Capelight Capital Asset Management LP Purchases Shares of 60,000 Toast, Inc. $TOST

Key Points

• Capelight Capital bought 60,000 shares of Toast (TOST) in Q4—about $2.13 million—making Toast 1.7% of the firm's portfolio and its 16th-largest holding.
• Toast reported Q4 EPS of $0.16 versus $0.24 expected while revenue rose 22% to $1.63 billion, and analysts maintain a consensus "Moderate Buy" with an average price target of $39.88 after several firms cut targets.
• Insiders have been net sellers recently, disposing of a total of 46,030 shares worth $1.23 million over the past three months—including CRO and CEO sales on April 2—with insiders now owning 12.14% of the stock.

Capelight Capital Asset Management LP purchased a new stake in Toast, Inc. (NYSE:TOST - Free Report) during the fourth quarter, according to the company in its most recent filing with the SEC. The firm purchased 60,000 shares of the company's stock, valued at approximately $2,131,000. Toast comprises 1.7% of Capelight Capital Asset Management LP's investment portfolio, making the stock its 16th biggest position.

A number of other hedge funds also recently made changes to their positions in TOST. Quent Capital LLC acquired a new position in shares of Toast in the 3rd quarter valued at $27,000. Alpine Bank Wealth Management acquired a new position in shares of Toast in the 3rd quarter valued at $30,000. Central Pacific Bank Trust Division boosted its holdings in shares of Toast by 123.5% in the 4th quarter. Central Pacific Bank Trust Division now owns 943 shares of the company's stock valued at $33,000 after purchasing an additional 521 shares during the last quarter. Wolff Wiese Magana LLC acquired a new position in shares of Toast in the 3rd quarter valued at $37,000. Finally, Root Financial Partners LLC acquired a new position in shares of Toast in the 3rd quarter valued at $42,000. Institutional investors and hedge funds own 82.91% of the company's stock.

Insider Activity

In related news, CRO Jonathan Vassil sold 6,438 shares of Toast stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $26.19, for a total transaction of $168,611.22. Following the sale, the executive owned 146,618 shares of the company's stock, valued at $3,839,925.42. The trade was a 4.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Aman Narang sold 13,463 shares of Toast stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $26.19, for a total transaction of $352,595.97. Following the sale, the chief executive officer directly owned 54,013 shares in the company, valued at $1,414,600.47. This trade represents a 19.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 46,030 shares of company stock worth $1,231,451 over the last three months. 12.14% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

TOST has been the topic of a number of research reports. Needham & Company LLC cut their target price on shares of Toast from $60.00 to $35.00 and set a "buy" rating on the stock in a research note on Friday, February 13th. Truist Financial set a $36.00 target price on shares of Toast in a research note on Wednesday, February 25th. Citigroup cut their target price on shares of Toast from $51.00 to $42.00 and set a "buy" rating on the stock in a research note on Friday, February 13th. UBS Group set a $40.00 target price on shares of Toast in a research note on Friday, February 13th. Finally, DA Davidson cut their target price on shares of Toast from $36.00 to $33.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 17th. Seventeen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $39.88.

Toast Price Performance

Toast stock opened at $27.04 on Wednesday. Toast, Inc. has a 12-month low of $24.35 and a 12-month high of $49.66. The company has a market capitalization of $14.17 billion, a price-to-earnings ratio of 50.08 and a beta of 1.90. The firm's fifty day moving average price is $27.40 and its 200 day moving average price is $32.61.

Toast (NYSE:TOST - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.08). Toast had a return on equity of 18.14% and a net margin of 5.56%.The firm had revenue of $1.63 billion for the quarter, compared to analysts' expectations of $1.62 billion. During the same period last year, the firm earned $0.05 EPS. The business's quarterly revenue was up 22.0% on a year-over-year basis. Analysts forecast that Toast, Inc. will post 0.39 earnings per share for the current fiscal year.

Toast announced that its board has initiated a stock buyback program on Thursday, February 12th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

About Toast

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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