BOSTON—Kent Bennett, a director at Toast , Inc. (NYSE:TOST), has reported a series of stock sales according to a recent SEC filing. On November 15, 2024, Bennett disclosed the sale of 221,722 shares by Bessemer IX and 177,633 shares by Bessemer Institutional at a weighted average price of $40.61 per share. The transactions occurred at prices ranging from $40.46 to $40.71.
Further sales were reported on November 18, with Bessemer IX selling 157,762 shares and Bessemer Institutional selling 126,392 shares at an average price of $40.32, within a range of $40.00 to $41.00.
On November 19, additional sales included 154,178 shares by Bessemer IX and 123,519 shares by Bessemer Institutional at an average price of $40.38, with transaction prices ranging from $40.00 to $41.00. Another set of sales on the same day saw 272,912 shares from Bessemer IX and 218,644 shares from Bessemer Institutional sold at an average price of $41.74, with prices ranging from $41.01 to $42.01. Finally, Bessemer IX and Bessemer Institutional sold 136,368 and 109,251 shares, respectively, at an average price of $42.33, ranging from $42.02 to $42.51.
Bennett, who holds a passive economic interest in these shares through his role at Bessemer Venture Partners, reported these transactions as indirect ownership. The sales reflect ongoing management of holdings by Bessemer Venture Partners in Toast, Inc.
In other recent news, Toast Inc. demonstrated robust growth in its third-quarter earnings, leading to an upward revision of its full-year outlook. The cloud-based restaurant software company added approximately 7,000 net new locations, a 28% year-over-year increase, bringing the total to nearly 127,000. The company's recurring gross profit streams grew by 35%, with adjusted EBITDA reaching $113 million. Operational expenditures increased by 11% due to investments in sales, marketing, and research and development.
DA Davidson adjusted its outlook on Toast, reducing the price target to $44 from the previous $55, while maintaining a Buy rating. This adjustment follows Toast's Q3 earnings report, which showed total revenue surpassing DA Davidson's projections by 2% and adjusted EBITDA outperforming their expectations by 51%. Despite the price target reduction, DA Davidson remains confident in Toast's growth trajectory.
On the other hand, Mizuho (NYSE:MFG) Securities increased its price target for Toast from $33.00 to $40.00, maintaining an Outperform rating. This adjustment reflects Toast's ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%. Mizuho praised Toast's third-quarter achievements and expressed confidence in the company's growth trajectory.
These are some of the recent developments surrounding Toast Inc.
InvestingPro Insights
The recent stock sales by Kent Bennett, a director at Toast, Inc. (NYSE:TOST), come at a time when the company's stock is showing strong performance. According to InvestingPro data, Toast has seen a remarkable 175.38% price total return over the past year, with a 31.33% return in just the last month. This aligns with an InvestingPro Tip indicating that the stock has had a "Strong return over the last month" and is "Trading near 52-week high."
Despite the positive stock performance, it's worth noting that Toast is currently trading at a high Price / Book multiple of 18.14, which could suggest the stock is relatively expensive. This is reflected in an InvestingPro Tip that points out the company is "Trading at a high Price / Book multiple."
From a financial perspective, Toast's revenue growth remains robust, with a 29.5% increase over the last twelve months as of Q3 2024, reaching $4.658 billion. However, the company is not yet profitable, with an operating income of -$26 million over the same period. This mixed financial picture is captured by InvestingPro Tips, which note that while Toast "Suffers from weak gross profit margins," analysts predict the company "will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Toast, providing a deeper understanding of the company's financial health and market position.
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