Sell Alert: Aman Narang Cashes Out $83K In Toast Stock

Disclosed on August 6, Aman Narang, CEO at Toast TOST, executed a substantial insider sell as per the latest SEC filing.

What Happened: After conducting a thorough analysis, Narang sold 1,719 shares of Toast. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $83,158.

Monitoring the market, Toast's shares up by 0.57% at $46.2 during Thursday's morning.

All You Need to Know About Toast

Toast is an end-to-end technology platform designed to address the complex needs of the restaurant industry. The company generates point-in-time revenue through sales of its restaurant-grade hardware and recurring revenue in the form of take rates on restaurant transaction volume as well as subscriptions to its software solutions. As of fiscal 2024, the company provided services to 134,000 restaurant locations primarily in the US. Toast's typical customer is a mid-market restaurant generating slightly more than $1 million in revenue annually.

Understanding the Numbers: Toast's Finances

Revenue Growth: Over the 3 months period, Toast showcased positive performance, achieving a revenue growth rate of 15.93% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Exploring Profitability:

• Gross Margin: With a low gross margin of 25.29%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Toast's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.14.

Debt Management: Toast's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 117.79 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.13 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Toast's EV/EBITDA ratio stands at 98.82, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Understanding the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Toast's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.