David Yuan, a director at Toast , Inc. (NYSE:TOST), has sold a significant portion of his holdings in the company, according to a recent SEC filing. Yuan sold a total of 635,000 shares of Class A Common Stock over two days. The transactions, which took place on November 25 and 26, were executed at prices ranging from $43.01 to $44.02 per share, amounting to approximately $27.57 million.
Following these sales, Yuan's direct holdings in Toast stand at 26,599 shares. The shares were held indirectly through various funds, including Tidemark Fund I LP and Tidemark Fund I-A LP, with Yuan being the sole controlling member of the general partner of these funds. The transactions reflect a strategic move by Yuan, who continues to maintain a stake in the company.
In other recent news, Toast Inc. reported robust Q3 performance, with total revenue surpassing projections by 2% and adjusted EBITDA outperforming expectations by 51%. The company's management reported an increase in the midpoints of their prior Non-GAAP FinTech & Subscription gross profit and adjusted EBITDA forecasts by 4% and 21%, respectively. Following this performance, DA Davidson reduced its price target for Toast Inc. from $55 to $44 but maintained a Buy rating, signaling confidence in the company's potential.
Meanwhile, Mizuho (NYSE:MFG) Securities increased its price target for Toast from $33.00 to $40.00, maintaining an Outperform rating. This adjustment reflects the company's ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%.
In addition to financial growth, Toast launched new customer engagement products and expanded into food and beverage retail and international markets, including a partnership with Potbelly (NASDAQ:PBPB) Sandwich Works. However, operational expenditures increased by 11% due to investments in sales, marketing, and research and development. For the full year, Toast projects an adjusted EBITDA between $352 million to $362 million, reflecting a 26% margin. These are some of the recent developments surrounding Toast Inc.
InvestingPro Insights
David Yuan's decision to sell a significant portion of his Toast, Inc. (NYSE:TOST) holdings comes at a time when the company's stock is showing strong momentum. According to InvestingPro data, Toast has experienced a remarkable 193.34% price total return over the past year, with a particularly strong 43.36% return in the last month alone. This performance aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, with the current price at 97.87% of that peak.
The timing of Yuan's sale is noteworthy, as another InvestingPro Tip suggests that the stock's Relative Strength Index (RSI) indicates it may be in overbought territory. This could explain why a director might choose to realize gains at this point. Despite the sale, Toast's financial outlook appears promising, with net income expected to grow this year and analysts predicting profitability for the company in the near term.
It's worth noting that Toast's revenue growth remains strong, with a 29.5% increase over the last twelve months, reaching $4.66 billion. However, investors should be aware that the company is currently not profitable, with a negative operating income of $26 million in the same period.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for Toast, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.