Lecap Asset Management Ltd. Increases Stock Position in Toast, Inc. $TOST

Key Points

• Lecap Asset Management increased its stake in Toast by 206.7% in Q4 to 59,123 shares worth $2.10 million, making Toast 0.8% of Lecap’s holdings and its 16th-largest position.
• Toast missed quarterly EPS estimates ($0.16 vs. $0.24) while revenue rose 22% year-over-year to $1.63 billion; analysts maintain a "Moderate Buy" consensus with an average price target of $39.88 versus the current ~ $29.12 share price.
• Corporate insiders have been net sellers — the CEO and CFO sold shares April 2 and insiders sold 46,030 shares worth $1.23 million over the past 90 days — while institutional investors own about 82.91% of the stock.

Lecap Asset Management Ltd. increased its position in shares of Toast, Inc. (NYSE:TOST - Free Report) by 206.7% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 59,123 shares of the company's stock after buying an additional 39,847 shares during the period. Toast accounts for 0.8% of Lecap Asset Management Ltd.'s holdings, making the stock its 16th biggest position. Lecap Asset Management Ltd.'s holdings in Toast were worth $2,099,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Quent Capital LLC purchased a new stake in Toast in the 3rd quarter worth $27,000. Alpine Bank Wealth Management purchased a new stake in Toast in the 3rd quarter worth $30,000. Central Pacific Bank Trust Division increased its holdings in Toast by 123.5% in the 4th quarter. Central Pacific Bank Trust Division now owns 943 shares of the company's stock worth $33,000 after acquiring an additional 521 shares in the last quarter. Wolff Wiese Magana LLC purchased a new stake in Toast in the 3rd quarter worth $37,000. Finally, Root Financial Partners LLC purchased a new stake in Toast in the 3rd quarter worth $42,000. 82.91% of the stock is owned by hedge funds and other institutional investors.

Toast Stock Up 2.2%

Shares of TOST opened at $29.12 on Friday. Toast, Inc. has a 52-week low of $24.35 and a 52-week high of $49.66. The firm's fifty day moving average is $27.46 and its two-hundred day moving average is $32.47. The stock has a market cap of $15.26 billion, a PE ratio of 53.92 and a beta of 1.90.

Toast (NYSE:TOST - Get Free Report) last announced its 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 business had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.62 billion. During the same period last year, the firm earned $0.05 EPS. The company's revenue for the quarter was up 22.0% compared to the same quarter last year. As a group, research analysts anticipate that Toast, Inc. will post 0.39 earnings per share for the current year.

Toast declared that its Board of Directors has authorized a stock repurchase plan 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 plans are generally an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on TOST. Wolfe Research lowered shares of Toast from an "outperform" rating to a "peer perform" rating in a report on Thursday, January 8th. Oppenheimer cut their price target on shares of Toast from $48.00 to $39.00 and set an "outperform" rating for the company in a report on Friday, February 13th. Canaccord Genuity Group set a $37.00 price target on shares of Toast in a report on Friday, February 13th. Citigroup cut their price target on shares of Toast from $51.00 to $42.00 and set a "buy" rating for the company in a report on Friday, February 13th. Finally, Sanford C. Bernstein set a $39.00 price target on shares of Toast in a report on Monday, February 16th. Seventeen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $39.88.

Insider Activity at Toast

In other Toast news, CEO Aman Narang sold 13,463 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 $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. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Elena Gomez sold 8,929 shares of the business's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $26.19, for a total transaction of $233,850.51. Following the transaction, the chief financial officer directly owned 173,064 shares in the company, valued at approximately $4,532,546.16. The trade was a 4.91% 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 90 days. Corporate insiders own 12.14% of the company's stock.

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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