Toast, Inc. (NYSE:TOST), a leader in the computer processing and data preparation sector, has reported a recent transaction involving its Chief Revenue Officer, Jonathan Vassil. According to the latest filing, Vassil executed a sale of company shares on July 2, 2024, amounting to over $120,000.
The transaction involved the sale of 4,712 shares of Class A Common Stock at an average price of $25.642 per share, totaling approximately $120,825. The sale was related to the vesting and settlement of Restricted Stock Units (RSUs), and it was noted that the shares were sold to cover tax withholding obligations. This does not represent a discretionary trade by Vassil.
In addition to the sale, Vassil also acquired shares through the vesting of RSUs. On July 1, 2024, he acquired 4,748 and 4,986 shares of Class A Common Stock through the vesting of RSUs. These transactions were executed at a price of $0 per share, as RSUs convert into stock on a one-for-one basis upon vesting and do not involve a purchase price. The vesting of these RSUs is set to occur in sixteen equal quarterly installments following April 1 of 2023 and 2024, respectively.
Following these transactions, Vassil's ownership in Toast, Inc. includes a total of 36,631 shares of Class A Common Stock, demonstrating his continued investment in the company's future.
Investors and market watchers often look to the trading activities of company executives as an indicator of their confidence in the company's performance and prospects. Transactions such as these are standard in corporate governance, allowing executives to manage their stock-based compensation while maintaining a stake in the company's success.
Toast, Inc. remains a significant player in its industry, and these transactions are a routine part of executive compensation and stock ownership for the company's leadership.
In other recent news, Toast Inc., a technology solutions provider for the restaurant industry, has been the focus of various analyst firms following its Investor Day. RBC Capital Markets maintained a "Sector Perform" rating with a $27.00 target, while Baird Equity Research and Keefe, Bruyette & Woods, Inc. set targets of $28.00 and $25.00, respectively. Morgan Stanley (NYSE:MS) reaffirmed an "Overweight" rating and a $29.00 target, identifying Toast as a top pick. Piper Sandler reiterated a "Neutral" rating on Toast's stock, maintaining a $25.00 target. Needham maintained a "Buy" rating with a steady target of $30.00.
These recent developments showcase Toast's growth initiatives, which include scaling locations in its core restaurant market, expanding its total addressable market, and increasing software Average Revenue Per User (ARPU). The company's financial targets center around achieving more than 20% recurring gross profit growth annually and an adjusted EBITDA margin of 30–35% relative to recurring gross profit. These strategies are designed to bolster Toast's financial performance and market position.
Despite some concerns from analysts about the ambitiousness of these financial targets, the company's expansion into new markets and improvements in Fintech take-rates contribute to a generally positive outlook on its growth trajectory. Toast's strong cash position and pattern of beating and raising estimates further support this positive sentiment.
InvestingPro Insights
Toast, Inc. (NYSE:TOST) has been navigating a dynamic market landscape, and recent data from InvestingPro provides insights into the company's financial health and stock performance. With a market capitalization of $14.43 billion, Toast stands as a substantial entity in the computer processing and data preparation sector.
InvestingPro Tips highlight that analysts are optimistic about Toast's future, with net income expected to grow this year, and four analysts have revised their earnings upwards for the upcoming period. This suggests confidence in the company's ability to increase profitability, which may be a factor in the executive's decision to manage their stock-based compensation through recent transactions.
As for the company's financial metrics, Toast's revenue growth is notably robust, with a 36.68% increase for the last twelve months as of Q1 2024, and a 31.26% growth in the most recent quarter. However, the company's gross profit margin stands at 22.18%, which may underscore the InvestingPro Tip regarding weak gross profit margins.
The company's stock price has seen a large uptick over the last six months, with a 46.81% total return, reflecting a positive trend that aligns with the analysts' revisions and the anticipated profitability for the year. Additionally, Toast's stock is trading at a high Price / Book multiple of 11.68, which could indicate that the market has high expectations for the company's growth or that the stock is overvalued relative to its book value.
For investors interested in further analysis and metrics, InvestingPro offers additional tips that can provide deeper insights into Toast, Inc.'s performance and potential. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to a comprehensive suite of tools and data. There are 9 additional InvestingPro Tips available for Toast, Inc., which can be found at https://www.investing.com/pro/TOST.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.