Toast, Inc. (NYSE:TOST) Receives $37.15 Average PT from Brokerages

Toast, Inc. (NYSE:TOST) has been given a consensus rating of “Moderate Buy” by the twenty-six analysts that are currently covering the stock, Marketbeat reports. Nine investment analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $38.6154.

A number of research analysts have weighed in on the stock. Truist Financial lifted their price objective on shares of Toast from $30.00 to $33.00 and gave the company a “buy” rating in a report on Friday, July 24th. The Goldman Sachs Group upgraded Toast from a “neutral” rating to a “buy” rating and set a $36.00 target price on the stock in a research report on Thursday, July 9th. DA Davidson upped their price target on Toast from $28.00 to $30.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Sanford C. Bernstein upped their price target on Toast from $39.00 to $45.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, UBS Group raised their price objective on Toast from $34.00 to $39.00 and gave the company a “buy” rating in a report on Wednesday.

Insider Activity

In related news, President Stephen Fredette sold 9,146 shares of Toast stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total value of $263,862.10. Following the sale, the president owned 931,449 shares of the company’s stock, valued at approximately $26,872,303.65. This trade represents a 0.97% decrease in their position. The transaction was disclosed in a legal filing 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, CEO Aman Narang sold 124,542 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $35.29, for a total transaction of $4,395,087.18. Following the completion of the sale, the chief executive officer directly owned 175,458 shares of the company’s stock, valued at approximately $6,191,912.82. The trade was a 41.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 333,373 shares of company stock worth $10,388,372. Insiders own 10.03% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new stake in shares of Toast in the fourth quarter valued at approximately $202,808,000. ValueAct Holdings L.P. grew its holdings in shares of 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 purchasing an additional 4,618,077 shares during the period. XN LP grew its holdings in shares of Toast by 50.8% in the fourth quarter. XN LP now owns 8,988,386 shares of the company’s stock valued at $319,178,000 after purchasing an additional 3,029,856 shares during the period. Principal Financial Group Inc. increased its position in Toast by 36.0% during the first quarter. Principal Financial Group Inc. now owns 7,977,244 shares of the company’s stock worth $211,478,000 after purchasing an additional 2,111,009 shares during the last quarter. Finally, Worldquant Millennium Advisors LLC increased its position in Toast by 343.6% during the second quarter. Worldquant Millennium Advisors LLC now owns 1,792,209 shares of the company’s stock worth $79,377,000 after purchasing an additional 1,388,210 shares during the last quarter. Institutional investors and hedge funds own 82.91% of the company’s stock.

Toast News Summary

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Analysts raise price targets: BMO Capital Markets lifted its Toast price target to $40, while Needham and Keefe, Bruyette & Woods also expressed expectations for meaningful appreciation. These calls reinforce the bullish case following Toast’s growth and improving profitability. BMO Capital Markets Raises Toast Price Target Needham Forecasts Toast Price Appreciation Keefe Bruyette Woods Toast Outlook
• Positive Sentiment: AI and partnership momentum: A report highlights Toast’s AI initiatives and relationships with Google and hotel operators as potential catalysts for expanding its addressable market and strengthening the long-term growth story. Toast AI, Google, and Hotel Partnership Report
• Positive Sentiment: Options activity signals bullish positioning: High trading volume in Toast call options suggests some traders are positioning for additional upside, although options activity is a market signal rather than a change in fundamentals. Toast High Call Option Volume
• Neutral Sentiment: Mixed quarterly results: Toast exceeded revenue expectations, reporting $1.91 billion, up 23.1% year over year, but adjusted earnings per share fell short of consensus estimates. The revenue growth supports the bull case, while the earnings miss raises questions about execution and near-term margins. Toast Second Quarter Sales Report
• Negative Sentiment: Valuation concerns: A Seeking Alpha analysis recommended trimming the position, arguing that Toast’s valuation could become difficult to justify if growth or profitability slows. This is a risk after the stock’s recent rally. Toast Valuation Downgrade
• Negative Sentiment: Executives sell shares: CEO Aman Narang sold approximately $4.9 million of Toast stock, while the CFO and CRO also sold shares. Because the transactions were made under pre-arranged Rule 10b5-1 plans, they may reflect scheduled diversification rather than diminished confidence, but the volume can still weigh on sentiment.

Toast Trading Down 0.7%

Toast stock opened at $34.47 on Monday. Toast has a 12 month low of $22.26 and a 12 month high of $46.11. The stock’s 50 day simple moving average is $28.44 and its two-hundred day simple moving average is $27.90. The firm has a market cap of $17.72 billion, a PE ratio of 44.19 and a beta of 1.72.

Toast (NYSE:TOST) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.26 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06). Toast had a return on equity of 23.90% and a net margin of 7.14%.The firm had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same period in the previous year, the business earned $0.13 EPS. Toast’s revenue for the quarter was up 23.1% compared to the same quarter last year. On average, equities research analysts forecast that Toast will post 0.98 EPS for the current year.

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.