Toast, Inc. (NYSE:TOST) Principal Accounting Officer, James Michael Matlock, has recently engaged in transactions involving the company's stock, according to a new SEC filing. On July 2, 2024, Matlock sold a total of 1,854 shares of Class A Common Stock at an average price of $25.642, resulting in over $47,540 in proceeds. This sale was part of the process to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs).
The transactions occurred shortly after Matlock acquired shares through the vesting of RSUs. These units convert into Class A Common Stock on a one-for-one basis upon vesting and settlement, as noted in the footnotes of the SEC filing. The vesting schedule for these RSUs is set in equal quarterly installments, with two different vesting commencement dates indicated for separate batches of RSUs.
Following the sale, Matlock's ownership in the company has been adjusted to reflect the reduced number of shares. Toast, Inc., headquartered in Boston, operates within the computer processing and data preparation industry, providing a platform for restaurants to manage operations, increase sales, and create a better guest experience.
Investors and followers of Toast, Inc. may find these transactions of interest as they reflect activities of a high-level executive within the company. It's worth noting that the sale of stock by an executive can be for a variety of reasons and does not necessarily reflect the executive's outlook on the company's future performance.
The financial movements of company insiders are often monitored by investors as they may provide insights into the company's performance or insider perspectives. Toast, Inc. shares are publicly traded, and investors can track the performance of their stock under the ticker symbol NYSE:TOST.
In other recent news, Toast Inc. has been the focus of several Wall Street analysts. RBC Capital Markets maintained a "Sector Perform" rating with a price target of $27.00, while Baird Equity Research set a price target of $28.00. Similarly, Keefe, Bruyette & Woods, Inc. rated Toast as "Market Perform" with a price target of $25.00. Morgan Stanley, on the other hand, identified Toast as its Top Pick with a $29.00 price target. Piper Sandler reiterated a Neutral rating on Toast with a $25.00 price target, and Needham maintained a Buy rating with a steady price target of $30.00.
These recent developments show that analysts are closely monitoring Toast's strategic initiatives, which include scaling locations in its core restaurant market, expanding its total addressable market, increasing software Average Revenue Per User (ARPU), improving Fintech take-rate, and delivering operating leverage across the organization. The company's financial targets center around achieving more than 20% recurring gross profit growth annually and an adjusted EBITDA margin of 30–35% as a percentage of recurring gross profit.
Toast's growth trajectory and financial performance have drawn mixed reactions from analysts, with some expressing concerns about the ambitious financial targets and others highlighting the company's potential to achieve significant recurring gross profit growth and improved financial outlook. Despite these varying perspectives, Toast continues to remain a key player in the restaurant technology sector.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been a subject of interest for investors due to recent insider transactions and its performance in the market. As we delve into the financial health and forecast for the company, a couple of InvestingPro Tips highlight key aspects investors may consider:
An important aspect to consider is that analysts have a positive outlook on Toast's profitability, with net income expected to grow this year. Additionally, there have been four instances where analysts revised their earnings upwards for the upcoming period, indicating potential confidence in the company's financial trajectory.
Complementing these InvestingPro Tips, real-time data from InvestingPro provides a snapshot of Toast's financial metrics. As of the last twelve months ending in Q1 2024, the company has reported a robust revenue growth of 36.68%, with a quarterly growth rate of 31.26%. Despite this growth, the company's gross profit margin stands at 22.18%, which may be considered weak compared to industry standards. Moreover, Toast's stock price has experienced a significant uptick over the last six months, with a 46.81% return, reflecting investor optimism in the face of volatility.
Investors looking for deeper insights and additional tips can find more information on InvestingPro's platform, including 9 additional InvestingPro Tips for Toast, Inc. at https://www.investing.com/pro/TOST. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which can provide valuable guidance for making informed investment decisions.
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