Top 10 Stocks to Buy According to XN Exponent Advisors LLC

5. Toast, Inc. (NYSE:TOST)

Number of Hedge Fund Holders as of Q4: 63

XN Exponent Advisors LLC’s Equity Stake: $168.77 Million 

Stephen Fredette, President of Toast, Inc. (NYSE:TOST), recently sold a significant number of company shares, according to an SEC filing. On March 17, 2025, Fredette offloaded 118,060 shares of Class A common stock at prices between $35.00 and $35.13, totaling approximately $4.1 million. This sale comes as Toast’s stock has shown strong volatility, gaining 25% over the past six months and trading above its perceived fair value. Despite the insider transaction, the company maintains a market valuation of $19.4 billion, reflecting continued investor confidence in its growth trajectory.

Toast, Inc. (NYSE:TOST), a Boston-based provider of cloud-based restaurant management solutions, has expanded rapidly since its launch in 2020. The company offers an integrated point-of-sale (POS) system built on the Android platform, with products such as the Flex terminal, Tap payment processor, and Toast Hub. In its fourth-quarter 2024 earnings report, the company demonstrated significant financial growth. Annual recurring revenue (ARR) rose 34% year-over-year to $1.6 billion, while restaurant locations using its platform increased by 26% to approximately 134,000. Gross payment volume (GPV) surged 25% to $42.2 billion. Notably, Toast, Inc. (NYSE:TOST) reported a turnaround in profitability, with GAAP income from operations reaching $32 million, compared to a $56 million loss in the previous year. Adjusted EBITDA saw a remarkable increase to $111 million, nearly four times higher than the prior year’s $29 million.

For the full year 2024, Toast, Inc. (NYSE:TOST) continued its upward momentum, with GPV climbing 26% to $159.1 billion and gross profit from subscription services and financial technology increasing by 34% to $1.4 billion. Adjusted EBITDA rose significantly to $373 million, up from $61 million in 2023, while net cash from operating activities more than doubled to $360 million. Looking ahead to the first quarter of 2025, the company anticipates non-GAAP gross profit between $385 million and $395 million, with adjusted EBITDA projected to range from $100 million to $110 million. With a growing customer base and solid financial performance, the company is a top stock to buy according to XN Exponent Advisors LLC.