Christopher Comparato, a director at Toast , Inc. (NYSE:TOST), has sold shares worth approximately $5.75 million, according to a recent SEC filing. The transactions, executed on November 21, involved the sale of 135,000 shares of Class A common stock at prices ranging from $42.601 to $43.112 per share. These sales were part of a pre-established trading plan under Rule 10b5-1, which Comparato adopted earlier this year.
In addition to the sales, Comparato exercised stock options to acquire 135,000 shares at a price of $1.52 per share, reflecting a total value of $205,200. Post-transaction, Comparato holds 142,451 shares of Class A common stock directly. He also retains ownership of 9,008,280 shares of Class B common stock, which can be converted into Class A shares at any time.
These transactions are part of routine financial management for executives and do not necessarily indicate any change in Comparato's confidence in the company's future prospects. Toast, Inc., headquartered in Boston, provides software and hardware solutions for the restaurant industry.
In other recent news, Toast Inc. demonstrated a robust growth in its third-quarter earnings, surpassing projections and leading to increased outlooks for the full year. Total (EPA:TTEF) revenue exceeded DA Davidson's estimates by 2%, and adjusted EBITDA outperformed expectations by 51%. In response, DA Davidson lowered its stock target for Toast by 20%, yet maintained a Buy rating, reflecting confidence in the company's growth trajectory.
Similarly, Mizuho (NYSE:MFG) Securities increased its price target for Toast from $33.00 to $40.00, maintaining an Outperform rating. This adjustment was influenced by Toast's ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%.
In addition to financial growth, Toast launched new customer engagement products and expanded into food and beverage retail and international markets, including a partnership with Potbelly (NASDAQ:PBPB) Sandwich Works. Despite an 11% increase in operational expenditures due to investments in sales, marketing, and research and development, Toast projects an adjusted EBITDA between $352 million to $362 million for the full year. These recent developments underscore the company's operational strength and potential for continued success.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been experiencing significant market momentum, as evidenced by its strong performance metrics. According to InvestingPro data, the company's stock has shown remarkable growth, with a 202.14% price total return over the past year and a 131.98% return year-to-date. This aligns with the recent insider transaction by Christopher Comparato, who sold shares at prices above $42 per share.
The company's revenue growth remains robust, with a 29.5% increase in the last twelve months, reaching $4.66 billion. This growth trajectory supports the InvestingPro Tip that net income is expected to grow this year, potentially improving the company's profitability outlook.
However, investors should note that Toast is currently trading near its 52-week high, with the stock price at 98.73% of its peak. An InvestingPro Tip suggests that the RSI indicates the stock may be in overbought territory, which could be relevant for those considering the timing of investments.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Toast, Inc., providing deeper insights into the company's financial health and market position.
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