Toast (NYSE:TOST) Stock Price Expected to Rise, DA Davidson Analyst Says

Key Points

• DA Davidson raised Toast’s price target to $34 from $30 but maintained a “neutral” rating, implying 3.86% downside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $38.77.
• Toast shares rose 2.6% to $35.37, while the company reported quarterly revenue of $1.91 billion, ahead of expectations and up 23.1% year over year. However, adjusted earnings of $0.26 per share missed consensus estimates of $0.32.
• Toast insiders sold 333,373 shares worth approximately $10.4 million over the past three months, though the transactions were conducted under pre-arranged Rule 10b5-1 trading plans.

Toast (NYSE:TOST - Get Free Report) had its target price lifted by DA Davidson from $30.00 to $34.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "neutral" rating on the stock. DA Davidson's price objective points to a potential downside of 3.86% from the stock's previous close.

TOST has been the topic of several other research reports. Royal Bank Of Canada upped their price objective on Toast from $31.00 to $36.00 and gave the company a "sector perform" rating in a research note on Wednesday, August 5th. UBS Group boosted their target price on Toast from $34.00 to $39.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Toast in a research report on Wednesday, May 20th. Evercore reiterated an "outperform" rating on shares of Toast in a research note on Wednesday, August 5th. Finally, Sanford C. Bernstein boosted their price objective on Toast from $39.00 to $45.00 and gave the company an "outperform" rating in a research note on Thursday. Seventeen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $38.77.

Toast Stock Up 2.6%

NYSE TOST traded up $0.89 during trading hours on Monday, reaching $35.37. 5,892,929 shares of the company were exchanged, compared to its average volume of 11,789,398. The stock has a market capitalization of $18.18 billion, a P/E ratio of 45.35 and a beta of 1.72. Toast has a 1 year low of $22.26 and a 1 year high of $45.64. The business's 50 day simple moving average is $28.44 and its 200-day simple moving average is $27.86.

Toast (NYSE:TOST - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.06). Toast had a net margin of 7.14% and a return on equity of 23.90%. The company had revenue of $1.91 billion during the quarter, compared to analysts' expectations of $1.87 billion. During the same quarter in the previous year, the firm earned $0.13 earnings per share. The firm's revenue was up 23.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Toast will post 0.99 earnings per share for the current year.

Insider Buying and Selling

In other Toast news, General Counsel Brian R. Elworthy sold 108,000 shares of the firm's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.89, for a total value of $2,796,120.00. Following the completion of the transaction, the general counsel directly owned 189,642 shares of the company's stock, valued at $4,909,831.38. This trade represents a 36.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Elena Gomez sold 16,176 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $35.29, for a total transaction of $570,851.04. Following the transaction, the chief financial officer owned 168,974 shares of the company's stock, valued at $5,963,092.46. This trade represents a 8.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 333,373 shares of company stock valued at $10,388,372 in the last three months. Insiders own 10.03% of the company's stock.

Institutional Investors Weigh In On Toast

A number of institutional investors and hedge funds have recently made changes to their positions in TOST. Bayban bought a new position in Toast in the 4th quarter worth about $25,000. SHP Wealth Management purchased a new position in shares of Toast during the fourth quarter worth about $29,000. Strive Financial Group LLC bought a new position in shares of Toast in the fourth quarter worth approximately $29,000. Silicon Valley Capital Partners purchased a new stake in Toast in the fourth quarter valued at approximately $36,000. Finally, Quadrant Capital Group LLC raised its stake in Toast by 2,083.3% in the fourth quarter. Quadrant Capital Group LLC now owns 1,048 shares of the company's stock valued at $37,000 after purchasing an additional 1,000 shares in the last quarter. Hedge funds and other institutional investors 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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