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

Key Points

• Analysts have a consensus rating of "Moderate Buy" on Toast from 24 firms (17 buys, 7 holds) with an average 12‑month target of $40.46, versus the stock's recent open near $26.07.
• Toast missed EPS estimates in its latest quarter (reported $0.16 vs. $0.24 expected) but posted revenue of $1.63B, up 22% year‑over‑year and roughly in line with forecasts.
• Insiders have sold a total of 100,856 shares (~$3.54M) over the past 90 days, insiders own 12.14% of the stock, and institutional investors hold about 82.91%.

Shares of Toast, Inc. (NYSE:TOST - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-four ratings firms that are currently covering the firm, MarketBeat Ratings reports. Seven equities research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $40.4583.

A number of research analysts have commented on the stock. Needham & Company LLC decreased their target price on shares of Toast from $60.00 to $35.00 and set a "buy" rating on the stock in a research report on Friday, February 13th. Canaccord Genuity Group set a $37.00 price target on shares of Toast in a research note on Friday, February 13th. Stephens set a $42.00 price objective on shares of Toast in a report on Friday, January 16th. Mizuho lowered their price objective on shares of Toast from $57.00 to $45.00 and set an "outperform" rating for the company in a research report on Tuesday, February 17th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Toast in a report on Monday, December 29th.

Toast Stock Up 1.7%

NYSE:TOST opened at $26.07 on Tuesday. Toast has a 52 week low of $24.35 and a 52 week high of $49.66. The stock's fifty day moving average is $28.67 and its two-hundred day moving average is $33.61. The company has a market capitalization of $13.66 billion, a P/E ratio of 48.27 and a beta of 1.95.

Toast (NYSE:TOST - Get Free Report) last released its quarterly earnings results 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). The business had revenue of $1.63 billion for the quarter, compared to analysts' expectations of $1.62 billion. Toast had a return on equity of 18.14% and a net margin of 5.56%.The business's revenue for the quarter was up 22.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.05 earnings per share. Sell-side analysts anticipate that Toast will post 0.39 earnings per share for the current fiscal year.

Toast declared 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 reacquire shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other Toast news, General Counsel Brian R. Elworthy sold 3,303 shares of the business's stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $34.38, for a total transaction of $113,557.14. Following the sale, the general counsel directly owned 235,757 shares in the company, valued at $8,105,325.66. This represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Aman Narang sold 8,591 shares of the stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $34.38, for a total transaction of $295,358.58. Following the sale, the chief executive officer directly owned 338,850 shares in the company, valued at $11,649,663. This represents a 2.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 100,856 shares of company stock worth $3,540,449 over the last 90 days. 12.14% of the stock is owned by insiders.

Hedge Funds Weigh In On Toast

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TOST. Bayban acquired a new stake in shares of Toast in the fourth quarter valued at $25,000. Quent Capital LLC acquired a new position in Toast during the 3rd quarter worth $27,000. SHP Wealth Management purchased a new stake in Toast during the 4th quarter worth about $29,000. Strive Financial Group LLC purchased a new stake in Toast during the 4th quarter worth about $29,000. Finally, Alpine Bank Wealth Management acquired a new stake in Toast in the 3rd quarter valued at about $30,000. Hedge funds and other institutional investors own 82.91% 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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