Toast Inc. (NYSE:TOST) Director Christopher P. Comparato has sold a substantial number of shares in the company, according to recent filings. On July 17, 2024, Comparato sold a total of 90,000 shares of Class A Common Stock for an average price range between $26.517 and $27.09, resulting in an aggregate sale amount of over $2.3 million.
The transactions were carried out under a Rule 10b5-1 trading plan, which Comparato had previously adopted on March 1, 2024. These plans allow company insiders to set up predetermined trading arrangements for selling stocks at a later date, providing a defense against potential accusations of insider trading.
Specifically, Comparato sold 85,900 shares at weighted average prices ranging from $26.06 to $27.05, and an additional 4,100 shares were sold at prices ranging from $27.06 to $27.17. Following these transactions, Comparato's direct ownership in the company decreased to 112,282 shares of Class A Common Stock.
The filings also revealed that on the same day, the director acquired 90,000 shares through the exercise of stock options, at a price of $1.52 per share, totaling $136,800. This exercise of options is reflected in the increased number of shares owned following the transaction.
As of the date of the filing, in addition to the Class A shares, Comparato also owns 9,008,280 shares of Class B common stock of Toast Inc. Each Class B share is convertible into one share of Class A common stock at any time.
The recent transactions provide insight into the trading activities of Toast Inc.'s insiders and are a significant part of the public record for investors tracking ownership changes within the company. Toast Inc., headquartered in Boston, Massachusetts, specializes in computer processing and data preparation services, catering to the needs of the hospitality industry with its suite of software products and services.
In other recent news, Toast Inc has been the subject of multiple analyst assessments. UBS maintained its buy rating and a $31 price target for the company, predicting that Toast could acquire a low to mid-30% share of new restaurant cloud Point of Sale (POS) locations by 2025-2030. The analysis also anticipates Toast's growth in the international markets and the Food & Beverage Retail sector.
Mizuho upgraded Toast Inc.'s stock from Neutral to Outperform, increasing the company's price target to $33.00. The upgrade is based on the anticipation that Toast could become a significant US retailer by 2025, with potential cost savings boosting growth.
RBC Capital Markets and Morgan Stanley maintained their ratings with price targets of $27.00 and $29.00 respectively, emphasizing the company's plans to achieve over 20% recurring gross profit growth annually. Piper Sandler maintained a Neutral rating with a $25.00 price target, citing the company's new strategies.
These recent developments highlight the positive sentiment towards Toast's growth trajectory from several analyst firms. The consensus indicates that the company's medium-term goals for net new location additions are within reach, assuming continued expansion in both domestic and international markets, as well as within related retail sectors.
InvestingPro Insights
Amidst the recent insider trading activity at Toast Inc. (NYSE:TOST), investors are keen to understand the company's financial health and future prospects. According to InvestingPro data, Toast Inc. holds a market capitalization of $14.72 billion, indicating a significant presence in the computer processing and data preparation services sector. The company has experienced robust revenue growth over the last twelve months as of Q1 2024, with a notable increase of 36.68%, and a quarterly revenue growth of 31.26% for Q1 2024.
While the company is trading near its 52-week high, with the price at 97.38% of this peak, the InvestingPro Tips highlight that Toast Inc.'s stock price movements have been quite volatile. This volatility is reflected in the substantial price uptick over the last six months, with a 52.88% increase. Additionally, despite the strong revenue growth, Toast Inc. has been grappling with weak gross profit margins of 22.18% over the same period, which may concern some investors.
On a more positive note, Toast Inc. has liquid assets that exceed its short-term obligations, suggesting a solid liquidity position. Moreover, while the company was not profitable over the last twelve months, there is an optimistic outlook among analysts, as evidenced by four analysts revising their earnings upwards for the upcoming period. This optimism is further supported by predictions that the company will be profitable this year.
For investors looking to delve deeper into Toast Inc.'s financials and forecasts, InvestingPro offers additional insights and tips. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover why analysts are revising their earnings estimates and how this could impact your investment strategy. Visit https://www.investing.com/pro/TOST for more InvestingPro Tips, including 11 additional tips not listed here, to help you make informed investment decisions.
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