Toast, Inc. (NYSE:TOST) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Toast “Moderate Buy”: Of 27 analysts, 17 recommend buying and 10 advise holding. The average 12-month price target is $39, compared with the stock’s recent price of $35.17.
• Toast posted mixed quarterly results: Revenue rose 23.1% year over year to $1.91 billion, exceeding estimates, while adjusted EPS of $0.26 fell short of the $0.32 consensus.
• Institutional ownership is strong, but insiders have been selling: Institutions own 82.91% of Toast, with several major investors increasing their positions. Insiders sold 508,253 shares worth about $17.7 million over the past three months, including sales by the CEO and chief revenue officer.

Toast, Inc. (NYSE:TOST - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twenty-seven analysts that are currently covering the stock, Marketbeat.com reports. Ten equities research analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $39.00.

A number of brokerages have recently issued reports on TOST. Citigroup raised their price objective on Toast from $36.00 to $39.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Mizuho dropped their target price on Toast from $45.00 to $38.00 and set an "outperform" rating for the company in a report on Tuesday, May 12th. BMO Capital Markets raised their price target on Toast from $35.00 to $40.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 5th. Rothschild & Co Redburn restated a "neutral" rating and set a $35.00 price target on shares of Toast in a research report on Tuesday, May 12th. Finally, Piper Sandler lifted their price target on Toast from $32.00 to $39.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th.

Insider Buying and Selling

In related news, CRO Jonathan Vassil sold 85,280 shares of the company's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $36.34, for a total transaction of $3,099,075.20. Following the completion of the sale, the executive directly owned 69,966 shares in the company, valued at $2,542,564.44. This represents a 54.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aman Narang sold 124,542 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $35.29, for a total transaction of $4,395,087.18. Following the completion of the sale, the chief executive officer directly owned 175,458 shares in the company, valued at approximately $6,191,912.82. This trade represents a 41.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 508,253 shares of company stock valued at $17,688,694 over the last three months. 10.03% of the stock is owned by company insiders.

Institutional Trading of Toast

Several large investors have recently modified their holdings of TOST. California State Teachers Retirement System raised its position in Toast by 2,643.0% during the 2nd quarter. California State Teachers Retirement System now owns 17,903,895 shares of the company's stock valued at $498,086,000 after purchasing an additional 17,251,171 shares during the last quarter. Norges Bank bought a new stake in shares of Toast in the 4th quarter worth approximately $202,808,000. ValueAct Holdings L.P. increased its stake in shares of Toast by 135.9% during the fourth quarter. ValueAct Holdings L.P. now owns 8,015,277 shares of the company's stock valued at $284,622,000 after buying an additional 4,618,077 shares during the period. XN LP increased its stake in shares of Toast by 50.8% during the fourth quarter. XN LP now owns 8,988,386 shares of the company's stock valued at $319,178,000 after buying an additional 3,029,856 shares during the period. Finally, Principal Financial Group Inc. raised its holdings in shares of Toast by 36.0% during the first quarter. Principal Financial Group Inc. now owns 7,977,244 shares of the company's stock valued at $211,478,000 after acquiring an additional 2,111,009 shares in the last quarter. 82.91% of the stock is owned by institutional investors.

Toast Stock Performance

Shares of TOST opened at $35.17 on Friday. The firm has a market cap of $18.08 billion, a price-to-earnings ratio of 45.09 and a beta of 1.72. Toast has a fifty-two week low of $22.26 and a fifty-two week high of $45.64. The firm has a 50 day moving average price of $31.36 and a 200-day moving average price of $28.28.

Toast (NYSE:TOST - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.06). The business had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.87 billion. Toast had a net margin of 7.14% and a return on equity of 23.90%. Toast's revenue for the quarter was up 23.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.13 EPS. As a group, equities research analysts predict that Toast will post 1 earnings per share for the current year.

Toast Company Profile

Toast, Inc NYSE: TOST is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.

Toast's product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.

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