Jonathan Vassil, the Chief Revenue Officer of Toast, Inc. (NYSE:TOST), has recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Vassil sold 50,000 shares of Class A Common Stock on October 18, 2024, at a weighted average price of $30.385 per share. This transaction amounted to a total of approximately $1.52 million.
The sale was executed under a Rule 10b5-1 trading plan, which Vassil adopted on May 31, 2024. This type of plan allows company insiders to set up a predetermined schedule for selling stocks, thereby helping to avoid any accusations of insider trading.
In addition to the sale, Vassil also exercised stock options to acquire 50,000 shares of Class A Common Stock at a price of $0.52 per share. Following these transactions, Vassil's direct ownership in Toast stands at 38,266 shares.
In other recent news, Toast Inc. reported impressive growth in its second quarter of 2024, with significant increases in key financial metrics. The restaurant management platform provider added a record 8,000 net new locations, leading to 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. Following this strong performance, Toast revised its full-year financial outlook upwards.
Financial firm Baird also 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, projecting recurring gross profit to be about 2% higher than the market consensus. This forecast is attributed to the financial technology volume, which is expected to align with the Street's predictions.
Despite these positive developments, Toast 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, highlighting potential growth areas. 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
Toast, Inc. (NYSE:TOST) has been experiencing significant growth and market attention, as evidenced by Jonathan Vassil's recent stock transactions. To provide a more comprehensive view of the company's financial health and market position, let's examine some key metrics from InvestingPro.
Toast's revenue growth remains robust, with a 32.19% increase over the last twelve months as of Q2 2024, reaching $4.386 billion. This strong performance aligns with the company's market cap of $16.59 billion, suggesting investor confidence in Toast's business model and growth trajectory.
An InvestingPro Tip indicates that Toast's net income is expected to grow this year, which could be a positive sign for investors following the recent insider stock sale. Additionally, three analysts have revised their earnings upwards for the upcoming period, potentially reflecting optimism about the company's near-term prospects.
However, it's worth noting that Toast suffers from weak gross profit margins, with a gross profit margin of 22.66% in the last twelve months. This metric may be an area of focus for the company's management as they strive to improve profitability.
The stock's performance has been impressive, with a 67.92% total return over the past year and a substantial 33.27% return in the last six months. This upward trend aligns with the InvestingPro Tip highlighting Toast's high return over the last year.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Toast, providing a deeper understanding of the company's financial health and market position.
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