Toast, Inc. (NYSE:TOST) recently disclosed that its Chief Revenue Officer, Jonathan Vassil, has sold shares of the company's Class A Common Stock. The transaction, which took place on April 2, 2024, involved the sale of 2,282 shares at a price of $23.396 per share, resulting in a total value of $53,389.
The sale was related to the vesting and settlement of Restricted Stock Units (RSUs), as noted in the footnotes of the filing. It is important to point out that the shares sold were necessary to cover tax withholding obligations and do not represent a discretionary trade by Vassil.
In addition to the sale, Vassil also acquired 4,748 shares of Class A Common Stock on April 1, 2024, through the conversion of RSUs. These RSUs convert into Class A Common Stock on a one-for-one basis upon vesting and settlement. The footnotes further clarify that the RSUs are set to vest in sixteen equal quarterly installments following April 1, 2023.
Following these transactions, Vassil's direct ownership in Toast, Inc. stands at 25,422 shares of Class A Common Stock. Additionally, he holds 56,975 RSUs that will convert into Class A Common Stock upon future vesting dates.
These transactions provide investors with insight into the stock trading activities of one of Toast, Inc.'s top executives. The company, which specializes in computer processing and data preparation, is headquartered in Boston, Massachusetts, and trades under the ticker symbol TOST on the New York Stock Exchange.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been making headlines not only for its executive stock transactions but also for its financial performance and market valuation. According to real-time data from InvestingPro, Toast boasts a robust market capitalization of $12.82 billion, reflecting investor confidence in the company's growth prospects.
InvestingPro Data highlights a significant revenue growth for Toast, with the last twelve months as of Q4 2023 showing a 41.52% increase, reaching $3.865 billion. This growth is further emphasized by a quarterly revenue growth of 34.9% in Q4 2023. Despite these impressive top-line figures, the company's gross profit margin stands at 21.71%, indicating some challenges in profitability.
One of the InvestingPro Tips suggests that Toast's net income is expected to grow this year, which could signal an upcoming shift towards profitability, a crucial factor for investors. However, the company is currently trading at a high Price / Book multiple of 10.68, which may raise questions about valuation among cautious investors.
In the context of the recent share sale by the Chief Revenue Officer, it's worth noting that Toast's stock price has experienced a strong return over the last three months, with a 35.73% increase. This could partially explain the timing of the transaction, as executives often plan their stock sales to coincide with periods of strong stock performance.
Moreover, Toast does not pay a dividend to shareholders, which is typical for companies focused on reinvesting earnings into growth opportunities. For investors interested in gaining deeper insights into Toast's financial health and future prospects, there are additional InvestingPro Tips available, which can be accessed through the dedicated InvestingPro page for Toast at https://www.investing.com/pro/TOST.
Investors looking to leverage these insights and more can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With several more tips listed on InvestingPro, such as the company's liquidity position and analysts' profitability predictions, subscribers can make more informed investment decisions backed by comprehensive analysis.
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