ABN Amro Invests $6.09 Million in Toast, Inc. Amid Market Dynamics

ABN Amro Investment Solutions has established a significant new position in Toast, Inc. (NYSE: TOST), acquiring approximately $6.09 million worth of shares during the second quarter of 2023. According to the latest filing with the Securities and Exchange Commission (SEC), the investment firm purchased 137,428 shares of Toast, which is a cloud-based digital technology platform catering to the restaurant industry.

This investment reflects a broader trend among institutional investors who have been actively adjusting their positions in Toast. Notably, Candriam S.C.A. increased its holdings in the company by an impressive 385% during the same period, acquiring an additional 431,172 shares to bring its total to 543,155 shares, valued at approximately $24.06 million. Similarly, Calamos Advisors LLC lifted its stake by 41.3%, now holding 33,720 shares worth around $1.49 million.

Other notable investments include Geode Capital Management LLC, which expanded its position by 2.8%, now owning 7,902,519 shares valued at about $348.91 million, and PNC Financial Services Group Inc., increasing its shares by 39.1% to 16,665 shares, worth approximately $738,000. Currently, institutional investors and hedge funds control 82.91% of Toast’s stock.

In recent insider trading activity, Toast’s Chief Financial Officer, Elena Gomez, sold 2,021 shares on November 4, 2023, at an average price of $35.54, totaling $71,826.34. Following this transaction, she retained 151,463 shares valued at about $5.38 million, reflecting a 1.32% reduction in her position. Similarly, President Stephen Fredette sold 1,732 shares on the same day, also at an average price of $35.54, resulting in a total of $61,555.28. He now holds 900,264 shares, valued at approximately $31.99 million. Over the last quarter, insiders have sold a total of 62,259 shares, valued at around $2.30 million.

On the market side, Toast’s stock opened at $36.71 on November 4, 2023, reflecting a 4.3% decrease. The company’s stock has fluctuated between a low of $28.12 and a high of $49.66 over the past year. With a market capitalization of $18.91 billion, Toast currently holds a price-to-earnings ratio of 85.37 and a beta of 1.94.

In its latest earnings report, Toast announced an earnings per share (EPS) of $0.16 for the quarter, falling short of analysts’ expectations of $0.24. The company recorded revenue of $1.63 billion, surpassing projections of $1.58 billion. Compared to the same quarter last year, Toast’s revenue increased by 25.1%. Analysts predict that Toast will report an EPS of $0.39 for the current fiscal year.

Analysts have varied perspectives on Toast’s stock performance. Deutsche Bank Aktiengesellschaft initiated coverage with a “buy” rating and a target price of $54.00. In contrast, DA Davidson set a target of $42.00, while Goldman Sachs Group lowered its target from $51.00 to $41.00, maintaining a “neutral” rating. Overall, Toast has received two “strong buy” ratings, twelve “buy” ratings, and ten “hold” ratings, resulting in a consensus rating of “moderate buy” and a target price of $45.45.

Toast, Inc. operates a comprehensive digital technology platform, offering a range of software and hardware products aimed at enhancing restaurant operations. Their services include point-of-sale systems, mobile ordering, and multi-location management, operating primarily in the United States, Ireland, and India.

Investors are keenly watching Toast’s performance as it navigates through market challenges and growth opportunities in the competitive landscape of restaurant technology.