Comerica Bank Reduces Stock Position in Toast, Inc. $TOST

Key Points

• Comerica Bank sharply cut its Toast stake by 91.4% in the fourth quarter, selling 325,897 shares and leaving it with 30,628 shares worth about $1.09 million.
• Toast’s latest business updates were generally positive, including a raised FY2026 adjusted EBITDA outlook of $790 million to $810 million and Q1 revenue of about $1.63 billion, up roughly 22% year over year.
• Despite the growth, the stock is facing caution from analysts and the market: Citigroup lowered its price target to $36 from $42, and Toast shares were trading near $25.03, well below their 1-year high.

Comerica Bank reduced its holdings in Toast, Inc. (NYSE:TOST - Free Report) by 91.4% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 30,628 shares of the company's stock after selling 325,897 shares during the period. Comerica Bank's holdings in Toast were worth $1,088,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in TOST. NewEdge Advisors LLC grew its stake in shares of Toast by 1,555.5% in the 1st quarter. NewEdge Advisors LLC now owns 17,432 shares of the company's stock worth $578,000 after buying an additional 16,379 shares in the last quarter. Cerity Partners LLC grew its stake in shares of Toast by 24.0% in the 2nd quarter. Cerity Partners LLC now owns 81,574 shares of the company's stock worth $3,613,000 after buying an additional 15,774 shares in the last quarter. State Street Corp grew its stake in shares of Toast by 2.7% in the 2nd quarter. State Street Corp now owns 9,212,889 shares of the company's stock worth $408,039,000 after buying an additional 245,276 shares in the last quarter. Frontier Capital Management Co. LLC purchased a new position in shares of Toast during the 2nd quarter worth about $4,479,000. Finally, Sei Investments Co. boosted its stake in shares of Toast by 24.6% during the 2nd quarter. Sei Investments Co. now owns 1,030,007 shares of the company's stock worth $45,619,000 after purchasing an additional 203,404 shares during the period. 82.91% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Toast

In related news, CRO Jonathan Vassil sold 6,438 shares of Toast stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $26.19, for a total transaction of $168,611.22. Following the completion of the sale, the executive owned 146,618 shares in the company, valued at $3,839,925.42. This trade represents a 4.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Aman Narang sold 13,463 shares of Toast stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $26.19, for a total transaction of $352,595.97. Following the sale, the chief executive officer owned 54,013 shares of the company's stock, valued at $1,414,600.47. The trade was a 19.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 39,783 shares of company stock worth $1,041,917 over the last ninety days. 12.14% of the stock is currently owned by company insiders.

Key Toast News

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Toast raised its full-year profitability outlook, guiding to $790 million to $810 million in adjusted EBITDA for FY2026, supported by expected 21% to 23% recurring gross profit growth. Article Title
• Positive Sentiment: Revenue continued to grow at a strong pace, with Q1 sales of about $1.63 billion and year-over-year growth around 22%, showing the business is still expanding quickly. Article Title
• Neutral Sentiment: Analysts were mixed on the quarter: some reports said Toast beat earnings expectations, while others said adjusted EPS came in below estimates depending on the metric used, which may be adding to the confusion around the stock. Article Title
• Neutral Sentiment: Toast’s Q1 earnings call transcript and related coverage suggest investors are still parsing management’s commentary for signs of margin durability and growth momentum. Article Title
• Negative Sentiment: The stock is under pressure because the market appears focused more on any earnings disappointment and valuation concerns than on the improved guidance. Article Title
• Negative Sentiment: Citigroup cut its price target on Toast to $36 from $42, signaling a more cautious near-term outlook even while maintaining a buy rating. Article Title

Analysts Set New Price Targets

TOST has been the subject of a number of recent analyst reports. Evercore raised shares of Toast from an "in-line" rating to an "outperform" rating and set a $40.00 price target for the company in a research note on Tuesday, January 20th. Truist Financial set a $36.00 price target on shares of Toast in a research note on Wednesday, February 25th. Citigroup dropped their price target on shares of Toast from $42.00 to $36.00 and set a "buy" rating for the company in a research note on Friday. Wall Street Zen cut shares of Toast from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Needham & Company LLC dropped their price target on shares of Toast from $60.00 to $35.00 and set a "buy" rating for the company in a research note on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $38.71.

Toast Price Performance

Shares of TOST opened at $25.03 on Friday. Toast, Inc. has a 1-year low of $24.04 and a 1-year high of $49.66. The company has a 50-day moving average of $27.82 and a 200 day moving average of $31.77. The firm has a market capitalization of $12.90 billion, a price-to-earnings ratio of 38.50 and a beta of 1.81.

Toast (NYSE:TOST - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.16 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.08). Toast had a net margin of 6.39% and a return on equity of 20.87%. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.62 billion. During the same quarter in the previous year, the business earned $0.05 EPS. The company's quarterly revenue was up 22.0% compared to the same quarter last year. On average, equities analysts anticipate that Toast, Inc. will post 0.81 earnings per share for the current fiscal year.

Toast announced that its Board of Directors has authorized a share repurchase plan on Thursday, February 12th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

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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