Christopher Comparato, a director at Toast, Inc. (NYSE:TOST), recently reported significant stock transactions, according to a filing with the Securities and Exchange Commission. On October 17, Comparato sold a total of 125,000 shares of Toast's Class A Common Stock. The sales, which took place under a prearranged trading plan, were executed at prices ranging from $29.205 to $29.562, amounting to approximately $3.65 million.
In addition to the sales, Comparato exercised options to acquire 125,000 shares at a price of $1.52 per share. Following these transactions, Comparato holds 134,627 shares of Toast's Class A Common Stock directly. Additionally, he owns 9,008,280 shares of Class B Common Stock, which can be converted to Class A shares at any time.
In other recent news, Toast Inc. has demonstrated significant growth in its financial performance. The company exceeded expectations in the second quarter of 2024, adding a record 8,000 net new locations and increasing its recurring gross profit by 29% year-over-year to $344 million. Adjusted EBITDA for the same period reached $92 million, marking a healthy 27% margin on these profit streams.
In light of these developments, financial firm Baird has updated its outlook on Toast Inc., raising the price target to $30 from the previous $28 while maintaining a neutral rating. The firm's analysts anticipate a stronger than expected third-quarter performance from the company, with recurring gross profit projected to be about 2% higher than the market consensus.
On the downside, Toast Inc. experienced a 3% decline in GPV per location in Q2, primarily due to a decrease in same-store sales. However, the company's core U.S. SMB and mid-market business contributed significantly to the net additions. Looking ahead, Baird anticipates a mild increase in the company's guidance for the year 2024, reflecting the positive developments projected in the company's financial performance.
InvestingPro Insights
As Toast, Inc. (NYSE:TOST) director Christopher Comparato engages in significant stock transactions, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Toast boasts a substantial market capitalization of $16.6 billion, reflecting its strong presence in the restaurant technology sector.
The company's revenue growth remains robust, with a 32.19% increase over the last twelve months as of Q2 2024, reaching $4.39 billion. This growth trajectory aligns with an InvestingPro Tip suggesting that net income is expected to grow this year, potentially indicating improving financial health.
Despite not being profitable over the last twelve months, Toast's stock has shown impressive momentum. The company has delivered a high return over the last year, with a one-year price total return of 65.96%. This performance is further emphasized by the stock trading near its 52-week high, with the current price at 98.86% of that peak.
Investors should note that Toast's stock price movements are quite volatile, which could explain the timing of insider transactions like Comparato's. The company's price-to-book ratio stands at a high 13.28, suggesting that the market values Toast's growth potential and intangible assets significantly.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Toast, providing a more comprehensive view of the company's prospects and challenges.
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