Toast (NYSE:TOST) Posts Earnings Results, Misses Estimates By $0.06 EPS

Toast (NYSE:TOST) posted its earnings results on Tuesday. The company reported $0.26 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06), FiscalAI reports. Toast had a return on equity of 20.86% and a net margin of 6.39%.The firm had revenue of $1.91 billion during the quarter, compared to analysts’ expectations of $1.87 billion.

Toast Stock Up 3.6%

Shares of TOST traded up $1.18 on Tuesday, reaching $33.97. The stock had a trading volume of 16,830,687 shares, compared to its average volume of 11,797,711. The firm has a 50-day moving average of $27.66 and a 200 day moving average of $27.84. Toast has a twelve month low of $22.26 and a twelve month high of $49.66. The firm has a market capitalization of $17.53 billion, a PE ratio of 52.26 and a beta of 1.72.

Insider Transactions at Toast

In other Toast news, CRO Jonathan Vassil sold 3,150 shares of the business’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $30.03, for a total transaction of $94,594.50. Following the transaction, the executive owned 69,966 shares in the company, valued at $2,101,078.98. The trade was a 4.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Stephen Fredette sold 9,146 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total value of $263,862.10. Following the completion of the sale, the president directly owned 931,449 shares of the company’s stock, valued at approximately $26,872,303.65. This represents a 0.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 159,265 shares of company stock valued at $4,278,832 in the last quarter. Insiders own 10.03% of the company’s stock.

Institutional Investors Weigh In On Toast

Hedge funds have recently made changes to their positions in the company. Morgan Stanley boosted its holdings in shares of Toast by 6.7% during the 4th quarter. Morgan Stanley now owns 10,372,626 shares of the company’s stock worth $368,332,000 after buying an additional 653,487 shares during the period. State Street Corp raised its position in Toast by 3.0% in the 4th quarter. State Street Corp now owns 9,820,594 shares of the company’s stock worth $348,729,000 after purchasing an additional 282,282 shares during the last quarter. XN LP lifted its position in Toast by 50.8% during the 4th 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. ValueAct Holdings L.P. grew its holdings in Toast by 135.9% during the 4th quarter. ValueAct Holdings L.P. now owns 8,015,277 shares of the company’s stock worth $284,622,000 after acquiring an additional 4,618,077 shares during the period. Finally, Marshall Wace LLP raised its position in shares of Toast by 3.9% in the 4th quarter. Marshall Wace LLP now owns 5,292,568 shares of the company’s stock valued at $187,939,000 after acquiring an additional 198,783 shares during the period. Hedge funds and other institutional investors own 82.91% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. DA Davidson boosted their price target on shares of Toast from $28.00 to $30.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Citigroup decreased their target price on Toast from $42.00 to $36.00 and set a “buy” rating for the company in a report on Friday, May 8th. Robert W. Baird raised their target price on Toast from $30.00 to $33.00 and gave the company a “neutral” rating in a research report on Wednesday, July 8th. Piper Sandler initiated coverage on shares of Toast in a research note on Wednesday, June 10th. They issued an “overweight” rating and a $32.00 price target on the stock. Finally, Mizuho dropped their target price on shares of Toast from $45.00 to $38.00 and set an “outperform” rating for the company in a report on Tuesday, May 12th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target 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.