Growth at a Reasonable Price' (GARP), focusing on margin improvement and the successful execution of its cost-cutting initiatives. The company's AMP productivity program, which is on track to deliver at least $100 million in run rate savings by 2027, is a concrete lever for future earnings growth that appeals directly to value-oriented investors. This focus on efficiency is key, especially as the full-year fiscal 2025 net sales guidance is expected to be at the low end of flat to down 3%, with adjusted diluted earnings per share (EPS) expected to be about $4.15. Active investors are betting the margin improvements will pay off when the Residential market eventually recovers.

To be fair, the strong institutional ownership also means the stock can be less volatile than others, but it also means a major institutional shift can defintely move the price quickly.

Institutional Ownership and Major Shareholders of The Toro Company (TTC)

If you're looking at The Toro Company (TTC) stock, the first thing you need to grasp is that this is an institutionally-dominated name. The direct takeaway is that nearly all the stock's float is held by professional money managers, meaning the stock price is highly sensitive to their collective, often short-term, sentiment shifts.

As of the most recent filings for the 2025 fiscal year, institutional investors own a staggering 90.28% of The Toro Company's outstanding shares. This concentration is significant. It means that while the individual retail investor has a voice, the major decisions-from board elections to capital allocation-are effectively governed by a few hundred large funds. The total reported value of these institutional holdings alone was approximately $6.59 billion as of the third quarter of 2025.

Here's the quick math: With over 110.35 million shares held by institutions, the buying or selling of even a few hundred thousand shares by a major player can create meaningful volatility.

Top Institutional Investors: Who Holds the Keys to TTC?

The largest shareholders in The Toro Company are the passive index giants, the firms you see everywhere, plus a few active managers who see long-term value in the Professional segment. These are the funds whose investment decisions you need to track, as their sheer size dictates market liquidity and sentiment.

The top five institutional shareholders, based on Q3 2025 filings, are a familiar list of asset management behemoths. They hold massive passive stakes, which means they are long-term holders tied to the company's inclusion in major indexes like the S&P MidCap 400.

You can see the dominance: Vanguard and BlackRock alone control nearly 20% of the company.

Recent Shifts: The Q3 2025 Trading Signal

Monitoring changes in institutional positions is crucial because it tells you where the smart money is moving. The third quarter of fiscal year 2025 showed a mixed, but telling, picture. The largest passive investors were net sellers, which is a trend you defintely need to watch.

For instance, in Q3 2025, Vanguard Group Inc. reduced its position by 149,990 shares, and BlackRock, Inc. cut its stake by 163,503 shares. This is not a vote of no-confidence, but it does reflect a slight rebalancing or profit-taking by index funds that need to track market-cap changes.

But here's the key opportunity: active managers were buying aggressively, signaling confidence in TTC's strategic direction:

• Allspring Global Investments Holdings, LLC increased its stake by 1,966,259 shares.
• Aqr Capital Management Llc added 606,948 shares.

When you see passive funds slightly trimming and active, research-driven funds significantly increasing their positions, it suggests a divergence in conviction. The active buyers are likely betting on the company's strategic moves to drive future earnings growth.

Institutional Impact on Strategy and Stock Price

With nearly 90% of the stock held by institutions, these investors don't just influence the stock price; they shape the company's long-term strategy and capital deployment. Their influence is evident in two major areas: strategic acquisitions and Environmental, Social, and Governance (ESG) focus.

The recent acquisition of Tornado Infrastructure Equipment Ltd. for approximately CAD $279.3 million (expected to close in fiscal Q1 2026) is a direct response to institutional demands for growth in the Professional segment. This segment already accounted for nearly 80% of fiscal 2024 net sales, and the deal is expected to be marginally accretive to earnings in the first year. The use of debt for this all-cash transaction, while maintaining the stock repurchase program, is a clear nod to shareholder value creation.

Also, the major asset managers like BlackRock are pushing hard on sustainability. TTC's own strategy is built on an ESG foundation, with concrete 2025 goals. For example, the company is aiming to increase battery and hybrid product sales to at least 20% of total adjusted motorized net sales by the end of fiscal 2025. This focus on electrification and sustainability is a direct result of institutional investor pressure and capital flow toward ESG-aligned companies. If you want to dive deeper into the company's long-term vision, you should check out the Mission Statement, Vision, & Core Values of The Toro Company (TTC).

