Is Toast Inc [TOST] a good investment? Don’t be fooled by its recent momentum

The price of Toast Inc (NYSE:TOST) shares last traded on Wall Street fell -2.95% to $15.77.

Based on available information, 22 analysts follow Toast Inc (NYSE:TOST). The consensus rating among analysts is ‘Overweight’. As we calculate the median target price by taking the range between a high of $31.00 and a low of $16.00, we find $25.00. Given the previous closing price of $16.25, this indicates a potential upside of 53.85 percent. TOST stock price is now -19.07% away from the 50-day moving average and -22.22% away from the 200-day moving average. The market capitalization of the company currently stands at $7.90B.

Among analysts, 12 rate the stock a hold while 10 rate it a buy. Brokers who have rated the stock have averaged $24.12 as their price target over the next twelve months.

In other news, Comparato Christopher P, Chief Executive Officer sold 58,000 shares of the company’s stock on Oct 16. The stock was sold for $1,031,994 at an average price of $17.79. Upon completion of the transaction, the Chief Executive Officer now directly owns 159,029 shares in the company, valued at $2.51 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Oct 16, Principal Accounting Officer Matlock James Michael sold 1,089 shares of the business’s stock. A total of $19,359 was realized by selling the stock at an average price of $17.78. This leaves the insider owning 29,973 shares of the company worth $0.47 million. Insiders disposed of 23,389,413 shares of company stock worth roughly $368.85 million over the past 1 year. A total of 38.31% of the company’s stock is owned by insiders.

There have been several recent changes in the stakes of large investors in TOST stock. A new stake in Toast Inc shares was purchased by WHALE ROCK CAPITAL MANAGEMENT LLC during the first quarter worth $77,945,000. DRAGONEER INVESTMENT GROUP, LLC invested $71,611,000 in shares of TOST during the first quarter. In the first quarter, FRED ALGER MANAGEMENT, LLC acquired a new stake in Toast Inc valued at approximately $54,652,000. EVENTIDE ASSET MANAGEMENT, LLC acquired a new stake in TOST for approximately $25,293,000. RIVERBRIDGE PARTNERS LLC purchased a new stake in TOST valued at around $20,752,000 in the second quarter. In total, there are 494 active investors with 61.02% ownership of the company’s stock.

A candlestick chart of Toast Inc (NYSE: TOST) showed a price of $16.40 on Friday morning. During the past 12 months, Toast Inc has had a low of $15.77 and a high of $27.00. As of last week, the company has a debt-to-equity ratio of 0.03, a current ratio of 2.40, and a quick ratio of 2.20. The fifty day moving average price for TOST is $19.35 and a two-hundred day moving average price translates $20.26 for the stock.

The latest earnings results from Toast Inc (NYSE: TOST) was released for Jun, 2023. According to the Software – Infrastructure Company, earnings per share came in at -$0.19, missing analysts’ expectations of -$0.14 by -0.05. This compares to -$0.11 EPS in the same period last year. The net profit margin was -11.33% and return on equity was -33.74% for TOST. The company reported revenue of $978.0 million for the quarter, compared to $675.0 million a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 44.89 percent. For the current quarter, analysts expect TOST to generate $1.03B in revenue.

Toast Inc(TOST) Company Profile

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States and Ireland. The company offers Toast POS, a software module that integrates payment processing with point of sale functionality; Toast Invoicing that allows restaurants to send invoices and collect payment; Toast Mobile Order & Pay, which allows guests to scan a QR code to browse the menu, order, and pay from mobile; Kitchen Display System software that connects the house with the kitchen staff; and Multi-Location Management, a tool to manage operations and configure menus across multiple locations and channels. It also provides Toast Flex, an hardware for on-counter order and pay; Toast Go, an integrated handheld POS device; Toast Tap, a card reader for accepting EMV-contactless payments; Toast Online Ordering & Toast TakeOut, an online ordering and consumer Toast TakeOut application; First-Party Delivery, a toast delivery service; POS integration for restaurants using third-party delivery services to order intake and eliminate the need for extra third-party tablets; and loyalty, email marketing, and Toast Gift Cards services. In addition, the company offers Payroll & Team Management solution for employee performance and satisfaction; Employee management tools, such as Sling for Toast that provide streamlined scheduling and team communication; Toast Pay Card & PayOut, which offers eligible workers instant access to a portion of their tips and wages; and Tips Manager solution that automates the tip-pooling process. Further, it provides xtraCHEF a suite of back-office tools, such as accounts payable automation, inventory management, ingredient price tracker, and recipe costing for restaurants; Payment Processing, capital funding, and purchase financing solutions; insights and reporting on real-time sales, menu, and labor data; Toast Partner Connect, a portal that allows customers to discover, select, and connect their restaurant to partners; and a suite of bi-directional application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.