Stephen Fredette, the President of Toast , Inc. (NYSE:TOST), recently filed a report with the Securities and Exchange Commission detailing his latest transactions involving the company's stock. On November 4, Fredette sold 1,646 shares of Toast's Class A common stock at an average price of $31.078 per share, amounting to a total transaction value of $51,154.
This sale was necessary to cover tax obligations related to the vesting and settlement of Restricted Stock Units (RSUs), as noted in the filing. On November 1, Fredette also acquired 3,521 shares of Class A common stock through the conversion of RSUs, which are part of his compensation package, though this transaction did not involve a cash exchange.
Following these transactions, Fredette holds direct ownership of 1,633,262 shares of Toast's Class A common stock, with additional indirect holdings through family trusts. Additionally, he possesses 25,722,670 shares of Class B common stock, which can be converted into Class A shares at any time.
In other recent news, Toast Inc. has been the subject of several analyst updates. DA Davidson raised its price target for the company to $35.00, reflecting confidence in Toast's future prospects and anticipation of the company meeting or surpassing current forecasts. Similarly, Baird increased its price target on Toast's stock to $30, maintaining a Neutral rating while expressing a positive outlook on the company's potential. The firm also predicts a stronger than expected third-quarter performance from Toast.
In addition to these analyst updates, Toast reported strong second-quarter 2024 results, exceeding expectations with significant growth in key financial metrics. The company added a record 8,000 net new locations, contributing to a 29% year-over-year increase in recurring gross profit streams. Adjusted EBITDA reached $92 million, indicating a healthy 27% margin on these profit streams.
Based on these robust results, Toast has raised its full-year financial outlook. The full-year projections now anticipate a growth of 27% to 29% in fintech and subscription gross profit, and adjusted EBITDA projections of $285 million to $305 million. These recent developments underscore Toast's strong performance and growth potential in the restaurant management industry.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been experiencing significant growth and market attention, as reflected in both its financial metrics and stock performance. According to InvestingPro data, Toast's revenue reached $4.386 billion in the last twelve months as of Q2 2023, with a robust revenue growth of 32.19% over the same period. This strong top-line performance aligns with the company's market position and the recent insider transactions by President Stephen Fredette.
Despite the impressive revenue growth, Toast is currently not profitable, with an adjusted operating income of -$117 million in the last twelve months. However, an InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign for investors looking at the company's future prospects.
The stock's performance has been particularly noteworthy, with a one-year price total return of 73.36% as of the latest data. This strong return is complemented by another InvestingPro Tip indicating that Toast is trading near its 52-week high, with the current price at 97.59% of the 52-week high. This momentum reflects investor confidence in Toast's business model and growth potential in the restaurant technology sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Toast, providing deeper insights into the company's financial health and market position. These additional tips can be valuable for understanding the full picture of Toast's investment potential.
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