Boston-based Toast, Inc. (NYSE:TOST), a leader in the computer processing and data preparation industry, has seen a significant transaction from its Chief Revenue Officer, Jonathan Vassil. According to the latest SEC filing, Vassil has sold 100,000 shares of Class A Common Stock at a weighted average price range of $25.04 to $25.92, culminating in a total sale value of approximately $2.56 million.
The transaction, which took place on July 15, 2024, was executed under a Rule 10b5-1 trading plan previously adopted by Vassil on December 14, 2023. Rule 10b5-1 trading plans allow company insiders to set up a predetermined plan to sell company stocks in a way that avoids accusations of insider trading.
In addition to the sale, Vassil also exercised options to acquire the same number of shares at a strikingly lower price of $0.52 per share, which amounted to a transaction total of $52,000. This exercise of options was reported alongside the sale in the SEC filing. Following these transactions, Vassil's ownership in Toast, Inc. has been adjusted to 31,919 shares of Class A Common Stock directly held.
Investors and market watchers closely monitor such insider transactions as they can provide insights into the company's financial health and executive confidence in the business. Toast, Inc. has not released any official statements regarding this transaction, and it remains to be seen how this will impact the company's stock performance in the days to come.
For those interested in Toast, Inc.'s market activities, the 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 multiple analyst evaluations following its Investor Day. RBC Capital Markets maintained a "Sector Perform" rating with a price target of $27.00, while Baird Equity Research and Keefe, Bruyette & Woods, Inc. set price targets of $28.00 and $25.00 respectively. Morgan Stanley affirmed its confidence in Toast, maintaining an Overweight rating and a $29.00 price target, setting Toast as a top pick. Piper Sandler reiterated a Neutral rating with a $25.00 price target, and Needham maintained a Buy rating with a steady price target of $30.00.
These recent developments come as Toast aims 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. The company's growth initiatives involve scaling locations in its core restaurant market, expanding its total addressable market, and improving its Fintech take-rate. Analysts have highlighted Toast's strong cash position and pattern of beating and raising estimates as positive indicators for its growth trajectory.
Despite some concerns about the ambitiousness of Toast's financial targets and potential challenges in achieving operating leverage, the company's specialized technology platform and comprehensive suite of services have allowed it to capture a significant market share. Around 10-12% of US restaurants are reportedly using Toast's products, signaling potential for further market penetration.
InvestingPro Insights
Amidst the insider trading activities, Toast, Inc. (NYSE:TOST) presents an interesting profile in terms of its financial health and market performance. An analysis of real-time data from InvestingPro highlights several metrics that are particularly relevant for investors considering the implications of the Chief Revenue Officer's recent stock transactions.
Toast's market capitalization stands at a robust $14.39 billion, reflecting the company's substantial size and presence in the industry. Despite a challenging profitability landscape, as indicated by a negative P/E ratio of -55.77 and adjusted P/E ratio for the last twelve months as of Q1 2024 at -71.24, there is optimism about the company's future. This is underscored by an impressive revenue growth of 36.68% over the last twelve months, signaling strong business expansion.
InvestingPro Tips suggest that Toast's net income is expected to grow this year, which may alleviate concerns about the company's current lack of profitability. Additionally, the company has experienced a large price uptick over the last six months, with a 49.83% price total return, indicating robust investor confidence and market momentum. However, potential investors should be aware of the company's weak gross profit margins, currently at 22.18%, which could impact future profitability.
For those considering a deeper dive into Toast's financials and stock performance, there are 13 additional InvestingPro Tips available at https://www.investing.com/pro/TOST. Moreover, using the coupon code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering valuable insights for making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.