Toast (NYSE:TOST) Hits New 1-Year Low – Should You Sell?

Toast, Inc. (NYSE:TOST) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $25.40 and last traded at $25.5070, with a volume of 2715827 shares changing hands. The stock had previously closed at $27.07.

Analyst Ratings Changes

A number of equities analysts recently issued reports on TOST shares. Wells Fargo & Company decreased their target price on Toast from $47.00 to $36.00 and set an “overweight” rating on the stock in a report on Friday, February 13th. Morgan Stanley set a $51.00 price target on Toast in a research note on Friday, February 13th. BNP Paribas Exane upgraded Toast from a “hold” rating to an “outperform” rating and set a $40.00 price objective on the stock in a report on Monday, December 1st. JPMorgan Chase & Co. upgraded shares of Toast from a “neutral” rating to an “overweight” rating and set a $43.00 target price for the company in a report on Thursday, December 4th. Finally, Evercore upgraded shares of Toast from an “in-line” rating to an “outperform” rating and set a $40.00 price target on the stock in a report on Tuesday, January 20th. Seventeen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Toast has an average rating of “Moderate Buy” and an average target price of $40.46.

Toast Stock Up 4.9%

The stock has a market capitalization of $14.06 billion, a PE ratio of 46.49 and a beta of 1.93. The stock’s 50-day moving average is $32.23 and its 200 day moving average is $36.07.

Toast (NYSE:TOST) last issued its earnings results 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 5.56% and a return on equity of 18.14%. The company had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.62 billion. During the same period last year, the business earned $0.05 EPS. The company’s quarterly revenue was up 22.0% on a year-over-year basis. As a group, equities research analysts forecast that Toast, Inc. will post 0.39 EPS for the current year.

Toast announced that its board has authorized a share buyback program on Thursday, February 12th that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, CRO Jonathan Vassil sold 1,454 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $30.34, for a total value of $44,114.36. Following the transaction, the executive owned 139,893 shares in the company, valued at approximately $4,244,353.62. This represents a 1.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Aman Narang sold 1,648 shares of the business’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $30.34, for a total transaction of $50,000.32. Following the completion of the sale, the chief executive officer directly owned 340,723 shares of the company’s stock, valued at $10,337,535.82. This represents a 0.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 100,856 shares of company stock worth $3,540,449 in the last quarter. Corporate insiders own 12.14% of the company’s stock.

Institutional Trading of Toast

A number of institutional investors and hedge funds have recently modified their holdings of the company. Cim LLC raised its holdings in Toast by 0.7% in the 2nd quarter. Cim LLC now owns 38,302 shares of the company’s stock worth $1,696,000 after acquiring an additional 273 shares during the period. Wynn Capital LLC boosted its holdings in Toast by 2.1% during the fourth quarter. Wynn Capital LLC now owns 13,755 shares of the company’s stock valued at $488,000 after acquiring an additional 280 shares during the period. Bridgewater Advisors Inc. grew its position in shares of Toast by 2.3% in the third quarter. Bridgewater Advisors Inc. now owns 13,107 shares of the company’s stock valued at $472,000 after purchasing an additional 294 shares during the last quarter. Trinity Financial Advisors LLC grew its position in shares of Toast by 2.5% in the third quarter. Trinity Financial Advisors LLC now owns 12,094 shares of the company’s stock valued at $442,000 after purchasing an additional 296 shares during the last quarter. Finally, Parkside Financial Bank & Trust increased its stake in shares of Toast by 4.6% in the second quarter. Parkside Financial Bank & Trust now owns 6,921 shares of the company’s stock worth $307,000 after purchasing an additional 306 shares during the period. 82.91% of the stock is currently owned by institutional investors and hedge funds.

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.