In a recent transaction, Susan Chapman-Hughes, a director at Toast , Inc. (NYSE:TOST), sold 15,285 shares of the company's Class A common stock. The shares were sold at a weighted average price of $42.114 each, resulting in total proceeds of approximately $643,712. Following this sale, Chapman-Hughes retains ownership of 30,530 shares in the company. The sale was executed on November 20, 2024, according to the Form 4 filing with the Securities and Exchange Commission.
In other recent news, Toast Inc. has been the subject of noteworthy financial adjustments and projections. Following a robust third-quarter performance, DA Davidson lowered its stock target for Toast Inc. by 20% to $44, despite maintaining a Buy rating due to strong growth in adjusted EBITDA. This adjustment came after the company's revenue surpassed DA Davidson's initial estimates by 2%. In contrast, Mizuho (NYSE:MFG) Securities increased its price target for Toast Inc. from $33.00 to $40.00, maintaining an Outperform rating, reflecting the company's ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%.
Furthermore, Toast Inc.'s third-quarter earnings report showcased significant growth. The company added approximately 7,000 net new locations, a 28% year-over-year increase, bringing the total to nearly 127,000. Recurring gross profit streams grew by 35%, with adjusted EBITDA reaching $113 million and GAAP operating income hitting $34 million. This strong performance led to an upgraded full-year outlook.
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. However, operational expenditures increased by 11% due to investments in sales, marketing, and research and development. For the full year, Toast projects an adjusted EBITDA between $352 million to $362 million, reflecting a 26% margin. These are some of the recent developments surrounding Toast Inc.
InvestingPro Insights
The recent insider sale by Susan Chapman-Hughes comes at a time when Toast, Inc. (NYSE:TOST) is experiencing significant market momentum. According to InvestingPro data, Toast's stock has shown a remarkable 202.14% price total return over the past year, with a 44.23% surge in the last month alone. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 98.73% of that peak.
Despite the impressive stock performance, investors should note that Toast is not yet profitable over the last twelve months. However, an InvestingPro Tip suggests that net income is expected to grow this year, and analysts predict the company will turn profitable in the current fiscal year. This optimism is further supported by the fact that 5 analysts have revised their earnings upwards for the upcoming period.
Toast's revenue growth remains robust, with a 29.5% increase over the last twelve months, reaching $4.66 billion. However, the company's gross profit margin stands at a modest 23.36%, which aligns with another InvestingPro Tip indicating that Toast suffers from weak gross profit margins.
For investors considering Toast's valuation, it's worth noting that the stock is trading at a high Price / Book multiple of 17.09. This elevated valuation metric, combined with the stock's recent strong performance, suggests that Toast may be priced at a premium relative to its book value.
These insights are just a snapshot of the comprehensive analysis available on InvestingPro. Subscribers can access 14 additional tips for Toast, providing a more in-depth understanding of the company's financial health and market position.
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