Toast (NYSE:TOST) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Toast from a “strong-buy” to a “hold” rating, adding to a mixed analyst outlook on the stock.
• Other analysts remain largely positive: Toast currently has a consensus “Moderate Buy” rating and an average price target of $37.41, with several firms maintaining buy/overweight views.
• Toast shares were trading at $28.58, below the consensus target, while insiders recently sold shares and institutional investors still own 82.91% of the company.

Toast (NYSE:TOST - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other research analysts have also commented on TOST. Barclays started coverage on shares of Toast in a research note on Tuesday. They issued an "overweight" rating and a $35.00 price objective on the stock. Loop Capital initiated coverage on shares of Toast in a research note on Tuesday, March 31st. They set a "hold" rating and a $26.00 target price for the company. Morgan Stanley set a $45.00 price target on Toast in a report on Friday, May 8th. Rothschild & Co Redburn reaffirmed a "neutral" rating and set a $35.00 price objective on shares of Toast in a research note on Tuesday, May 12th. Finally, Truist Financial reduced their price objective on Toast from $36.00 to $30.00 and set a "buy" rating for the company in a research note on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $37.41.

Toast Price Performance

TOST stock opened at $28.58 on Tuesday. The company has a fifty day moving average price of $25.68 and a 200 day moving average price of $28.52. Toast has a 12 month low of $22.26 and a 12 month high of $49.66. The company has a market cap of $14.75 billion, a price-to-earnings ratio of 43.97 and a beta of 1.74.

Insider Buying and Selling

In related news, CRO Jonathan Vassil sold 6,647 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total transaction of $191,765.95. Following the completion of the sale, the executive owned 69,966 shares of the company's stock, valued at approximately $2,018,519.10. This represents a 8.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Elena Gomez sold 11,605 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total transaction of $334,804.25. Following the completion of the transaction, the chief financial officer owned 185,150 shares in the company, valued at $5,341,577.50. The trade was a 5.90% 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. Insiders have sold 156,115 shares of company stock worth $4,184,238 over the last 90 days. Company insiders own 10.03% of the company's stock.

Hedge Funds Weigh In On Toast

Hedge funds and other institutional investors have recently made changes to their positions in the business. Jennison Associates LLC increased its holdings in Toast by 1.0% in the 4th quarter. Jennison Associates LLC now owns 15,157,955 shares of the company's stock valued at $538,259,000 after purchasing an additional 157,394 shares in the last quarter. Morgan Stanley grew its stake in shares of Toast by 6.7% in the fourth quarter. Morgan Stanley now owns 10,372,626 shares of the company's stock valued at $368,332,000 after buying an additional 653,487 shares in the last quarter. State Street Corp raised its holdings in shares of Toast by 3.0% during the 4th quarter. State Street Corp now owns 9,820,594 shares of the company's stock valued at $348,729,000 after buying an additional 282,282 shares during the period. XN LP raised its holdings in shares of Toast by 50.8% during the 4th quarter. XN LP now owns 8,988,386 shares of the company's stock valued at $319,178,000 after buying an additional 3,029,856 shares during the period. Finally, Geode Capital Management LLC lifted its position in Toast by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 8,675,056 shares of the company's stock worth $307,214,000 after acquiring an additional 169,230 shares in the last quarter. Institutional investors and hedge funds 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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