Short Interest in Toast, Inc. (NYSE:TOST) Drops By 21.0%

Key Points

• Short interest in Toast, Inc. decreased by 21.0% in August, with a total of 25,010,000 shares shorted as of August 15th, reflecting a reduction from the previous month.
• Insider selling activity has been notable, with executives selling a combined total of 88,342 shares worth approximately $3.8 million over the last quarter.
• Analysts remain optimistic about Toast, with a consensus rating of "Moderate Buy" and a price target averaging $45.54, with several firms issuing "buy" ratings and raising their price targets recently.

Toast, Inc. (NYSE:TOST - Get Free Report) saw a large decline in short interest in August. As of August 15th, there was short interest totaling 25,010,000 shares, a decline of 21.0% from the July 31st total of 31,670,000 shares. Approximately 5.4% of the company's shares are short sold. Based on an average trading volume of 7,640,000 shares, the days-to-cover ratio is presently 3.3 days. Based on an average trading volume of 7,640,000 shares, the days-to-cover ratio is presently 3.3 days. Approximately 5.4% of the company's shares are short sold.

Analyst Ratings Changes

A number of research analysts have recently weighed in on TOST shares. JPMorgan Chase & Co. raised their target price on Toast from $42.00 to $52.00 and gave the company a "neutral" rating in a report on Wednesday, August 6th. DA Davidson increased their price target on shares of Toast from $40.00 to $46.00 and gave the stock a "neutral" rating in a report on Tuesday, July 29th. Wells Fargo & Company began coverage on shares of Toast in a research report on Wednesday, July 16th. They set a "buy" rating on the stock. Wall Street Zen cut shares of Toast from a "buy" rating to a "hold" rating in a research report on Saturday, September 6th. Finally, Needham & Company LLC increased their price target on shares of Toast from $50.00 to $60.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $45.54.

Toast Stock Down 1.9%

Shares of Toast stock traded down $0.79 on Friday, hitting $40.00. The stock had a trading volume of 6,598,182 shares, compared to its average volume of 7,817,246. Toast has a one year low of $25.96 and a one year high of $49.66. The stock has a market cap of $20.40 billion, a price-to-earnings ratio of 117.65 and a beta of 2.00. The stock's 50-day simple moving average is $44.60 and its two-hundred day simple moving average is $40.46.

Toast (NYSE:TOST - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.10). Toast had a return on equity of 14.19% and a net margin of 4.07%.The firm had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same quarter in the prior year, the business posted $0.02 EPS. The firm's revenue for the quarter was up 24.8% on a year-over-year basis. As a group, equities analysts predict that Toast will post 0.39 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Aman Narang sold 1,719 shares of Toast stock in a transaction on Monday, August 4th. The shares were sold at an average price of $48.38, for a total value of $83,165.22. Following the completion of the sale, the chief executive officer owned 304,300 shares in the company, valued at $14,722,034. The trade was a 0.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CRO Jonathan Vassil sold 1,427 shares of the business's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $48.38, for a total transaction of $69,038.26. Following the sale, the executive directly owned 63,298 shares of the company's stock, valued at approximately $3,062,357.24. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 88,342 shares of company stock worth $3,804,710 over the last ninety days. 12.14% of the stock is owned by company insiders.

Institutional Trading of Toast

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TOST. RiverPark Advisors LLC purchased a new position in Toast during the second quarter valued at $30,000. Ameritas Advisory Services LLC purchased a new position in Toast during the second quarter valued at $31,000. REAP Financial Group LLC lifted its position in Toast by 173.3% during the second quarter. REAP Financial Group LLC now owns 798 shares of the company's stock valued at $35,000 after buying an additional 506 shares during the period. Motco purchased a new position in Toast during the second quarter valued at $44,000. Finally, Loomis Sayles & Co. L P bought a new position in shares of Toast during the second quarter valued at $42,000. Hedge funds and other institutional investors own 82.91% of the company's stock.

About Toast

Toast, Inc operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India. The company offers software products for restaurant operations and point of sale, such as Toast POS, Toast now, multi-location management, kitchen display system, Toast mobile order and pay, Toast catering and events, Toast invoicing, Toast tables, and restaurant retail; and hardware products, including Toast flex, Toast flex for guest, Toast go 2, Toast tap, kiosks, and Delphi by Toast.