Toast Inc. shares fell 25% over the past month. The stock has dropped 36% over the last year, despite the company reporting strong revenue growth.
The company's price-to-sales (P/S) ratio is now moderate. This valuation aligns with the broader Diversified Financial industry, suggesting investors anticipate a slowdown in previously high revenue growth.
Analysts note Toast's revenue has grown significantly. The current P/S ratio suggests market uncertainty about maintaining this momentum.
Future revenue growth forecasts remain higher than the industry average. This outlook presents an opportunity if performance continues, but also reflects underlying risks the market may be pricing in.
On the institutional side, Hantz Financial Services Inc. significantly increased its holdings in Toast. The firm acquired 97,400 shares in the third quarter.