Toast Inc. (NYSE:TOST) President Stephen Fredette recently sold shares of the company's stock, according to a new SEC filing. On October 2, 2024, Fredette sold a total of 5,511 shares at an average price of $27.765 per share, totaling over $153,000.
The transactions took place amidst Fredette's acquisition of shares through the vesting of Restricted Stock Units (RSUs). The RSUs were converted into Class A Common Stock on a one-for-one basis upon vesting. However, the sale of shares was required to cover tax withholding obligations associated with the vesting and settlement of these units, and it was not considered a discretionary trade.
In addition to the sold shares, Fredette acquired a substantial number of shares through the vesting of RSUs on October 1, 2024. The RSUs vested in various installments following April 1st of 2022, 2023, and 2024, according to the footnotes of the SEC filing.
The SEC filing also noted that as of the date of the report, Fredette owned an aggregate of 25,722,670 shares of the Class B common stock of Toast Inc. Each share of Class B common stock is convertible at any time into one share of Class A common stock, suggesting potential for further changes in ownership stakes.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's future. Toast Inc., headquartered in Boston, MA, operates within the computer processing and data preparation industry and is known for its technology solutions for the restaurant industry.
For those tracking the market movements of Toast Inc., the recent transactions by its President could be of interest as they reflect the ongoing financial decisions made by company insiders.
In other recent news, Toast Inc. demonstrated a robust performance in its second-quarter 2024 results, surpassing expectations with significant growth in key financial metrics. The company added a record 8,000 net new locations, contributing to a 29% year-over-year increase in recurring gross profit streams and achieving GAAP income profitability ahead of schedule. Adjusted EBITDA reached $92 million, reflecting a healthy 27% margin on these profit streams.
The company's recurring gross profit grew by 29% year-over-year to $344 million, with a 35% year-over-year increase in SaaS ARR and a 24% increase in payments ARR. Fintech gross profit rose by 23% in the second quarter, with GPV surging to $40.5 billion, marking a 26% year-over-year growth.
Toast Inc. also updated its full-year outlook, now anticipating 27% to 29% growth in fintech and subscription gross profit, and adjusted EBITDA projections of $285 million to $305 million. However, the company also noted a 3% decline in GPV per location in Q2, primarily due to a decline in same-store sales.
The company plans to increase investment in key business areas in the second half of the year. Adjusted EBITDA for Q3 is projected to be between $70 million and $80 million, and the company expects to maintain breakeven on a GAAP basis for the remainder of the year. These are among the recent developments in Toast Inc.'s ongoing business operations.
InvestingPro Insights
To complement the recent insider transaction information, let's delve into some key financial metrics and insights for Toast Inc. (NYSE:TOST) provided by InvestingPro.
Toast's market capitalization currently stands at $15.42 billion, reflecting its significant presence in the restaurant technology sector. The company has shown impressive revenue growth, with a 32.19% increase over the last twelve months as of Q2 2024, reaching $4.386 billion. This robust top-line growth aligns with the company's expanding footprint in the restaurant industry.
Despite the strong revenue performance, Toast is not yet profitable over the last twelve months. However, an InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign for investors considering the recent insider transactions.
The stock has demonstrated strong performance, with a 57.92% price total return over the past year. This substantial gain might explain why some insiders, like President Stephen Fredette, are selling shares, possibly to realize gains or manage their personal portfolios.
It's worth noting that Toast's stock price movements are quite volatile, according to another InvestingPro Tip. This volatility could present both opportunities and risks for investors, and may be a factor in the timing of insider transactions.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Toast Inc., providing a more comprehensive view of the company's financial health and market position.
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