Toast (NYSE:TOST) Posts Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Toast missed quarterly EPS: the company reported $0.16 per share versus analysts' $0.24 estimate, a $0.08 shortfall, with a return on equity of 15.77% and a net margin of 4.68%.
• Shares fell sharply on heavy volume, trading down $1.89 to $26.13 with 24.27M shares changing hands (vs. avg. 11.77M); market cap is about $13.46B and the stock sits near its 52-week low of $25.91.
• Insider selling and mixed analyst stance: the CEO and CFO sold shares in early January and insiders sold ~100,856 shares in the past 90 days, while institutional ownership is ~82.9% and the consensus rating is "Moderate Buy" with an average target of $45.55.

Toast (NYSE:TOST - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.08), Zacks reports. Toast had a return on equity of 15.77% and a net margin of 4.68%.

Toast Price Performance

Shares of NYSE TOST traded down $1.89 during midday trading on Thursday, reaching $26.13. 24,274,437 shares of the company traded hands, compared to its average volume of 11,769,151. The company has a market cap of $13.46 billion, a price-to-earnings ratio of 60.77 and a beta of 1.93. The stock has a 50-day moving average price of $33.90 and a 200 day moving average price of $37.51. Toast has a 52 week low of $25.91 and a 52 week high of $49.66.

Analyst Upgrades and Downgrades

TOST has been the subject of a number of recent research reports. Oppenheimer lowered their price objective on Toast from $49.00 to $48.00 and set an "outperform" rating for the company in a research note on Monday, January 12th. JPMorgan Chase & Co. raised shares of Toast from a "neutral" rating to an "overweight" rating and set a $43.00 price target for the company in a report on Thursday, December 4th. Royal Bank Of Canada set a $45.00 price target on shares of Toast in a research report on Wednesday, November 5th. Truist Financial set a $42.00 price objective on shares of Toast in a research report on Tuesday, January 20th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Toast in a research note on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $45.55.

Insider Transactions at Toast

In other Toast news, CFO Elena Gomez sold 6,672 shares of the firm'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 $229,383.36. Following the transaction, the chief financial officer owned 162,153 shares of the company's stock, valued at approximately $5,574,820.14. This trade represents a 3.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Aman Narang sold 8,591 shares of the company's stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $34.38, for a total transaction of $295,358.58. Following the completion of the sale, the chief executive officer directly owned 338,850 shares of the company's stock, valued at approximately $11,649,663. This represents a 2.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 100,856 shares of company stock worth $3,540,449 over the last ninety days. Insiders own 12.14% of the company's stock.

Institutional Investors Weigh In On Toast

A number of institutional investors have recently added to or reduced their stakes in the company. State Street Corp increased its position in shares of Toast by 3.5% during the 3rd quarter. State Street Corp now owns 9,538,312 shares of the company's stock valued at $348,244,000 after purchasing an additional 325,423 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Toast by 24.9% during the third quarter. Arrowstreet Capital Limited Partnership now owns 4,343,474 shares of the company's stock valued at $158,580,000 after buying an additional 865,326 shares in the last quarter. Renaissance Technologies LLC grew its holdings in Toast by 40.4% during the fourth quarter. Renaissance Technologies LLC now owns 3,453,928 shares of the company's stock worth $122,649,000 after acquiring an additional 993,116 shares during the period. ValueAct Holdings L.P. acquired a new position in Toast during the third quarter worth about $124,032,000. Finally, Northern Trust Corp raised its position in Toast by 9.0% in the third quarter. Northern Trust Corp now owns 3,118,343 shares of the company's stock worth $113,851,000 after acquiring an additional 256,867 shares in the last quarter. 82.91% of the stock is currently owned by institutional investors and hedge funds.

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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