Toast (NYSE:TOST) Price Target Raised to $40.00

Toast (NYSE:TOST) had its price target raised by BMO Capital Markets from $35.00 to $40.00 in a research note published on Wednesday, Marketbeat Ratings reports. BMO Capital Markets currently has an outperform rating on the stock.

Other research analysts have also recently issued reports about the company. DA Davidson upped their price target on Toast from $28.00 to $30.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. Piper Sandler lifted their price objective on Toast from $32.00 to $39.00 and gave the company an “overweight” rating in a research note on Wednesday. UBS Group decreased their price target on shares of Toast from $40.00 to $34.00 and set a “buy” rating for the company in a research note on Friday, May 8th. Robert W. Baird boosted their target price on shares of Toast from $30.00 to $33.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 8th. Finally, Rothschild & Co Redburn reiterated a “neutral” rating and issued a $35.00 price objective on shares of Toast in a report on Tuesday, May 12th. Seventeen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $38.62.

Toast Price Performance

Shares of Toast stock opened at $34.47 on Wednesday. Toast has a 1-year low of $22.26 and a 1-year high of $46.11. The stock has a market cap of $17.72 billion, a P/E ratio of 44.19 and a beta of 1.72. The stock’s 50 day simple moving average is $28.44 and its 200-day simple moving average is $27.90.

Toast (NYSE:TOST) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06). The firm had revenue of $1.91 billion during the quarter, compared to analysts’ expectations of $1.87 billion. Toast had a net margin of 7.14% and a return on equity of 23.90%. The company’s revenue for the quarter was up 23.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.13 EPS. As a group, research analysts expect that Toast will post 0.98 EPS for the current fiscal year.

Insider Buying and Selling at Toast

In related news, CEO Aman Narang sold 13,510 shares of the business’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $35.02, for a total value of $473,120.20. Following the completion of the sale, the chief executive officer directly owned 161,948 shares in the company, valued at approximately $5,671,418.96. The trade was a 7.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $263,862.10. Following the completion of the transaction, the president owned 931,449 shares in the company, valued at approximately $26,872,303.65. This trade represents a 0.97% 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. Over the last quarter, insiders sold 333,373 shares of company stock valued at $10,388,372. Corporate insiders own 10.03% of the company’s stock.

Institutional Trading of Toast

Several large investors have recently added to or reduced their stakes in the stock. Bayban acquired a new stake in Toast in the fourth quarter valued at approximately $25,000. SHP Wealth Management acquired a new position in shares of Toast in the fourth quarter worth about $29,000. Strive Financial Group LLC purchased a new stake in Toast during the 4th quarter worth approximately $29,000. Silicon Valley Capital Partners purchased a new position in shares of Toast during the 4th quarter valued at approximately $36,000. Finally, Quadrant Capital Group LLC grew its holdings in Toast by 2,083.3% during the 4th quarter. Quadrant Capital Group LLC now owns 1,048 shares of the company’s stock worth $37,000 after acquiring an additional 1,000 shares in the last quarter. 82.91% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Toast

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 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.