Aman Narang, CEO of Toast , Inc. (NYSE:TOST), has recently sold shares of the company, according to a regulatory filing. Narang sold 1,646 shares of Class A Common Stock on November 4, 2024, at an average price of $31.078 per share, totaling approximately $51,154.
This sale was conducted to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs), rather than being a discretionary trade. Prior to this, on November 1, Narang acquired 3,521 shares of Class A Common Stock through the conversion of RSUs, which vest in quarterly installments.
Following these transactions, Narang holds 969,970 shares directly, with an additional 9,109 shares held indirectly through The Narang Family Trust. Additionally, Narang owns 18,912,840 shares of Class B common stock, which can be converted into Class A shares at any time.
In other recent news, Toast Inc. has been the subject of increased attention from financial firms DA Davidson and Baird. DA Davidson raised its price target for the company's stock to $35.00, up from $32.00, maintaining a Buy rating. This positive outlook is based on expectations that Toast will either meet or slightly surpass current forecasts in the upcoming third-quarter earnings report.
Simultaneously, Baird raised its price target for Toast from $28 to $30, maintaining a Neutral rating. This adjustment follows the anticipation of a stronger than expected third-quarter performance from the company. Baird expects recurring gross profit to be about 2% higher than the market consensus, largely due to financial technology volume.
In addition to these developments, Toast Inc. reported strong second-quarter 2024 results, surpassing expectations with significant growth in key financial metrics. The company added a record 8,000 net new locations, contributing to a 29% year-over-year increase in recurring gross profit streams. Based on this robust performance, Toast has raised its full-year financial outlook. These recent developments highlight the positive trajectory of the company.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been experiencing significant growth and market attention, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, Toast's revenue for the last twelve months as of Q2 2024 stood at $4.39 billion, with a robust revenue growth of 32.19% over the same period. This strong top-line performance aligns with the company's market position and the recent insider transactions by CEO Aman Narang.
Despite the impressive revenue growth, Toast is currently not profitable, with an operating income of -$117 million for the last twelve months. However, an InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign for investors considering the company's future prospects.
The stock has shown remarkable performance, with a one-year price total return of 73.36% as of the latest data. This strong return is complemented by another InvestingPro Tip indicating that Toast is trading near its 52-week high, with the current price at 97.59% of its highest point over the past year.
It's worth noting that Toast's stock price movements are quite volatile, which investors should consider when evaluating the recent insider transactions and overall investment potential. For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide deeper insights into Toast's financial health and market position.
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