Bank of America Corp DE Buys 465,006 Shares of Toast, Inc. $TOST

Key Points

• Bank of America increased its Toast stake by 10.6%, purchasing 465,006 shares to hold 4.87 million shares worth approximately $129 million. Institutional investors collectively own 82.91% of Toast.
• Toast’s quarterly revenue reached $1.91 billion, up 23.1% year over year and above expectations, but adjusted EPS of $0.26 missed the $0.32 consensus estimate.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and $38.62 price target, although Toast’s elevated valuation and recent insider share sales remain potential concerns.

Bank of America Corp DE grew its stake in Toast, Inc. (NYSE:TOST - Free Report) by 10.6% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 4,866,197 shares of the company's stock after purchasing an additional 465,006 shares during the quarter. Bank of America Corp DE owned about 0.94% of Toast worth $129,003,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. NewEdge Advisors LLC boosted its position in Toast by 1,555.5% during the 1st quarter. NewEdge Advisors LLC now owns 17,432 shares of the company's stock valued at $578,000 after acquiring an additional 16,379 shares in the last quarter. Cerity Partners LLC lifted its stake in shares of Toast by 24.0% in the 2nd quarter. Cerity Partners LLC now owns 81,574 shares of the company's stock valued at $3,613,000 after purchasing an additional 15,774 shares during the period. State Street Corp lifted its stake in shares of Toast by 2.7% in the 2nd quarter. State Street Corp now owns 9,212,889 shares of the company's stock valued at $408,039,000 after purchasing an additional 245,276 shares during the period. Frontier Capital Management Co. LLC bought a new stake in shares of Toast during the second quarter valued at approximately $4,479,000. Finally, Sei Investments Co. boosted its position in shares of Toast by 24.6% during the second quarter. Sei Investments Co. now owns 1,030,007 shares of the company's stock valued at $45,619,000 after purchasing an additional 203,404 shares in the last quarter. 82.91% of the stock is owned by hedge funds and other institutional investors.

Toast News Summary

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Revenue exceeded expectations and growth accelerated. Toast reported second-quarter 2026 revenue of $1.91 billion, above the $1.87 billion consensus and 23.1% higher year over year. The company also added a record 9,500 net locations, supporting confidence in continued customer adoption. Toast surprises with Q2 sales
• Positive Sentiment: Management is investing its upside in AI and expansion. Toast raised its 2026 outlook and said it will reinvest in artificial intelligence, product development and geographic expansion. Recurring gross profit streams reportedly grew 28%, reinforcing the long-term scalability thesis. Toast Q2 earnings call centers on AI-led reinvestment
• Positive Sentiment: Analysts raised price targets following the results. BMO lifted its target to $40 and assigned an outperform rating, Piper Sandler raised its target to $39 with an overweight rating, and Needham increased its target to $45 with a buy rating. These actions indicate improving confidence in Toast’s growth prospects. Analyst price-target changes
• Neutral Sentiment: Options activity suggests increased speculative interest. Investors purchased 20,735 Toast call options, about 34% above typical call volume. This may reflect bullish positioning, although options activity alone does not establish a change in fundamentals.
• Negative Sentiment: Adjusted earnings missed estimates. Toast reported $0.26 in EPS versus the $0.32 consensus, despite improving from $0.13 a year earlier. The profit shortfall could temper the market’s response if investors focus on near-term margins and execution. Toast Q2 earnings metrics
• Negative Sentiment: Valuation is becoming a concern. One analyst recommended trimming the position after the rally, arguing that expectations may be getting ahead of Toast’s fundamentals. With the stock trading at a relatively elevated earnings multiple, further gains may depend on sustained growth and improved profitability. Toast valuation downgrade
• Negative Sentiment: The CRO sold shares. Chief Revenue Officer Jonathan Vassil sold 14,280 shares worth approximately $469,700. The sale occurred under a pre-arranged Rule 10b5-1 plan, making it a weaker bearish signal than discretionary insider selling. Toast insider sale

Analyst Ratings Changes

A number of equities analysts have issued reports on TOST shares. UBS Group reiterated a "buy" rating and issued a $39.00 price objective on shares of Toast in a report on Wednesday. Oppenheimer boosted their target price on shares of Toast from $36.00 to $38.00 and gave the company an "outperform" rating in a report on Wednesday. Sanford C. Bernstein upped their target price on shares of Toast from $39.00 to $45.00 and gave the stock an "outperform" rating in a research report on Thursday. Mizuho decreased their price target on shares of Toast from $45.00 to $38.00 and set an "outperform" rating for the company in a research note on Tuesday, May 12th. Finally, Citigroup lifted their price target on shares of Toast from $36.00 to $39.00 and gave the company a "buy" rating in a research report on Wednesday. Seventeen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.62.

Toast Stock Performance

Shares of NYSE:TOST opened at $34.85 on Friday. The firm has a market cap of $17.98 billion, a price-to-earnings ratio of 44.69 and a beta of 1.72. The business has a 50-day simple moving average of $28.28 and a two-hundred day simple moving average of $27.85. Toast, Inc. has a fifty-two week low of $22.26 and a fifty-two week high of $46.81.

Toast (NYSE:TOST - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.06). Toast had a net margin of 7.14% and a return on equity of 23.90%. The firm had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.87 billion. During the same period in the prior year, the company posted $0.13 EPS. The firm's revenue was up 23.1% compared to the same quarter last year. As a group, research analysts predict that Toast, Inc. will post 0.97 earnings per share for the current year.

Insider Activity

In related news, CEO Aman Narang sold 14,365 shares of the firm's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total value of $414,430.25. Following the transaction, the chief executive officer directly owned 70,451 shares of the company's stock, valued at approximately $2,032,511.35. This trade represents a 16.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Jonathan Vassil sold 14,280 shares of Toast stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $32.89, for a total value of $469,669.20. Following the transaction, the executive owned 69,966 shares in the company, valued at $2,301,181.74. This trade represents a 16.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 173,545 shares of company stock worth $4,748,501. Company insiders own 10.03% of the company's stock.

Toast Company Profile

Toast, Inc NYSE: TOST is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.

Toast's product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.

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