Toast Inc. (NYSE:TOST) CEO Aman Narang has recently sold shares of the company's stock, according to a new SEC filing. On October 2, 2024, Narang sold a total of 10,106 shares at a price range of $27.765 per share, totaling over $280,593 in value. The sale was executed to cover tax withholding obligations related to the vesting and settlement of Restricted Stock Units (RSUs), and was not a discretionary trade.
The sale occurred after a series of transactions where Narang acquired additional shares of Class A Common Stock through the vesting of RSUs. These transactions resulted in an increase in Narang's direct ownership of shares, but did not involve any outlay of cash as the RSUs convert into Class A Common Stock on a one-for-one basis upon vesting. After the sale, Narang still held a significant number of shares directly, as well as an ownership interest in Class B common stock, which is convertible into Class A stock.
Investors often monitor the buying and selling activity of company executives as it can provide insights into their confidence in the company's future performance. In this case, the transactions were related to the CEO's vested RSUs and tax obligations, rather than market trades.
Toast Inc., based in Boston, operates in the computer processing and data preparation sector, providing technology solutions for the restaurant 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 reported a strong second quarter in 2024, exceeding expectations with key financial growth indicators. The company added a record 8,000 net new locations, contributing to a 29% year-over-year increase in recurring gross profit streams. Adjusted EBITDA reached $92 million, showcasing a healthy 27% margin on these profit streams. Furthermore, the company achieved GAAP income profitability earlier than expected.
In light of its robust performance in the first half of the year, Toast Inc. has raised its full-year financial outlook. The company expects 27% to 29% growth in fintech and subscription gross profit, with adjusted EBITDA projections of $285 million to $305 million. Additionally, the company plans to increase investment in key business areas in the second half of the year.
Despite a slight increase in churn rate and a decline in same-store sales, Toast Inc. continues to demonstrate strong performance and growth potential. The company's strategic investments and focus on leveraging AI for customer value creation position it well for continued success.
InvestingPro Insights
To provide additional context to CEO Aman Narang's recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for Toast Inc. (NYSE:TOST).
According to InvestingPro data, Toast's market capitalization stands at $15.42 billion, reflecting its significant presence in the restaurant technology sector. The company has shown impressive revenue growth, with a 32.19% increase over the last twelve months as of Q2 2024, reaching $4.386 billion. This strong top-line performance aligns with the company's expanding footprint in the restaurant industry.
Despite the robust revenue growth, Toast is currently not profitable, with an adjusted operating income of -$117 million over the last twelve months. However, an InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign for investors looking at the company's future prospects.
Another InvestingPro Tip highlights that Toast's stock price movements are quite volatile. This volatility is evident in the company's impressive year-to-date price total return of 50.22% as of the latest data. The stock's recent performance has been particularly strong, with a 14.2% return over the past month, bringing it to 93.18% of its 52-week high.
It's worth noting that while Toast does not currently pay a dividend, its liquid assets exceed short-term obligations, indicating a solid financial position to support its growth initiatives.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Toast Inc., providing a deeper understanding of the company's financial health and market position.
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