Toast (NYSE:TOST) Receives "Neutral" Rating from DA Davidson

Key Points

• DA Davidson reiterated a Neutral rating on Toast with a $33 price target (about 16.7% upside), while analyst opinions vary and the MarketBeat consensus remains a Moderate Buy with a $39.48 consensus price target.
• Toast missed Q4 EPS expectations, reporting $0.16 vs. a $0.24 consensus while revenue rose 22% year‑over‑year to $1.63B; the stock recently traded at $28.28 with a $14.57B market cap and a 52‑week range of $24.35–$49.66.
• Insiders, including the CEO and general counsel, sold roughly 39,783 shares (~$1.04M) last quarter, leaving insiders with 12.14% ownership, while institutional investors own about 82.91% of the stock.

Toast (NYSE:TOST - Get Free Report)'s stock had its "neutral" rating reiterated by DA Davidson in a note issued to investors on Tuesday,Benzinga reports. They currently have a $33.00 target price on the stock. DA Davidson's price target points to a potential upside of 16.69% from the stock's previous close.

Several other analysts have also recently weighed in on the company. Morgan Stanley set a $51.00 price objective on Toast in a report on Friday, February 13th. Wells Fargo & Company lowered their target price on Toast from $47.00 to $36.00 and set an "overweight" rating for the company in a research note on Friday, February 13th. Loop Capital began coverage on Toast in a research note on Tuesday, March 31st. They set a "hold" rating and a $26.00 target price for the company. Stephens set a $42.00 target price on Toast in a research note on Friday, January 16th. Finally, Truist Financial set a $36.00 target price on Toast in a research note on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Toast currently has a consensus rating of "Moderate Buy" and a consensus price target of $39.48.

Toast Stock Performance

NYSE:TOST traded down $1.13 on Tuesday, hitting $28.28. 8,943,433 shares of the stock were exchanged, compared to its average volume of 10,966,969. The stock has a market capitalization of $14.57 billion, a price-to-earnings ratio of 52.39 and a beta of 1.81. Toast has a 52 week low of $24.35 and a 52 week high of $49.66. The company's 50-day moving average price is $27.64 and its 200 day moving average price is $31.95.

Toast (NYSE:TOST - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.08). The firm had revenue of $1.63 billion for the quarter, compared to the consensus estimate 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 period in the prior year, the firm posted $0.05 earnings per share. As a group, equities research analysts predict that Toast will post 0.81 earnings per share for the current year.

Toast declared that its board has authorized a share repurchase program on Thursday, February 12th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other Toast news, General Counsel Brian R. Elworthy sold 3,664 shares of the company's stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $26.19, for a total transaction of $95,960.16. Following the completion of the transaction, the general counsel owned 243,642 shares of the company's stock, valued at $6,380,983.98. This represents a 1.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Aman Narang sold 13,463 shares of the company's stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $26.19, for a total value of $352,595.97. Following the transaction, the chief executive officer directly owned 54,013 shares of the company's stock, valued at approximately $1,414,600.47. This trade represents a 19.95% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 39,783 shares of company stock worth $1,041,917. 12.14% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Toast

Several hedge funds and other institutional investors have recently made changes to their positions in TOST. NewEdge Advisors LLC grew its stake in shares of Toast by 1,555.5% in the first quarter. NewEdge Advisors LLC now owns 17,432 shares of the company's stock valued at $578,000 after buying an additional 16,379 shares in the last quarter. Cerity Partners LLC grew its stake in shares of Toast by 24.0% in the second quarter. Cerity Partners LLC now owns 81,574 shares of the company's stock valued at $3,613,000 after buying an additional 15,774 shares in the last quarter. State Street Corp grew its stake in shares of Toast by 2.7% in the second quarter. State Street Corp now owns 9,212,889 shares of the company's stock valued at $408,039,000 after buying an additional 245,276 shares in the last quarter. Frontier Capital Management Co. LLC bought a new position in shares of Toast in the second quarter valued at $4,479,000. Finally, Sei Investments Co. grew its stake in shares of Toast by 24.6% in the second quarter. Sei Investments Co. now owns 1,030,007 shares of the company's stock valued at $45,619,000 after buying an additional 203,404 shares in the last quarter. 82.91% of the stock is owned by institutional investors.

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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