Toast Inc. (NYSE:TOST) General Counsel Brian R. Elworthy has sold a portion of his company shares, according to a recent filing with the Securities and Exchange Commission. On May 2, 2024, Elworthy disposed of 651 shares of Class A Common Stock at an average price of $22.96, totaling approximately $14,946.
The transaction appears to be related to the vesting and settlement of restricted stock units (RSUs). Footnotes in the SEC filing indicate that the shares sold were required to cover tax withholding obligations upon the vesting of RSUs and did not represent a discretionary trade by Elworthy. This suggests that the sale was a routine part of compensation and tax planning for the executive.
In addition to the sale, the filing also reported a non-sale transaction where Elworthy acquired 2,152 shares of Class A Common Stock. These shares were obtained through the vesting of RSUs, which convert into common stock on a one-for-one basis. The RSUs were part of an award that vests in sixteen equal quarterly installments after February 1, 2022, as detailed in the footnotes.
Following these transactions, Elworthy's direct ownership in Toast Inc. stands at 164,384 shares of Class A Common Stock. Additionally, he has an indirect ownership interest through the Brian R. Elworthy Irrevocable Trust of 2019, which holds 78,736 shares.
Toast Inc., headquartered in Boston, MA, operates within the computer processing and data preparation sector. The company provides a cloud-based, end-to-end technology platform for the restaurant industry.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company’s financial health and future prospects. However, it's worth noting that stock sales to cover tax obligations are a common practice and do not necessarily signal a lack of confidence in the company.
Toast Inc. has not issued any public statement regarding this latest transaction by its General Counsel at the time of this report.
InvestingPro Insights
Toast Inc. (NYSE:TOST) has been making waves in the market with its notable performance, and recent data from InvestingPro provides a deeper look into the company's financial health and stock behavior. The company's market capitalization stands at a robust $12.94 billion, underscoring its significant presence in the industry. While Toast has not achieved profitability over the last twelve months, analysts are optimistic, as net income is expected to grow this year, reflecting a potential turnaround in the company's earnings. This is further supported by a strong revenue growth of 41.52% over the last twelve months as of Q1 2023, which indicates that the company is expanding at a healthy pace.
InvestingPro Tips suggest that Toast Inc. suffers from weak gross profit margins, with data revealing a gross profit margin of 21.71% over the same period. This could be an area of concern for investors looking for companies with stronger profitability metrics. On the flip side, the company's liquid assets exceed short-term obligations, which may provide some reassurance regarding its liquidity and ability to meet immediate financial responsibilities.
Stock price movements for Toast Inc. have been quite volatile, but the company has experienced a strong return over the last three months, with a price total return of 25.23%. This could be indicative of investor confidence and market momentum behind the company. Additionally, Toast Inc. is trading at a high Price / Book multiple of 10.54, which may suggest that the stock is valued more for its growth potential than its current assets.
For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available for Toast Inc., which can be found at https://www.investing.com/pro/TOST. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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