The bottom line for you is that high institutional ownership means less retail-driven noise, but higher volatility on major news events, as the big players move in unison. Your action item is to track the next 13F filings to see if the net selling trend from the passive funds continues, or if the active buyers double down on the infrastructure growth story.

Key Investors and Their Impact on The Toro Company (TTC)

The Toro Company (TTC) is overwhelmingly an institutionally-owned stock, which means your investment decision is largely influenced by the moves of massive asset managers. Institutional investors, like mutual funds and pension funds, hold approximately 90.28% of the total shares outstanding, representing a total of over 110 million shares across 1023 institutional owners as of the end of the third quarter of fiscal 2025.

This high concentration of institutional ownership is common for a stable, mid-cap company and generally points toward lower volatility, but it also means any large portfolio rebalancing by a top holder can move the stock. You need to watch the giants, because they are the market for TTC.

The Giants: Vanguard and BlackRock's Anchor Stakes

The investor profile is anchored by the world's largest passive and active fund managers. Vanguard Group Inc. and BlackRock, Inc. are consistently the two largest shareholders, which is typical for a stock included in major market indices.

As of September 30, 2025, Vanguard Group Inc. held the top spot with over 10.2 million shares, representing a 10.46% stake in the company. BlackRock, Inc. followed closely, owning over 9.3 million shares, or 9.57% of the company. These positions are often foundational, meaning they rarely sell off huge chunks, but their sheer size gives them a powerful, albeit passive, influence on corporate governance and long-term strategy. You can see how TTC's financial health supports this long-term view in Breaking Down The Toro Company (TTC) Financial Health: Key Insights for Investors.

• Vanguard Group Inc.: 10.2 million shares held.
• BlackRock, Inc.: 9.3 million shares held.
• State Street Corp: 4.2 million shares held.

Recent Investor Moves and the Professional Segment Thesis

Looking at the third quarter of fiscal year 2025, the most interesting moves came from active managers who were either accumulating or trimming their positions based on the company's mixed performance. While the Residential segment faced headwinds from weak homeowner demand, the Professional segment continued to be the growth engine, and this is where investor focus is defintely centered.

Here's the quick math: Professional segment net sales for Q3 2025 were $930.8 million, up 5.7% year-over-year, which is the clear driver of adjusted earnings. This performance validates the investment thesis of funds like LRT Capital Management, which highlighted The Toro Company (TTC) in its Q3 2025 investor letter, praising its portfolio of iconic brands like Ditch Witch and Exmark.

A notable recent move was Allspring Global Investments Holdings, Llc, which dramatically increased its stake by 137.645% in the third quarter, adding nearly 2 million shares to hold a total of 3.4 million shares. Conversely, some long-term holders like Kayne Anderson Rudnick Investment Management LLC and Neuberger Berman Group LLC trimmed their positions, selling around 149,000 and 172,000 shares, respectively, as of the same filing date. This shows a divergence: some see the Residential weakness as a buying opportunity, while others are taking profits or reallocating capital.

Investor Influence: Directing Capital Allocation

While The Toro Company (TTC) hasn't faced a major public activist campaign in 2025, investor expectations clearly drive capital allocation decisions. The company's focus on its Amplifying Maximum Productivity (AMP) initiative, which is on track to deliver at least $100 million in run-rate savings by 2027, is a direct response to the market's demand for greater operational efficiency and margin expansion.

Furthermore, management's actions, such as the October 2025 acquisition of Tornado Infrastructure Equipment Ltd., are strategically aligned with the Professional segment's robust demand, particularly in underground construction. This kind of accretive M&A (mergers and acquisitions) in a high-growth area is exactly what institutional shareholders want to see, demonstrating a commitment to maximizing returns on invested capital. The company also returned $290 million to shareholders through share repurchases year-to-date through Q3 2025, a clear signal of confidence in cash generation that appeals directly to shareholders.

