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

Toast, Inc. (NYSE:TOST) saw unusually large options trading on Wednesday. Stock investors 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.

Toast Trading Up 2.5%

TOST stock traded up $0.85 during mid-day trading on Wednesday, hitting $34.66. 11,663,706 shares of the company were exchanged, compared to its average volume of 11,794,192. The firm has a fifty day simple moving average of $27.87 and a 200 day simple moving average of $27.83. The company has a market capitalization of $17.89 billion, a PE ratio of 53.35 and a beta of 1.72. Toast has a twelve month low of $22.26 and a twelve month high of $46.81.

Toast (NYSE:TOST) last issued its earnings results on Tuesday, August 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06). Toast had a net margin of 6.39% and a return on equity of 20.86%. The company had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same quarter last year, the company posted $0.13 EPS. The business’s revenue for the quarter was up 23.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Toast will post 0.97 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Zacks Research lowered shares of Toast from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 7th. Evercore restated an “outperform” rating on shares of Toast in a research note on Wednesday. Needham & Company LLC raised their price target on shares of Toast from $35.00 to $45.00 and gave the company a “buy” rating in a report on Wednesday. UBS Group reaffirmed a “buy” rating and set a $39.00 price target on shares of Toast in a research note on Wednesday. Finally, Mizuho cut their price objective on shares of Toast from $45.00 to $38.00 and set an “outperform” rating on the stock in a report on Tuesday, May 12th. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $38.54.

Key Stories Impacting Toast

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

Insider Buying and Selling

In related news, General Counsel Brian R. Elworthy sold 6,352 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total transaction of $183,255.20. Following the sale, the general counsel directly owned 196,909 shares in the company, valued at approximately $5,680,824.65. This trade represents a 3.13% decrease in their position. The sale was disclosed in a filing with the SEC, 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 the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $32.89, for a total value of $469,669.20. Following the transaction, the executive directly 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. 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 three months, insiders have sold 173,545 shares of company stock valued at $4,748,501. 10.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of TOST. Bayban bought a new stake in shares of Toast in the 4th quarter valued at approximately $25,000. SHP Wealth Management bought a new stake in Toast during the fourth quarter valued at $29,000. Strive Financial Group LLC acquired a new stake in shares of Toast during the fourth quarter worth $29,000. Silicon Valley Capital Partners bought a new position in shares of Toast in the 4th quarter worth about $36,000. Finally, Quadrant Capital Group LLC boosted its holdings in shares of Toast by 2,083.3% in the 4th quarter. Quadrant Capital Group LLC now owns 1,048 shares of the company’s stock valued at $37,000 after buying an additional 1,000 shares during the period. Institutional investors own 82.91% 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.