Toast (NYSE:TOST) Releases Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Toast reported quarterly EPS of $0.26, missing analyst expectations of $0.32 by $0.06, while revenue of $1.91 billion exceeded the $1.87 billion consensus estimate.
• Toast shares rose to $33.97, with a market capitalization of $17.53 billion; the stock remains below its one-year high of $49.66.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $37.27, while institutional investors own 82.91% of the company.

Toast (NYSE:TOST - Get Free Report) announced its earnings results on Tuesday. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.32 by ($0.06), FiscalAI reports. The business had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.87 billion. Toast had a net margin of 6.39% and a return on equity of 20.86%.

Toast Stock Performance

TOST traded up $1.18 during trading on Tuesday, reaching $33.97. The stock had a trading volume of 16,205,811 shares, compared to its average volume of 11,759,724. The business has a 50-day moving average of $27.66 and a 200-day moving average of $27.84. Toast has a one year low of $22.26 and a one year high of $49.66. The stock has a market cap of $17.53 billion, a PE ratio of 52.26 and a beta of 1.72.

Insider Activity at Toast

In related news, President Stephen Fredette sold 9,146 shares of the stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total transaction of $263,862.10. Following the completion of the sale, the president directly owned 931,449 shares in the company, valued at $26,872,303.65. This represents a 0.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Aman Narang sold 14,365 shares of the stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total transaction of $414,430.25. Following the sale, the chief executive officer directly owned 70,451 shares of the company's stock, valued at $2,032,511.35. The trade was a 16.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 159,265 shares of company stock worth $4,278,832 in the last quarter. 10.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Toast

Several institutional investors and hedge funds have recently added to or reduced their stakes in TOST. Morgan Stanley grew its holdings in shares of Toast by 6.7% during 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 during the last quarter. State Street Corp boosted its position in shares of Toast by 3.0% during the fourth 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 last quarter. XN LP boosted its holdings in Toast by 50.8% in the fourth quarter. XN LP now owns 8,988,386 shares of the company's stock worth $319,178,000 after purchasing an additional 3,029,856 shares during the last quarter. ValueAct Holdings L.P. lifted its holdings in Toast by 135.9% in the fourth quarter. ValueAct Holdings L.P. now owns 8,015,277 shares of the company's stock valued at $284,622,000 after acquiring an additional 4,618,077 shares during the period. Finally, Marshall Wace LLP boosted its holdings in shares of Toast by 3.9% in the fourth quarter. Marshall Wace LLP now owns 5,292,568 shares of the company's stock worth $187,939,000 after buying an additional 198,783 shares during the last quarter. Hedge funds and other institutional investors own 82.91% of the company's stock.

Analysts Set New Price Targets

TOST has been the subject of a number of research analyst reports. Rothschild & Co Redburn restated a "neutral" rating and set a $35.00 price objective on shares of Toast in a report on Tuesday, May 12th. Oppenheimer reissued an "outperform" rating and set a $36.00 target price on shares of Toast in a research report on Friday, May 8th. Piper Sandler began coverage on shares of Toast in a report on Wednesday, June 10th. They issued an "overweight" rating and a $32.00 price target on the stock. Citigroup dropped their price objective on Toast from $42.00 to $36.00 and set a "buy" rating on the stock in a research note on Friday, May 8th. Finally, DA Davidson boosted their target price on shares of Toast from $28.00 to $30.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $37.27.

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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