Toast stock hits 52-week high at $31.57 amid robust growth

Published 06/11/2024, 16:22
Toast stock hits 52-week high at $31.57 amid robust growth

Toast Inc. (NYSE:TOST), a cloud-based restaurant software company, has reached a new 52-week high, with its stock price soaring to $31.57. This milestone reflects a significant uptrend in the company's market performance, marking an impressive 80.58% increase over the past year. Investors have shown increased confidence in Toast's business model and growth prospects, as the company continues to expand its offerings and customer base in the competitive restaurant technology industry. The 52-week high serves as a testament to Toast's resilience and adaptability in a market that has faced numerous challenges.

In other recent news, Toast Inc. has demonstrated robust growth, exceeding expectations with key financial metrics. The company reported a 29% year-over-year increase in recurring gross profit, adding a record 8,000 net new locations. This led to an adjusted EBITDA of $92 million, marking a healthy 27% margin on these profit streams. Canaccord Genuity maintained a positive outlook on Toast Inc., reiterating a Buy rating and a $28.00 price target. Similarly, DA Davidson raised its price target from $32 to $35, while Baird increased theirs from $28 to $30. These adjustments reflect confidence in Toast's performance and future prospects. Despite a 3% decline in GPV per location in Q2, the company's core U.S. SMB and mid-market business contributed significantly to the net additions. Moving forward, Toast plans to increase investment in key business areas in the second half of the year, maintaining a breakeven on a GAAP basis for the remainder of the year. These developments provide investors with a snapshot of Toast's recent performance and future expectations.

InvestingPro Insights

Toast Inc.'s recent achievement of a new 52-week high is further supported by InvestingPro data, which reveals a robust YTD price total return of 68.73% as of the latest available data. This aligns with the article's mention of the stock's impressive 80.58% increase over the past year. The company's market capitalization stands at $17.32 billion, reflecting its significant presence in the restaurant technology sector.

InvestingPro Tips highlight that Toast is "trading near its 52-week high" and has shown a "strong return over the last three months," with data indicating a 27.37% price total return in that period. These insights corroborate the article's emphasis on Toast's upward trajectory and investor confidence.

Additionally, an InvestingPro Tip notes that Toast's "net income is expected to grow this year," suggesting potential improvements in profitability that could further fuel investor optimism. This expectation of growth aligns with the company's expanding offerings and customer base mentioned in the article.

For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Toast Inc., providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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