Elena Gomez, the Chief Financial Officer of Toast , Inc. (NYSE:TOST), recently sold a portion of her holdings in the company. According to a recent SEC filing, Gomez sold 1,917 shares of Toast's Class A Common Stock on November 4, 2024, at an average price of $31.078 per share, totaling approximately $59,576. This transaction was made to cover tax withholding obligations related to the vesting and settlement of Restricted Stock Units (RSUs) and was not a discretionary trade by Gomez. Following this sale, Gomez holds 159,615 shares of Toast's Class A Common Stock.
In other recent news, Toast Inc. has been in the spotlight with several developments. The company's third-quarter earnings report is eagerly anticipated, following positive projections from DA Davidson and Baird. DA Davidson raised its price target for the company to $35.00, reflecting confidence in Toast's performance and future prospects. Baird also increased its price target to $30, maintaining a Neutral rating while acknowledging the company's potential.
Toast's second-quarter 2024 results exceeded expectations, with key financial metrics showing robust growth. The company added a record 8,000 net new locations, leading to a 29% year-over-year increase in recurring gross profit streams. Adjusted EBITDA reached $92 million, marking a healthy 27% margin on these profit streams. Following this strong performance, Toast revised its full-year financial outlook upwards.
Despite a slight increase in churn rate and a 3% decline in GPV per location, Toast's core U.S. SMB and mid-market business contributed significantly to net additions. The company anticipates increased investment in key business areas, maintaining a breakeven on a GAAP basis for the remainder of the year. These recent developments provide a glimpse into the company's financial trajectory and performance.
InvestingPro Insights
To provide additional context to Elena Gomez's recent stock transaction, it's worth examining some key financial metrics and insights from InvestingPro regarding Toast, Inc. (NYSE:TOST).
According to InvestingPro data, Toast's market capitalization stands at $17.04 billion, reflecting its significant presence in the restaurant technology sector. The company has shown impressive revenue growth, with a 32.19% increase in the last twelve months as of Q2 2024, reaching $4.386 billion. This strong top-line performance aligns with the company's expanding market share and adoption of its platform by restaurants.
However, Toast is currently not profitable, with an operating income of -$117 million in the last twelve months. This is reflected in its negative P/E ratio of -87.34, indicating that the company is still in a growth phase and investing heavily in expansion.
InvestingPro Tips highlight that Toast's stock price has shown strong performance, with a 73.36% return over the last year and a 33.33% return over the last six months. The stock is currently trading near its 52-week high, with its price at 97.59% of the highest point in the past year. This positive momentum could be attributed to investor optimism about Toast's growth prospects and market position.
It's important to note that Toast does not pay a dividend to shareholders, which is common for high-growth technology companies reinvesting profits into business expansion. The company's Price to Book ratio of 13.5 suggests that investors are placing a premium on Toast's future growth potential.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for Toast, providing a more comprehensive view of the company's financial health and market position. These insights can be particularly valuable for understanding the context of executive stock transactions like Elena Gomez's recent sale.
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