Toast, Inc.'s (NYSE:TOST) Principal Accounting Officer, James Michael Matlock, recently sold 787 shares of the company's Class A Common Stock, according to a new SEC filing. The transaction, which took place on March 15, 2024, amounted to a total of $18,566. These shares were sold at a weighted average price of $23.591, with individual sales prices ranging from $23.37 to $23.80.
The sale was conducted under a Rule 10b5-1 trading plan, which Matlock had adopted on February 24, 2023. Rule 10b5-1 plans are pre-arranged trading plans that provide a defense against insider trading allegations by allowing insiders to sell shares at predetermined times.
Following the transaction, Matlock's direct ownership in the company stands at 38,993 shares. The SEC filing noted that full information regarding the number of shares sold at each separate price within the reported range would be provided upon request.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial management reasons, unrelated to their outlook on the company's performance.
Toast, Inc., headquartered in Boston, MA, operates in the computer processing and data preparation sector, offering technology solutions for the restaurant industry. The company's stock is listed on the New York Stock Exchange under the ticker symbol TOST.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been a company of interest for investors, particularly due to its performance in the technology solutions sector for restaurants. As of the last twelve months as of Q1 2023, Toast has seen a significant revenue growth of 41.52%, with a quarterly revenue increase of 34.9%. Despite these impressive growth figures, the company's gross profit margin stands at 21.71%, highlighting some challenges in profitability.
InvestingPro Tips suggest that analysts are optimistic about Toast's potential for profitability, with two analysts revising their earnings upwards for the upcoming period. Additionally, it's noted that Toast's net income is expected to grow this year, which could signal a positive shift for the company's financial health. On the other hand, the company's stock price movements have been quite volatile, which may be a point of consideration for investors looking for stability.
From a financial standpoint, Toast's market capitalization is currently valued at approximately $12.91 billion USD. However, the company does not have a current P/E ratio due to a lack of profitability over the last twelve months. The Price / Book ratio is relatively high at 10.79, which might indicate that the stock is trading at a premium compared to its book value.
For investors interested in more detailed analysis and additional insights, InvestingPro offers more tips on Toast, Inc. and other companies, which can be accessed through their service. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable information to guide their investment decisions.
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