Toast Inc. president Fredette executes stock transactions worth over $53k

  • Investing.com
  • Stock Market News
Toast Inc. president Fredette executes stock transactions worth over $53k

Toast Inc. President Stephen Fredette recently engaged in a series of stock transactions involving the company's shares, according to a Form 4 filing with the Securities and Exchange Commission. The transactions, which took place on April 1st and 2nd, resulted in a net sale of over $53,000 worth of Class A common stock.

On the first day of April, Fredette acquired additional shares of Toast Inc. (NYSE:TOST) through the vesting of Restricted Stock Units (RSUs), which convert into Class A Common Stock on a one-for-one basis. While the filing did not disclose any monetary transaction for these acquisitions, it noted that the RSUs vest over time, with a portion vesting on April 1st, 2022, and the remainder over the following three years.

However, on April 2nd, Fredette sold 2,272 shares of Class A common stock at an average price of $23.396 per share. This sale was not a discretionary trade but was required to cover tax withholding obligations connected to the vesting and settlement of RSUs, as per the footnotes in the filing. The total value of the shares sold amounted to $53,155.

The filing also revealed that, as of the date of the Form 4, Fredette owns a significant number of Class B common stock shares, which are convertible into Class A shares at any time. The total number of Class B shares owned by Fredette is 25,972,670.

Investors often monitor the buying and selling activities of company insiders like Fredette as these transactions can provide insights into their perspective on the company's current valuation and future prospects. Toast Inc., with its headquarters located at 333 Summer Street, Boston, MA, operates within the computer processing and data preparation industry, providing technology solutions to the restaurant sector.

The recent transactions by Toast Inc.'s President are part of the routine financial disclosures required by corporate insiders, providing transparency into their dealings with the company's equity.

For more detailed information on the transactions, investors can refer to the Form 4 filed with the SEC.

InvestingPro Insights

As investors delve into the recent transactions involving Toast Inc. (NYSE:TOST) and consider the company's future, several metrics and tips from InvestingPro can offer additional perspectives. With a market capitalization of $12.82 billion, Toast Inc. has caught the attention of the market, particularly as its revenue has shown significant growth of 41.52% over the last twelve months as of Q1 2023.

An important InvestingPro Tip for Toast Inc. is the anticipated net income growth this year. This is a crucial factor for investors who are tracking the company's profitability trajectory. Another notable aspect is that Toast Inc. is expected to become profitable this year, as per analyst predictions, which could be a turning point for the company's financials.

However, there are challenges to consider. The company suffers from weak gross profit margins, which stood at 21.71% over the last twelve months as of Q1 2023, indicating that despite increasing revenues, the cost of goods sold is taking a sizable portion of the revenue. Additionally, the company's stock price movements have been quite volatile, which could be a concern for risk-averse investors. The 3-month price total return as of the latest data was 35.73%, showcasing significant short-term growth, yet this volatility may not align with every investment strategy.

InvestingPro also notes that Toast Inc. does not pay a dividend to shareholders, which could influence the investment decisions of those seeking regular income streams. Moreover, the company has been trading at a high Price/Book multiple of 10.68, suggesting a premium valuation compared to its book value.

For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available for Toast Inc. on the platform, which can be accessed at https://www.investing.com/pro/TOST. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insights to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100