Toast, Inc. Insider Share Sale

Toast, Inc. (NYSE: TOST) President Stephen Fredette has sold a significant number of shares recently, per SEC filings.

On September 18 and 19, 2024, Fredette sold a total of 40,948 shares of Class A Common Stock at prices between $27.00 and $27.14, totaling approximately $1.1 million. These sales were made under a Rule 10b5-1 trading plan adopted on June 11, 2024, which allows company insiders to sell shares at scheduled times to avoid insider trading accusations. The reported prices reflect weighted averages from multiple transaction batches.

After this sale, Fredette’s direct holdings in Class A Common Stock have decreased to 2,304,737 shares. He also retains significant indirect shares through family trusts, including 177,500 shares by the Fredette Family Nominee Trust and over 2 million shares by the SHFA trusts. Fredette additionally holds 25,722,670 shares of Class B common stock, convertible to Class A shares at any time.

The filing was signed on Fredette’s behalf by Monica Kleinman, his attorney-in-fact, on September 20, 2024. Based in Boston, Toast, Inc. specializes in computer processing and data preparation services, remaining a notable player within the tech sector.

Financial Performance

In other news, Toast Inc. has reported impressive growth and revised its full-year financial outlook following a strong second quarter in 2024. The restaurant management platform provider saw a record addition of 8,000 net new locations and a 29% year-over-year increase in recurring gross profit streams. Its adjusted EBITDA reached $92 million, showcasing a 27% margin.

Furthermore, the fintech gross profit rose by 23% in Q2, while GPV hit $40.5 billion, marking a 26% growth year-over-year. The updated projections estimate a 27% to 29% growth in fintech and subscription gross profit, alongside adjusted EBITDA projections of $285 million to $305 million.

Despite a slight uptick in churn and a 3% decline in GPV per location, the company remains positive about its growth potential, planning to enhance investment in critical business areas for the latter half of the year while maintaining a goal of breakeven on a GAAP basis.

InvestingPro Insights

The recent insider share sale has generated interest in Toast, Inc.’s financial performance. An analysis indicates that Toast has a market capitalization of $15.15 billion, despite losses in the last year. Nevertheless, analysts are optimistic about growth, with revenue increasing by 32.19% over the past twelve months and a quarterly growth rate of nearly 27%.

While the gross profit margin sits at 22.66%, and the liquidity appears strong, Toast’s stock has experienced volatility and is trading close to its 52-week high. It also has a price-to-book ratio of 12.15, which may indicate the stock is valued at a premium.

For those seeking further information, InvestingPro offers additional insights on Toast, Inc. at InvestingPro.

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