Toast, Inc. (NYSE:TOST) CEO Aman Narang has sold a portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which occurred on July 2, 2024, involved the sale of 6,355 shares at an average price of $25.642, totaling approximately $162,954.
The sale was part of a planned transaction to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs). It's important to note that these shares were sold to meet tax obligations and were not discretionary trades by Narang.
On the same day, Narang also acquired a significant number of shares through the vesting of RSUs. The RSUs converted into Class A Common Stock on a one-for-one basis upon vesting. However, the exact pricing details of these acquisitions were not disclosed in the filing.
As of the report date, Aman Narang's direct holdings in Toast, Inc. Class A Common Stock, following these transactions, stood at 1,131,043 shares. Additionally, Narang owns 18,912,840 shares of Class B common stock, which can be converted into Class A shares at any time.
The transactions are part of the company's regular financial disclosures and provide transparency into the trading activities of its executives. Investors often monitor such filings to gain insight into the actions of company insiders. Toast, Inc. continues to be a key player in the technology sector, offering innovative solutions in computer processing and data preparation.
For investors following Toast's stock, these filings can be accessed through the SEC's EDGAR database, providing up-to-date information on insider transactions and holdings.
In other recent news, Toast Inc. has been the subject of multiple analyst reviews following its Investor Day. The company has set ambitious financial targets, aiming to achieve more than 20% recurring gross profit growth annually and an adjusted EBITDA margin of 30–35% as a percentage of recurring gross profit. RBC Capital Markets and Piper Sandler have maintained a "Sector Perform" and "Neutral" rating respectively, with price targets of $27.00 and $25.00. Morgan Stanley has expressed confidence in the company, maintaining an "Overweight" rating and a $29.00 price target, and even setting Toast as a Top Pick. Needham also maintains a "Buy" rating on Toast stock with a steady price target of $30.00. These recent developments highlight the company's strategic growth initiatives which include expanding locations in its core restaurant market and broadening its total addressable market.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been navigating a dynamic market landscape, and recent data from InvestingPro provides a snapshot of the company's financial health and stock performance. As of the last twelve months as of Q1 2024, Toast's revenue has seen a substantial increase of 36.68%, with quarterly revenue growth at 31.26%. This suggests a strong sales trajectory that could interest investors looking for growth potential in the tech sector.
The company's stock has experienced significant volatility, with a large price uptick of 46.81% over the last six months, reflecting investor optimism. However, with a current Price / Book ratio of 11.68, the stock may be trading at a premium compared to its book value, which is something value-oriented investors might consider.
An InvestingPro Tip notes that analysts are optimistic about Toast's future, with four analysts having revised their earnings expectations upwards for the upcoming period. This could indicate a positive outlook for the company's profitability and financial performance. Additionally, while Toast has not been profitable over the last twelve months, analysts predict that the company will turn a profit this year.
For investors interested in a deeper dive into Toast's financials and stock analysis, InvestingPro offers additional insights and tips. There are currently 6 more tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/TOST. To enhance your investment research, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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