Primecap Management Co. CA Takes $2.94 Million Position in Toast, Inc. $TOST

Primecap Management Co. CA purchased a new position in Toast, Inc. (NYSE:TOST) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 80,500 shares of the company’s stock, valued at approximately $2,939,000.

Several other large investors also recently added to or reduced their stakes in the business. Jennison Associates LLC grew its position in Toast by 74.4% during the third quarter. Jennison Associates LLC now owns 15,000,561 shares of the company’s stock worth $547,670,000 after buying an additional 6,398,674 shares in the last quarter. Norges Bank bought a new stake in shares of Toast during the 2nd quarter valued at about $219,324,000. Marshall Wace LLP boosted its position in shares of Toast by 108.3% during the 2nd quarter. Marshall Wace LLP now owns 7,887,409 shares of the company’s stock valued at $349,333,000 after acquiring an additional 4,100,104 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Toast by 35.8% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 7,517,216 shares of the company’s stock worth $274,454,000 after purchasing an additional 1,982,566 shares in the last quarter. Finally, 1832 Asset Management L.P. increased its position in shares of Toast by 65.1% in the second quarter. 1832 Asset Management L.P. now owns 4,314,200 shares of the company’s stock worth $191,076,000 after purchasing an additional 1,701,900 shares during the last quarter. Institutional investors own 82.91% of the company’s stock.

Toast Stock Performance

Shares of TOST opened at $27.33 on Friday. The firm has a market cap of $14.32 billion, a price-to-earnings ratio of 50.60 and a beta of 1.93. Toast, Inc. has a fifty-two week low of $24.35 and a fifty-two week high of $49.66. The firm has a 50 day moving average price of $31.87 and a 200-day moving average price of $35.90.

Toast (NYSE:TOST) last released its earnings results on Thursday, February 12th. The company reported $0.16 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.08). The business had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.62 billion. Toast had a net margin of 5.56% and a return on equity of 18.14%. Toast’s revenue for the quarter was up 22.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.05 EPS. As a group, equities research analysts predict that Toast, Inc. will post 0.39 earnings per share for the current year.

Toast announced that its board has authorized a share repurchase plan on Thursday, February 12th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Activity

In other news, CFO Elena Gomez sold 6,672 shares of the business’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $34.38, for a total value of $229,383.36. Following the completion of the sale, the chief financial officer owned 162,153 shares of the company’s stock, valued at approximately $5,574,820.14. The trade was a 3.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, President Stephen Fredette sold 4,866 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $34.38, for a total value of $167,293.08. Following the sale, the president owned 910,606 shares of the company’s stock, valued at $31,306,634.28. This represents a 0.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 100,856 shares of company stock valued at $3,540,449. Company insiders own 12.14% of the company’s stock.

Wall Street Analyst Weigh In

TOST has been the subject of several research analyst reports. Stephens set a $42.00 target price on shares of Toast in a research report on Friday, January 16th. Canaccord Genuity Group set a $37.00 price target on shares of Toast in a report on Friday, February 13th. Truist Financial set a $36.00 price objective on shares of Toast in a research report on Wednesday. Wells Fargo & Company cut their target price on shares of Toast from $47.00 to $36.00 and set an “overweight” rating for the company in a research report on Friday, February 13th. Finally, Sanford C. Bernstein set a $39.00 target price on Toast in a research note on Monday, February 16th. Seventeen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, Toast has an average rating of “Moderate Buy” and a consensus price target of $40.46.

Toast 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.