Toast (NYSE:TOST) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen lowered shares of Toast (NYSE:TOST) from a buy rating to a hold rating in a report issued on Saturday morning.

A number of other analysts have also issued reports on the company. Jefferies Financial Group set a $35.00 price objective on Toast in a research note on Friday, February 13th. Loop Capital assumed coverage on Toast in a research note on Tuesday, March 31st. They set a “hold” rating and a $26.00 price objective on the stock. Sanford C. Bernstein set a $39.00 price objective on Toast in a research note on Monday, February 16th. BMO Capital Markets assumed coverage on Toast in a research note on Tuesday, April 21st. They set an “outperform” rating and a $35.00 price objective on the stock. Finally, UBS Group decreased their price objective on Toast from $40.00 to $34.00 and set a “buy” rating on the stock in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $38.71.

Toast Price Performance

Shares of NYSE TOST opened at $25.03 on Friday. Toast has a one year low of $24.04 and a one year high of $49.66. The business’s fifty day moving average price is $27.82 and its 200-day moving average price is $31.77. The stock has a market capitalization of $12.90 billion, a PE ratio of 38.50 and a beta of 1.81.

Toast (NYSE:TOST) last released its quarterly earnings data on Thursday, February 12th. The company reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.08). Toast had a net margin of 6.39% and a return on equity of 20.87%. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.62 billion. During the same quarter in the previous year, the firm posted $0.05 earnings per share. The business’s revenue for the quarter was up 22.0% compared to the same quarter last year. As a group, equities analysts expect that Toast will post 0.81 EPS for the current fiscal year.

Toast declared that its board has approved a stock buyback program on Thursday, February 12th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Toast

In related news, CEO Aman Narang sold 13,463 shares of the business’s stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.19, for a total transaction of $352,595.97. Following the completion of the transaction, the chief executive officer directly owned 54,013 shares in the company, valued at $1,414,600.47. The trade was a 19.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, President Stephen Fredette sold 7,289 shares of the business’s stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.19, for a total value of $190,898.91. Following the transaction, the president owned 920,985 shares of the company’s stock, valued at approximately $24,120,597.15. The trade was a 0.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 39,783 shares of company stock valued at $1,041,917 over the last 90 days. Insiders own 12.14% of the company’s stock.

Hedge Funds Weigh In On Toast

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bayban purchased a new position in Toast during the fourth quarter worth about $25,000. Quent Capital LLC bought a new stake in Toast during the third quarter worth about $27,000. SHP Wealth Management bought a new stake in Toast during the fourth quarter worth about $29,000. Strive Financial Group LLC bought a new stake in Toast during the fourth quarter worth about $29,000. Finally, Central Pacific Bank Trust Division lifted its stake in Toast by 123.5% during the fourth quarter. Central Pacific Bank Trust Division now owns 943 shares of the company’s stock worth $33,000 after purchasing an additional 521 shares during the last quarter. 82.91% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Toast

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Toast raised its full-year profitability outlook, guiding to $790 million to $810 million in adjusted EBITDA for FY2026, supported by expected 21% to 23% recurring gross profit growth. Article Title
• Positive Sentiment: Revenue continued to grow at a strong pace, with Q1 sales of about $1.63 billion and year-over-year growth around 22%, showing the business is still expanding quickly. Article Title
• Neutral Sentiment: Analysts were mixed on the quarter: some reports said Toast beat earnings expectations, while others said adjusted EPS came in below estimates depending on the metric used, which may be adding to the confusion around the stock. Article Title
• Neutral Sentiment: Toast’s Q1 earnings call transcript and related coverage suggest investors are still parsing management’s commentary for signs of margin durability and growth momentum. Article Title
• Negative Sentiment: The stock is under pressure because the market appears focused more on any earnings disappointment and valuation concerns than on the improved guidance. Article Title
• Negative Sentiment: Citigroup cut its price target on Toast to $36 from $42, signaling a more cautious near-term outlook even while maintaining a buy rating. Article Title

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.