Toast (NYSE:TOST) Price Target Raised to $40.00

Key Points

• Truist Financial raised Toast’s price target from $38 to $40 and reiterated its Buy rating, implying about 15% upside from the share price cited in the report.
• Analyst sentiment is broadly positive: 17 analysts rate Toast Buy and 11 Hold, producing a Moderate Buy consensus and an average target price of $38.73.
• In its latest quarter, Toast reported revenue of $1.98 billion, up 21.3% year over year and slightly above estimates, but EPS of $0.29 missed the $0.37 consensus.

Toast (NYSE:TOST - Get Free Report) had its price target boosted by equities researchers at Truist Financial from $38.00 to $40.00 in a report released on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Truist Financial's price objective points to a potential upside of 15.06% from the company's current price.

Several other equities analysts also recently commented on the stock. Barclays upped their price objective on shares of Toast from $35.00 to $39.00 and gave the company an "overweight" rating in a report on Wednesday, August 5th. Needham & Company LLC restated a "buy" rating and set a $45.00 target price on shares of Toast in a research note on Wednesday, November 4th. Evercore reaffirmed an "outperform" rating on shares of Toast in a report on Wednesday, August 5th. BMO Capital Markets lifted their target price on shares of Toast from $35.00 to $40.00 and gave the stock an "outperform" rating in a report on Wednesday, August 5th. Finally, Morgan Stanley decreased their price target on shares of Toast from $45.00 to $42.00 and set an "overweight" rating on the stock in a research note on Wednesday, November 4th. Seventeen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $38.73.

Toast Trading Up 0.3%

TOST stock opened at $34.76 on Tuesday. Toast has a 1-year low of $22.26 and a 1-year high of $38.64. The business's 50 day simple moving average is $31.85 and its 200 day simple moving average is $29.42. The firm has a market capitalization of $17.87 billion, a PE ratio of 38.20 and a beta of 1.74.

Toast (NYSE:TOST - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.08). Toast had a net margin of 7.69% and a return on equity of 26.39%. The business had revenue of $1.98 billion for the quarter, compared to analyst estimates of $1.97 billion. During the same period in the prior year, the business earned $0.16 EPS. The company's revenue for the quarter was up 21.3% compared to the same quarter last year. As a group, sell-side analysts predict that Toast will post 1.00 EPS for the current fiscal year.

Insider Buying and Selling at Toast

In related news, President Stephen Fredette sold 9,368 shares of the business's stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $29.35, for a total value of $274,950.80. Following the completion of the sale, the president directly owned 941,692 shares in the company, valued at $27,638,660.20. The trade was a 0.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Elena Gomez sold 11,886 shares of the company's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $29.35, for a total value of $348,854.10. Following the completion of the transaction, the chief financial officer directly owned 171,957 shares in the company, valued at approximately $5,046,937.95. This represents a 6.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 195,933 shares of company stock worth $6,608,185 in the last 90 days. Company insiders own 10.03% of the company's stock.

Institutional Investors Weigh In On Toast

A number of institutional investors have recently modified their holdings of TOST. Principal Financial Group Inc. increased its position in Toast by 36.0% during the first quarter. Principal Financial Group Inc. now owns 7,977,244 shares of the company's stock worth $211,478,000 after acquiring an additional 2,111,009 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Toast by 1.3% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,950,962 shares of the company's stock valued at $201,508,000 after purchasing an additional 89,316 shares during the period. Bank of America Corp DE boosted its holdings in Toast by 10.6% in the 1st quarter. Bank of America Corp DE now owns 4,866,197 shares of the company's stock valued at $129,003,000 after purchasing an additional 465,006 shares during the period. Renaissance Technologies LLC grew its position in shares of Toast by 25.1% during the 1st quarter. Renaissance Technologies LLC now owns 4,321,437 shares of the company's stock worth $114,561,000 after purchasing an additional 867,509 shares in the last quarter. Finally, Amova Asset Management Americas Inc. grew its position in shares of Toast by 0.4% during the 1st quarter. Amova Asset Management Americas Inc. now owns 3,817,961 shares of the company's stock worth $101,176,000 after purchasing an additional 16,614 shares in the last quarter. Institutional investors own 82.91% of the company's stock.

About Toast

Toast, Inc provides a cloud-based technology platform designed for restaurants. Its products combine point-of-sale software and hardware with payment processing, helping restaurants manage in-person transactions and day-to-day operations.

The platform includes tools for online ordering, delivery, marketing, customer loyalty, payroll, and team management, alongside features for managing menus and restaurant operations. Restaurants can use Toast's products together or select services to fit their needs.

Founded in 2011 and headquartered in Boston, Toast serves restaurants in the United States and selected international markets.

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