Stock Traders Purchase Large Volume of Call Options on Toast (NYSE:TOST)

Key Points

• Toast call-option activity surged: Traders purchased 20,735 call options, about 34% above the stock’s average daily call volume, signaling heightened bullish interest.
• Analyst sentiment remains positive: Piper Sandler and Truist raised their price targets, while 18 analysts rate Toast a Buy and nine rate it a Hold. The consensus rating is “Moderate Buy,” with a target price of $38.54.
• Revenue beat expectations, but EPS missed: Toast reported quarterly revenue of $1.91 billion, up 23.1% year over year and above estimates, while EPS of $0.26 fell short of the $0.32 consensus. Shares traded at $34.66, up $0.85.

Toast, Inc. (NYSE:TOST - Get Free Report) saw unusually large options trading on Wednesday. Stock traders acquired 20,735 call options on the stock. This is an increase of approximately 34% compared to the average daily volume of 15,465 call options.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on TOST shares. Piper Sandler boosted their price objective on shares of Toast from $32.00 to $39.00 and gave the company an "overweight" rating in a research report on Wednesday. Citigroup restated a "buy" rating on shares of Toast in a research report on Wednesday. DA Davidson lifted their target price on shares of Toast from $28.00 to $30.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of Toast in a report on Wednesday, May 20th. Finally, Truist Financial increased their price target on Toast from $30.00 to $33.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $38.54.

Insider Buying and Selling

In other news, CFO Elena Gomez sold 11,605 shares of the company'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 $334,804.25. Following the sale, the chief financial officer directly owned 185,150 shares in the company, valued at $5,341,577.50. This represents a 5.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Brian R. Elworthy sold 108,000 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.89, for a total value of $2,796,120.00. Following the sale, the general counsel directly owned 189,642 shares in the company, valued at approximately $4,909,831.38. The trade was a 36.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 173,545 shares of company stock valued at $4,748,501. Company insiders own 10.03% of the company's stock.

Hedge Funds Weigh In On Toast

A number of large investors have recently modified their holdings of the company. Capelight Capital Asset Management LP acquired a new stake in shares of Toast in the fourth quarter worth $2,131,000. Robeco Institutional Asset Management B.V. lifted its holdings in shares of Toast by 6.3% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 972,230 shares of the company's stock valued at $34,524,000 after acquiring an additional 57,512 shares in the last quarter. Lecap Asset Management Ltd. lifted its holdings in shares of Toast by 206.7% during the 4th quarter. Lecap Asset Management Ltd. now owns 59,123 shares of the company's stock valued at $2,099,000 after acquiring an additional 39,847 shares in the last quarter. Campbell Capital Management Inc. purchased a new stake in Toast during the 4th quarter worth $9,812,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Toast by 11.5% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 514,992 shares of the company's stock worth $18,287,000 after purchasing an additional 52,959 shares during the period. 82.91% of the stock is currently owned by hedge funds and other institutional investors.

Toast Price Performance

NYSE:TOST traded up $0.85 during trading hours on Wednesday, reaching $34.66. 11,663,706 shares of the company were exchanged, compared to its average volume of 11,794,192. The firm has a market cap of $17.89 billion, a price-to-earnings ratio of 53.35 and a beta of 1.72. The stock has a 50 day simple moving average of $27.87 and a 200 day simple moving average of $27.83. Toast has a 52-week low of $22.26 and a 52-week high of $46.81.

Toast (NYSE:TOST - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by ($0.06). The company had revenue of $1.91 billion for the quarter, compared to analysts' expectations of $1.87 billion. Toast had a net margin of 6.39% and a return on equity of 20.86%. The firm's quarterly revenue was up 23.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.13 earnings per share. On average, analysts predict that Toast will post 0.97 EPS for the current fiscal year.

Key Toast News

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Toast raised its 2026 outlook after a strong quarter. Management said second-quarter recurring gross profit streams grew 28%, GAAP operating-income margins expanded to 26%, and the company added a record 9,500 net locations. Toast also plans to reinvest part of its upside into AI and further expansion, supporting expectations for continued growth. Toast Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Revenue exceeded expectations. Toast reported second-quarter revenue of $1.91 billion, above the $1.87 billion consensus estimate and up 23.1% year over year. The customer-location gains indicate continued adoption of its restaurant technology and fintech platform. Toast Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Analysts raised their valuations and ratings. BMO Capital Markets increased its price target from $35 to $40 and assigned an “outperform” rating. Piper Sandler raised its target from $32 to $39 with an “overweight” rating, while Needham lifted its target from $35 to $45 and issued a “buy” rating. The upgrades suggest improving confidence in Toast’s growth and profitability trajectory. Analyst price-target upgrades
• Neutral Sentiment: Reported earnings varied by source and measurement. Toast was reported at $0.26 per share versus a $0.32 consensus in one earnings release, while Zacks cited adjusted earnings of $0.34 per share, above estimates. Investors are likely to focus on the company’s exact non-GAAP results and forward guidance. Toast Q2 earnings report
• Negative Sentiment: AI and expansion spending could pressure near-term margins. Reinvestment may strengthen Toast’s long-term competitive position, but higher costs could temper earnings growth as the stock trades at an elevated valuation.
• Negative Sentiment: An executive sold shares. Chief Revenue Officer Jonathan Vassil sold 14,280 shares worth approximately $469,700 under a pre-arranged Rule 10b5-1 trading plan. The plan reduces the significance of the sale as a discretionary bearish signal. SEC insider-trading filing

About Toast

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source