Toast Inc's (NYSE:TOST) General Counsel, Brian R. Elworthy, has recently sold a total of 2,573 shares of the company's Class A Common Stock, according to a Form 4 filing with the Securities and Exchange Commission. The shares were sold on July 3, 2024, at an average price of $25.642, amounting to over $65,976 in total transaction value.
The sale was executed to cover tax withholding obligations related to the vesting and settlement of Restricted Stock Units (RSUs), as indicated in the filing's footnotes. It's important to note that this transaction was required for tax purposes and was not a discretionary trade by Elworthy.
In addition to the sale, the filing also reported multiple transactions on July 1, 2024, where Elworthy acquired a significant number of shares through the vesting of RSUs. These units converted into Class A Common Stock on a one-for-one basis upon vesting. However, no monetary transaction took place during these acquisitions, as they were part of the scheduled vesting process outlined in the footnotes of the report. The RSUs had different vesting schedules, with some vesting in quarterly installments starting from April 1, 2023, and others from April 1, 2024.
Following these transactions, Elworthy's direct ownership in Toast Inc includes 170,531 shares of Class A Common Stock. Additionally, the filing mentions an indirect ownership of 78,736 shares by the Brian R. Elworthy Irrevocable Trust of 2019.
Investors often monitor insider transactions as they can provide insights into executives' confidence in the company's prospects. In the case of Toast Inc, the recent transactions by the General Counsel reflect routine financial planning related to equity compensation and do not necessarily indicate a change in the executive's outlook on the company's future performance.
Toast Inc, headquartered in Boston, Massachusetts, operates within the computer processing and data preparation industry. The company's stock is traded on the New York Stock Exchange under the ticker symbol TOST.
In other recent news, Toast Inc. has been the subject of several analyst ratings and has outlined ambitious financial targets. RBC Capital maintained its "Sector Perform" rating on Toast, keeping the price target at $27.00, following the company's Investor Day where it highlighted plans for recurring gross profit growth and adjusted EBITDA margin expansion. Similarly, Piper Sandler retained a "Neutral" rating, citing Toast's strategies for both vertical and geographic expansion and financial goals focusing on margins and recurring gross profit growth.
Morgan Stanley (NYSE:MS) reaffirmed its confidence in Toast, maintaining an "Overweight" rating and a $29.00 price target, citing an expanding total addressable market and robust growth vectors. Needham also kept its "Buy" rating on Toast with a steady price target of $30.00, following an analyst day event where Toast's management showcased the company's progress in capturing the SMB restaurant market and expanding into new domains.
These recent developments follow Toast's Investor Day where the company outlined strategies to achieve more than 20% annual recurring gross profit growth and an adjusted EBITDA margin of 30-35% as a percentage of recurring gross profit. The company's growth strategy involves increasing locations in its primary restaurant market and broadening its total addressable market, with a focus on enhancing profitability through higher software average revenue per user and improved financial technology take-rates.
InvestingPro Insights
As Toast Inc (NYSE:TOST) navigates through its financial year, recent insider transactions have caught the attention of market watchers. Delving into the performance metrics and future outlook of the company, InvestingPro data reveals a mixed picture. Toast Inc's market capitalization stands at a robust 14.43 billion USD, underscoring its significant presence in the computer processing and data preparation industry.
The company's revenue growth is particularly noteworthy, having increased by 36.68% over the last twelve months as of Q1 2024, with quarterly growth also showing a strong uptick at 31.26%. This suggests that despite challenges, Toast Inc is expanding its top-line effectively. However, the company has been grappling with profitability, as highlighted by a negative operating income margin of -5.1% for the same period, which aligns with the InvestingPro Tip that Toast Inc has not been profitable over the last twelve months.
InvestingPro Tips also indicate that analysts are optimistic about Toast Inc's prospects. Net income is expected to grow this year, and four analysts have revised their earnings upwards for the upcoming period. This could signal a turning point for the company as it strives to translate its revenue growth into bottom-line success.
For investors looking for a deeper dive into Toast Inc's financial health and future potential, there are additional InvestingPro Tips available. These insights can help build a more comprehensive understanding of the company's position and trajectory. Interested readers can access these tips and take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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