Stephen Fredette, President of Toast, Inc. (NYSE:TOST), recently sold 54,560 shares of the company's Class A common stock. The shares were sold at an average price of $29.109, totaling approximately $1.59 million. This transaction was conducted as part of a pre-established Rule 10b5-1 trading plan, which Fredette adopted on June 11, 2024.
Following this sale, Fredette maintains direct ownership of 1,740,741 shares of Class A common stock. Additionally, he holds indirect ownership through various trusts, including the Fredette Family Nominee Trust, the SHFA 2021 Nominee Trust, and the SHFA Family Trust, with holdings of 177,500, 2,303,442, and 419,991 shares, respectively.
Fredette also owns 25,722,670 shares of Class B common stock, which can be converted into Class A shares at any time.
In other recent news, Toast Inc. has been the focus of numerous developments. The financial firm Baird has raised its price target for Toast Inc. from $28 to $30, while maintaining a neutral rating on the stock. This adjustment was made in anticipation of a stronger-than-expected third-quarter performance from the company. Baird's analysis suggests that the third-quarter EBITDA may surpass expectations, thanks to reduced employee numbers positively affecting margins.
In addition to Baird's outlook, Toast Inc. reported strong second-quarter 2024 results, surpassing expectations with significant growth in key financial metrics. The company added a record 8,000 net new locations, resulting in a 29% year-over-year increase in recurring gross profit streams. Adjusted EBITDA reached $92 million, marking a healthy 27% margin on these profit streams.
Moreover, Toast Inc. raised its full-year financial outlook based on this robust performance. The company's recurring gross profit grew by 29% year-over-year to $344 million, and SaaS ARR saw a 35% year-over-year increase. These recent developments underline Toast Inc.'s strong performance and growth potential in the restaurant management industry.
InvestingPro Insights
As Toast's President Stephen Fredette adjusts his stake in the company, investors might be curious about the broader financial picture. According to InvestingPro data, Toast boasts a substantial market capitalization of $15.82 billion, reflecting its significant 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 $4.386 billion.
Despite this growth, Toast faces profitability challenges. An InvestingPro Tip notes that the company was not profitable over the last twelve months, with an operating income margin of -2.67%. However, there's optimism on the horizon, as another InvestingPro Tip indicates that analysts predict the company will be profitable this year.
Toast's stock has shown impressive momentum, with a 61.23% price total return over the past year. This aligns with another InvestingPro Tip highlighting the large price uptick over the last six months, which stands at 25.11%. These metrics suggest investor confidence in Toast's future prospects, despite current profitability concerns.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for Toast. These tips could provide valuable context for understanding Fredette's stock sale and Toast's overall market position.
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