Needham & Company LLC Issues Positive Forecast for Toast (NYSE:TOST) Stock Price

Key Points

• Needham raised Toast’s price target from $35 to $45 while maintaining a “buy” rating, implying roughly 32.5% upside from the cited share price.
• Analyst sentiment remains favorable: 18 analysts rate Toast a buy and eight rate it a hold, producing a consensus “Moderate Buy” rating and an average price target of $38.15.
• Toast reported quarterly revenue of $1.91 billion, exceeding the $1.87 billion consensus and increasing 23.1% year over year, although reported EPS of $0.26 missed estimates; insiders have also sold shares, primarily to cover tax obligations on vested equity.

Toast (NYSE:TOST - Get Free Report) had its price target hoisted by Needham & Company LLC from $35.00 to $45.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's target price would suggest a potential upside of 32.48% from the company's current price.

Several other analysts also recently weighed in on TOST. UBS Group decreased their target price on Toast from $40.00 to $34.00 and set a "buy" rating for the company in a research note on Friday, May 8th. Mizuho dropped their target price on shares of Toast from $45.00 to $38.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 12th. Jefferies Financial Group restated a "buy" rating and issued a $38.00 price target on shares of Toast in a research report on Monday. BMO Capital Markets reiterated an "outperform" rating on shares of Toast in a research note on Monday, June 1st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Toast in a research report on Wednesday, May 20th. Eighteen equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $38.15.

Toast Price Performance

Shares of TOST opened at $33.97 on Wednesday. The company has a market capitalization of $17.53 billion, a PE ratio of 52.26 and a beta of 1.72. Toast has a one year low of $22.26 and a one year high of $49.66. The company's fifty day moving average price is $27.87 and its 200 day moving average price is $27.83.

Toast (NYSE:TOST - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.32 by ($0.06). The firm had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.87 billion. Toast had a net margin of 6.39% and a return on equity of 20.86%. The firm's revenue was up 23.1% on a year-over-year basis. During the same quarter last year, the company earned $0.13 earnings per share. Analysts anticipate that Toast will post 0.97 earnings per share for the current year.

Insider Activity at Toast

In related news, General Counsel Brian R. Elworthy sold 6,352 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total transaction of $183,255.20. Following the sale, the general counsel directly owned 196,909 shares in the company, valued at $5,680,824.65. This represents a 3.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Stephen Fredette sold 9,146 shares of the stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total value of $263,862.10. Following the sale, the president owned 931,449 shares in the company, valued at $26,872,303.65. The trade was a 0.97% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 173,545 shares of company stock valued at $4,748,501. Insiders own 10.03% of the company's stock.

Institutional Trading of Toast

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BOKF NA raised its stake in shares of Toast by 4.5% during the third quarter. BOKF NA now owns 8,023 shares of the company's stock worth $293,000 after buying an additional 345 shares during the last quarter. Fifth Third Wealth Advisors LLC increased its holdings in Toast by 0.5% in the first quarter. Fifth Third Wealth Advisors LLC now owns 67,909 shares of the company's stock valued at $1,800,000 after purchasing an additional 358 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in Toast by 1.7% in the second quarter. The Manufacturers Life Insurance Company now owns 22,857 shares of the company's stock valued at $1,012,000 after buying an additional 380 shares during the period. Seven Mile Advisory boosted its holdings in Toast by 3.1% during the third quarter. Seven Mile Advisory now owns 12,689 shares of the company's stock worth $463,000 after buying an additional 381 shares during the last quarter. Finally, HM Payson & Co. grew its position in shares of Toast by 6.2% during the 4th quarter. HM Payson & Co. now owns 6,742 shares of the company's stock worth $239,000 after buying an additional 392 shares during the period. 82.91% of the stock is owned by institutional investors.

Key Toast News

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Revenue exceeded expectations. Toast reported Q2 revenue of $1.91 billion, above the $1.87 billion analyst consensus and 23.1% higher than a year earlier. The company also added a record 9,500 net locations, indicating continued demand for its restaurant technology platform. Toast Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Recurring revenue and operating leverage improved. Management said recurring gross profit streams grew 28% and GAAP operating-income margins expanded to 26%. These trends support the view that Toast is scaling beyond its core point-of-sale business and becoming more profitable. Toast Q2 2026 Earnings Call Transcript
• Positive Sentiment: Analyst sentiment remains supportive. Toast carries a “Moderate Buy” consensus rating, with an average price target of $37.27. Recent analysts have raised targets, including Truist Financial, which increased its target to $33 while maintaining a buy rating.
• Neutral Sentiment: AI, subscription and fintech adoption are key growth drivers. Pre-earnings estimates anticipated approximately 20.8% revenue growth from these businesses, but investors remain focused on whether Toast can sustain growth while controlling costs. Toast to Report Q2 Earnings
• Negative Sentiment: Profitability comparisons were mixed. One report listed EPS at $0.26, below the $0.32 consensus, while Zacks reported adjusted EPS of $0.34, above estimates. The conflicting figures may cause investors to examine the precise earnings measure and the quality of Toast’s profit growth. Toast Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: The chief revenue officer sold shares. Jonathan Vassil sold 14,280 shares worth approximately $469,700, reducing his position by 16.95%. Because the sale occurred under a pre-arranged Rule 10b5-1 plan, it is a limited bearish signal. SEC insider-trading filing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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