Bennett Richard Kent, a director at Toast , Inc. (NYSE:), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Bennett sold 100,000 shares of Toast Class A common stock on November 12, 2024, at a weighted average price of $36.67 per share. This transaction amounted to approximately $3.67 million.
The shares were sold in multiple transactions, with prices ranging from $38.50 to $38.88. Following this sale, Bennett holds 418,591 shares directly.
In addition to Bennett’s transactions, entities associated with Bessemer Venture Partners, where Bennett is a partner, executed several sales. On November 11, 2024, these entities sold a substantial number of shares, including 366,472 shares by Bessemer IX and 293,600 shares by Bessemer Institutional, at a weighted average price of $37.72 per share. The following day, they sold additional shares at a higher average price of $38.75, and on November 13, 2024, further sales were made at an average price of $40.09.
These transactions reflect ongoing changes in the ownership stakes of Toast’s directors and major shareholders.
In other recent news, Toast Inc. delivered a robust Q3 performance, exceeding expectations and leading to an upgraded full-year outlook. The cloud-based restaurant software company reported a significant expansion with approximately 7,000 net new locations, a 28% year-over-year increase, bringing the total to nearly 127,000. Recurring gross profit streams grew by 35%, with adjusted EBITDA reaching $113 million and GAAP operating income hitting $34 million.
Analysts from DA Davidson and Mizuho (NYSE:) Securities provided their insights on these developments. DA Davidson lowered its price target for Toast from $55 to $44, maintaining a Buy rating due to strong EBITDA growth. Despite the target reduction, DA Davidson’s stance remains positive, reflecting confidence in Toast’s growth trajectory.
On the other hand, Mizuho Securities increased its price target from $33 to $40, maintaining an Outperform rating. This adjustment was influenced by Toast’s ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%.
In addition to financial growth, Toast launched new customer engagement products and expanded into food and beverage retail and international markets, including a partnership with Potbelly (NASDAQ:) Sandwich Works. However, operational expenditures increased by 11% due to investments in sales, marketing, and research and development. For the full year, Toast projects an adjusted EBITDA between $352 million to $362 million, reflecting a 26% margin. These are some of the recent developments surrounding Toast Inc.
InvestingPro Insights
The recent stock sales by Toast, Inc. (NYSE:TOST) director Bennett Richard Kent and entities associated with Bessemer Venture Partners come at a time when the company’s stock is showing strong momentum. According to InvestingPro data, Toast has experienced a significant 171.38% price total return over the past year, with a particularly strong 41.81% return in the last month alone.
This surge in stock price aligns with an InvestingPro Tip indicating that Toast is trading near its 52-week high, with the current price at 98.49% of that peak. The stock’s robust performance is further underscored by its impressive year-to-date return of 118.62%.
Despite the positive price action, investors should note that Toast’s financials present a mixed picture. The company’s revenue growth remains strong at 29.5% over the last twelve months, reaching $4.66 billion. However, an InvestingPro Tip highlights that Toast is not profitable over the last twelve months, with an operating income of -$26 million for the same period.
For those considering an investment in Toast, it’s worth noting that InvestingPro offers 15 additional tips that could provide further insights into the company’s financial health and market position. These tips, along with real-time metrics, can be invaluable for making informed investment decisions in the dynamic restaurant technology sector.
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