The software company will lay off 550 workers
Toast Inc (NYSE:TOST) stock is up 15.2% at $22.16 at last check, after the software company beat fourth-quarter expectations and announced it will lay off 550 workers. No fewer than seven brokerages hiked their price objectives in response, including Needham to $26 from $20.
Analysts are mostly skeptical toward TOST, with 12 of the 22 still calling it a tepid “hold,” while the 12-month consensus target price of $21.74 is still a 1.7% discount to current levels. This means there is still room for additional price-target hikes and/or upgrades.
An unwinding of short interest could also boost Toast stock. Short interest rose 13.1% over the last two reporting periods, and the 33.41 million shares sold short account for 9% of the equity’s available float.
Over in the options pits, 43,000 calls and 16,000 puts have been traded, which is 2.3 times the average daily volume. The February 21 call is most popular, indicating traders expect upside for TOST by the contract’s expiration today.
The security already boasts a 33.3% three-month lead, and late last month swung back above the 20-day moving average after a short stint below it. Shares are trading at their highest level since September, and on track for their highest single-day percentage win since August 2023.
Image and article originally from www.schaeffersresearch.com. Read the original article here.