Toromont Industries (TSE:TIH) Trading Down 8.6% - Here's Why

Key Points

• Toromont Industries shares fell 8.6% to C$206.41 in mid-day trading, with volume about 41% above its daily average.
• Despite the sell-off, analysts remain broadly positive: five rate the stock “Buy” and three “Hold,” resulting in a “Moderate Buy” consensus and an average price target of C$238.67.
• The company reported C$1.13 in quarterly EPS on C$1.23 billion in revenue and recently paid a quarterly dividend of C$0.56, equivalent to a 1.1% annual yield.

Toromont Industries Ltd. (TSE:TIH - Get Free Report)'s share price fell 8.6% during mid-day trading on Monday . The stock traded as low as C$204.65 and last traded at C$206.41. Approximately 371,997 shares traded hands during trading, an increase of 41% from the average daily volume of 263,023 shares. The stock had previously closed at C$225.77.

Analyst Ratings Changes

TIH has been the topic of several recent research reports. Scotiabank upped their price target on shares of Toromont Industries from C$229.00 to C$238.00 and gave the company a "sector perform" rating in a report on Tuesday, July 7th. Raymond James Financial upgraded Toromont Industries from a "market perform" rating to an "outperform" rating and lifted their price objective for the company from C$190.00 to C$235.00 in a research note on Thursday, June 18th. Canaccord Genuity Group raised Toromont Industries from a "hold" rating to a "buy" rating and boosted their price objective for the company from C$200.00 to C$235.00 in a report on Monday, April 27th. Scotia upped their target price on Toromont Industries from C$208.00 to C$229.00 and gave the stock a "sector perform" rating in a research note on Thursday, April 30th. Finally, BMO Capital Markets raised their target price on Toromont Industries from C$215.00 to C$228.00 in a report on Wednesday, April 29th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of C$238.67.

Toromont Industries Trading Down 8.0%

The company has a market cap of C$16.93 billion, a price-to-earnings ratio of 33.01, a price-to-earnings-growth ratio of 3.72 and a beta of 0.98. The company has a quick ratio of 1.38, a current ratio of 3.17 and a debt-to-equity ratio of 25.19. The company's 50-day moving average is C$225.07 and its 200 day moving average is C$206.99.

Toromont Industries (TSE:TIH - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported C$1.13 earnings per share for the quarter. Toromont Industries had a net margin of 9.64% and a return on equity of 16.06%. The business had revenue of C$1.23 billion during the quarter. Research analysts predict that Toromont Industries Ltd. will post 6.5892495 EPS for the current year.

Toromont Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, July 2nd were paid a $0.56 dividend. This represents a $2.24 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, June 5th. Toromont Industries's payout ratio is currently 33.70%.

Toromont Industries Company Profile

Toromont operates through two business segments: The Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory - spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario, and Manitoba in addition to most of the territory of Nunavut. In addition, the Equipment Group includes industry leading rental operations, and a complementary material handling business.

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