Brian R. Elworthy, General Counsel at Toast, Inc. (NYSE:TOST), recently sold 300,000 shares of Class A Common Stock, according to a Form 4 filing with the SEC. The shares were sold at a weighted average price of $30.387, generating a total of approximately $9.1 million. This transaction was part of a Rule 10b5-1 trading plan adopted earlier this year.
In the same filing, Elworthy reported acquiring 300,000 shares through the exercise of stock options at a price of $1.52 per share. Following these transactions, Elworthy holds 177,836 shares directly and 78,736 shares indirectly through the Brian R. Elworthy Irrevocable Trust of 2019.
In other recent news, Toast Inc. has demonstrated robust growth in its financial metrics, surpassing expectations. The company's second quarter of 2024 results showed a record addition of 8,000 net new locations, which led to a 29% year-over-year increase in recurring gross profit streams and an adjusted EBITDA of $92 million. This strong performance prompted Toast to revise its full-year financial outlook upwards.
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 adjustment follows the anticipation of a stronger than expected third-quarter performance. Baird's analysis suggests that recurring gross profit for the third quarter may be about 2% higher than the market consensus, with the company's software and services sector predicted to slightly outperform Street estimates.
Despite the positive developments, 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, highlighting potential growth areas. Looking ahead, Baird anticipates a mild increase in the company's guidance for the year 2024.
InvestingPro Insights
As Toast, Inc. (NYSE:TOST) General Counsel Brian R. Elworthy executes significant stock transactions, investors might find additional context from InvestingPro's real-time data and tips valuable.
Toast's market capitalization stands at $16.59 billion, reflecting its position as a notable player in the restaurant technology sector. The company's revenue for the last twelve months as of Q2 2023 reached $4.39 billion, with an impressive revenue growth of 32.19% over the same period. This robust top-line performance aligns with the company's expanding footprint in the restaurant industry.
InvestingPro Tips highlight that Toast's stock price has seen a large uptick over the last six months, which is corroborated by the data showing a 33.27% price total return over the same period. This positive momentum may have influenced the timing of Elworthy's stock sale.
Another relevant InvestingPro Tip notes that Toast is expected to become profitable this year, which could be a significant milestone for the company and potentially impact future insider trading decisions. This expectation is particularly interesting given that the company was not profitable over the last twelve months, as another tip points out.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Toast, providing a deeper understanding of the company's financial health and market position.
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