Form 4: Toast Inc. President Stephen Fredette Executes Stock Sales and Gift Transactions

Stephen Fredette, President of Toast Inc., reports sales of Class A Common Stock and a gift transaction, while maintaining significant holdings in both Class A and Class B common stock.

Summary

• On October 16, 2024, Stephen Fredette, President of Toast Inc., sold 40,459 shares of Class A Common Stock at a weighted average price of $29.042 per share.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on June 11, 2024.
• On October 17, 2024, Fredette gifted 68,895 shares of Class A Common Stock.
• Following these transactions, Fredette directly owns 1,631,387 shares of Class A Common Stock.
• Fredette also indirectly owns shares through several trusts: 177,500 shares via the Fredette Family Nominee Trust, 2,303,442 shares via the SHFA 2021 Nominee Trust, and 419,991 shares via the SHFA Family Trust.
• Additionally, Fredette owns 25,722,670 shares of Class B common stock, each convertible into one share of Class A common stock.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing stock transactions. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about insider trading activity.

Industry Context

This filing is a routine disclosure of insider transactions. Monitoring such filings can provide insights into management's perspective on the company's valuation and future prospects. It is common for executives to have 10b5-1 trading plans to diversify their holdings over time.

Comparison to Industry Standards

• Executive stock sales are a common occurrence in publicly traded companies.
• The use of 10b5-1 trading plans is a standard practice to avoid accusations of insider trading.
• Comparing Fredette's transactions to those of executives at similar companies like Block (SQ) or Shopify (SHOP) could provide context, but would require additional research into their filings.

Stakeholder Impact

• The stock sales could have a minor negative impact on shareholder sentiment if interpreted as a lack of confidence by the President, although the use of a 10b5-1 plan mitigates this concern.
• The gift transaction is unlikely to have a significant impact on stakeholders.

Key Dates