BOSTON—Kent Bennett, a director at Toast , Inc. (NYSE:TOST), reported the sale of 22,885 shares of the company's Class A common stock on November 20, 2024. The shares were sold at a weighted average price of $41.96, with transaction prices ranging from $41.95 to $42.00, totaling approximately $960,254.
In addition to his direct sales, Bennett disclosed indirect sales by entities associated with Bessemer Venture Partners, where he holds a passive economic interest. On November 20, Bessemer IX, Bessemer Institutional, Bessemer Century, and Bessemer Century Institutional sold a combined total of 570,021 shares at a weighted average price of $42.32, with prices ranging from $42.00 to $42.57. The following day, these entities sold an additional 200,063 shares at a weighted average price of $42.54, with prices ranging from $42.01 to $42.82.
Following these transactions, Bennett directly owns 395,706 shares of Toast, Inc. The transactions reflect Bennett's ongoing involvement with the company and his indirect financial interests through Bessemer Venture Partners.
In other recent news, Toast Inc. delivered a robust Q3 performance, surpassing analyst projections and prompting a revision of its full-year outlook. The cloud-based restaurant software company reported a significant expansion with 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.
DA Davidson reduced its price target for Toast Inc. to $44 from $55 while maintaining a Buy rating, following the company's third-quarter earnings report which showed total revenue exceeding its projections by 2% and adjusted EBITDA outperforming expectations by 51%. Mizuho (NYSE:MFG) Securities, on the other hand, increased its price target 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%.
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 stock sales by Kent Bennett and entities associated with Bessemer Venture Partners come at a time when Toast, Inc. (NYSE:TOST) is experiencing significant market momentum. According to InvestingPro data, Toast's stock has seen a remarkable 204.85% price total return over the past year, with a 45.52% 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, InvestingPro Tips highlight some potential concerns for investors. The company's gross profit margins are weak, and it has not been profitable over the last twelve months. However, analysts are optimistic, with InvestingPro Tips indicating that net income is expected to grow this year and that the company is predicted to be profitable in the current fiscal year.
Toast's revenue growth remains robust, with a 29.5% increase over the last twelve months, reaching $4.66 billion. This growth trajectory aligns with the company's market cap of $24.06 billion, suggesting that investors are pricing in continued expansion.
For those considering an investment in Toast, it's worth noting that InvestingPro offers 14 additional tips for TOST, providing a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable given the stock's recent volatility and its high Price / Book multiple of 16.94.
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