Toast (NYSE:TOST) Hits New 12-Month Low on Analyst Downgrade

Key Points

• Toast shares hit a new 52-week low after Wall Street Zen downgraded the stock from buy to hold. The stock fell as low as $24.04 and was last trading near $25, well below its prior close of $29.38.
• Despite the selloff, analyst sentiment remains broadly positive overall, with a Moderate Buy consensus and an average price target of $38.71. Several firms still have buy or outperform ratings, though some have trimmed targets or turned more cautious.
• Toast’s recent fundamentals remain strong, with Q1 revenue of about $1.63 billion and roughly 22% year-over-year growth. The company also raised its FY2026 adjusted EBITDA outlook to $790 million to $810 million, but investors appear more focused on valuation and earnings concerns.

Toast, Inc. (NYSE:TOST - Get Free Report)'s stock price reached a new 52-week low on Saturday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The stock traded as low as $24.04 and last traded at $25.0270, with a volume of 34854779 shares changing hands. The stock had previously closed at $29.38.

A number of other research analysts have also recently weighed in on the stock. Sanford C. Bernstein set a $39.00 price objective on shares of Toast in a research report on Monday, February 16th. DA Davidson restated a "neutral" rating and issued a $33.00 target price on shares of Toast in a report on Tuesday. Oppenheimer reaffirmed an "outperform" rating and set a $36.00 price target on shares of Toast in a research note on Friday. Morgan Stanley set a $45.00 price target on shares of Toast in a report on Friday. Finally, Citigroup reduced their price objective on shares of Toast from $42.00 to $36.00 and set a "buy" rating on the stock in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $38.71.

Insider Buying and Selling at Toast

In related news, General Counsel Brian R. Elworthy sold 3,664 shares of the firm's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $26.19, for a total value of $95,960.16. Following the transaction, the general counsel owned 243,642 shares of the company's stock, valued at $6,380,983.98. This trade represents a 1.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, 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 sale, the executive owned 146,618 shares of the company's stock, valued at $3,839,925.42. The trade was a 4.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 39,783 shares of company stock valued at $1,041,917. 12.14% of the stock is owned by company insiders.

Toast News Summary

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

Institutional Trading of Toast

Several institutional investors and hedge funds have recently modified their holdings of TOST. PNC Financial Services Group Inc. boosted its holdings in shares of Toast by 34.8% in the first quarter. PNC Financial Services Group Inc. now owns 20,717 shares of the company's stock valued at $549,000 after purchasing an additional 5,353 shares during the period. Amova Asset Management Americas Inc. increased its holdings in Toast by 0.4% during the 1st quarter. Amova Asset Management Americas Inc. now owns 3,817,961 shares of the company's stock worth $101,176,000 after purchasing an additional 16,614 shares during the period. Meeder Asset Management Inc. raised its position in Toast by 275.6% during the 1st quarter. Meeder Asset Management Inc. now owns 19,235 shares of the company's stock valued at $510,000 after purchasing an additional 14,114 shares in the last quarter. WCM Investment Management LLC raised its position in Toast by 1.3% during the 1st quarter. WCM Investment Management LLC now owns 55,059 shares of the company's stock valued at $1,435,000 after purchasing an additional 692 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Toast by 4.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,522,094 shares of the company's stock worth $40,340,000 after buying an additional 61,269 shares during the period. Institutional investors own 82.91% of the company's stock.

Toast Stock Performance

The company has a fifty day simple moving average of $27.82 and a two-hundred day simple moving average of $31.77. The firm has a market capitalization of $12.90 billion, a PE ratio of 38.50 and a beta of 1.81.

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

Toast declared that its board has approved a share repurchase plan on Thursday, February 12th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

About Toast

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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