Elena Gomez, the Chief Financial Officer of Toast, Inc. (NYSE:TOST), has recently sold a significant amount of company stock, according to a new SEC filing. On July 1 and 2, Gomez sold a total of 30,880 shares of Class A Common Stock, with transactions valued at over $789,000.
The sales occurred at weighted average prices of $25.429 and $25.642 per share. Specifically, on July 1, Gomez sold 12,500 shares at an average price of $25.429, and on the following day, 18,380 shares were sold at an average price of $25.642. These transactions were part of a prearranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid concerns about insider trading.
In addition to the sales, Gomez also acquired shares through the exercise of Restricted Stock Units (RSUs). The RSUs were converted into Class A Common Stock on a one-for-one basis upon vesting. However, the filing indicates that some of these shares were required to be sold by Gomez to cover tax withholding obligations in connection with the vesting and settlement of the RSUs.
After these transactions, Gomez's holdings in Toast, Inc. have changed, but the exact post-transaction ownership is not detailed for the sales. Investors often monitor insider buying and selling as it can provide insights into a company's financial health and the confidence level of its executives.
Toast, Inc., headquartered in Boston, Massachusetts, operates in the computer processing and data preparation sector, providing technology solutions to the restaurant industry. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol TOST.
In other recent news, Toast Inc. has been the subject of various analyst ratings and strategic insights. Following the company's Investor Day, RBC Capital Markets maintained a "Sector Perform" rating, indicating confidence in Toast's growth strategy, which aims for more than 20% recurring gross profit growth annually and an adjusted EBITDA margin of 30–35% relative to recurring gross profit. Similarly, Baird Equity Research and Keefe, Bruyette & Woods, Inc. have set price targets of $28 and $25 respectively, acknowledging Toast's robust growth profile and specialized technology platform.
On the other hand, Morgan Stanley reaffirmed its confidence in Toast by maintaining an Overweight rating and a $29.00 price target. The firm highlighted Toast's potential for expanding its total addressable market and improving profitability. Meanwhile, Piper Sandler reiterated a Neutral rating, citing the company's new strategies for vertical and geographic expansion, and their financial goals focusing on margins and recurring gross profit growth.
Needham maintained a Buy rating with a steady price target of $30.00, underscoring the company's progress in capturing the small and medium-sized business restaurant market and its expansion into new domains. These recent developments indicate a positive outlook on Toast's growth trajectory and financial performance.
InvestingPro Insights
Amid the executive stock transactions at Toast, Inc. (NYSE:TOST), investors may find additional context in the company's financial health and stock performance through InvestingPro metrics. With a market capitalization of $14.43 billion, Toast has demonstrated significant revenue growth in the last twelve months as of Q1 2024, with an increase of 36.68%. This growth momentum is echoed in the quarterly figures, with a 31.26% revenue growth reported in Q1 2024.
Despite not paying a dividend to shareholders, Toast's stock has seen a large price uptick of 46.81% over the last six months, and the year-to-date price total return stands at an impressive 38.61%. This could indicate investor optimism about the company's growth trajectory. However, it's worth noting that Toast has been trading at a high Price / Book multiple of 11.68, which may raise questions about valuation among some investors.
When it comes to InvestingPro Tips, analysts predict that Toast will be profitable this year, which could be a turning point for the company's financials. Additionally, four analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's earning potential. These insights could be particularly relevant for investors considering the recent insider transactions and the overall financial health of the company.
For readers looking to delve deeper into Toast, Inc.'s financials and stock performance, InvestingPro offers a range of additional tips. There are currently 9 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's outlook. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking further valuable insights into Toast's financial landscape.
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