What this estimate hides is that the influence is often subtle. When a company names a new Vice President of Corporate Affairs and Investor Relations, as The Toro Company (TTC) did in October 2025, it's a sign that effective communication with the investment community is a top-tier priority for the executive team. The biggest investors don't need to shout; the company listens to their quarterly feedback on strategy and execution.

Market Impact and Investor Sentiment

The investor profile for The Toro Company (TTC) is currently a study in divergence, reflecting a cautious but fundamentally positive outlook from institutional giants. While the consensus analyst rating leans toward a Moderate Buy, the immediate market reaction to recent earnings has been decidedly negative.

You are seeing a classic split: the long-term, institutional money is holding firm, but the short-term traders are punishing any miss on the top line. This is why institutional ownership is so high, sitting at a dominant 90.28% of shares outstanding.

The core sentiment is that the strength in the Professional segment, which includes golf, grounds, and underground construction, will ultimately offset the current weakness in the Residential market. Honestly, that Professional segment is the engine right now. You can see the company's long-term focus in their Mission Statement, Vision, & Core Values of The Toro Company (TTC).

Investor Sentiment: Institutional Conviction vs. Retail Caution

Major institutional shareholders, often referred to as the smart money, have a significant stake in The Toro Company, signaling long-term conviction in the business model. The largest three institutional holders-Vanguard Group Inc., Blackrock Inc., and Kayne Anderson Rudnick Investment Management LLC-collectively own a substantial portion of the company.

Specifically, Vanguard Group Inc. holds the largest position at approximately 10.46% of the stock, followed closely by Blackrock Inc. at 9.57%. This high institutional concentration suggests these large funds believe the company's current valuation is defintely attractive, especially considering the stock is trading below its estimated intrinsic value. Insider sentiment is also positive, with net buying reported recently, which is always a good sign.

Here's a quick look at the top institutional holders, based on the latest filings:

The commitment of these major players is an anchor for the stock, providing a floor against market volatility, but it hasn't stopped the near-term price dips. The company itself is showing confidence, having invested $290 million in share repurchases year-to-date through the third quarter of fiscal 2025.

Recent Market Reactions to Financial Performance

The stock market has responded sharply to The Toro Company's mixed fiscal 2025 results, prioritizing revenue misses over earnings beats. This is a clear sign of investor caution in the current macroeconomic environment, where growth is highly scrutinized. For example, after the Q3 2025 earnings release in September 2025, the stock dropped 4.63% in pre-market trading.

This negative reaction was despite the company reporting adjusted diluted earnings per share (EPS) of $1.24, which actually surpassed analyst forecasts. The problem was the top line: Q3 net sales were $1.13 billion, missing expectations and representing a 2.2% year-over-year decrease.

The market is really focused on the Residential segment, which saw sales plummet 28% year-over-year in Q3 2025 as homeowners deferred big-ticket purchases. This weakness overshadows the fantastic performance of the Professional segment, which grew sales by 6% in the same quarter. The same pattern occurred in Q1 2025, when a revenue shortfall led to a 7.3% pre-market stock drop.

Analyst Perspectives: The Path to $92.60

Wall Street analysts are looking past the residential slump, maintaining a cautiously optimistic view based on the company's core strengths and operational efficiency programs. The consensus 12-month price target is approximately $92.60, implying a substantial upside of over 34% from recent trading prices.

The bullish case rests on several concrete factors:

• Professional Segment Strength: Continued strong demand for underground construction and golf and grounds equipment is expected to drive growth.
• Margin Expansion: The Professional segment's earnings margin expanded by 250 basis points in Q3 2025, reaching 21.3%.
• Cost Discipline (AMP Program): The Amplifying Maximum Productivity (AMP) program is on track to deliver at least $100 million in annual run rate savings by 2027, which will boost profitability.

The full-year fiscal 2025 adjusted diluted EPS guidance is set at the lower end of the prior range, around $4.15, down from earlier estimates, showing the impact of the residential slowdown. What this estimate hides, though, is the underlying profitability improvement in the Professional segment, which is the real long-term value driver. The average analyst rating is a 'Buy' or 'Moderate Buy,' with price targets ranging from a low of $86.00 to a high of $100.00.