Form 4: Toast Inc. President Stephen Fredette Executes Stock Sales and Gift Under 10b5-1 Plan

Stephen Fredette, President of Toast Inc., reports sales of Class A Common Stock and a gift of shares, executed under a pre-arranged 10b5-1 trading plan.

Summary

• On September 10, 2024, Stephen Fredette, President of Toast Inc., sold 211,686 shares of Class A Common Stock at a weighted average price of $23.567 per share.
• The sales occurred in multiple transactions with prices ranging from $23.210 to $23.775.
• On the same day, Fredette gifted 42,338 shares of Class A Common Stock.
• On September 11, 2024, Fredette sold 98,426 shares of Class A Common Stock at a weighted average price of $25.001 per share, with prices ranging from $25.00 to $25.01.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on June 11, 2024.
• Following these transactions, Fredette directly owns 2,497,259 shares of Class A Common Stock.
• Fredette also indirectly owns 177,500 shares through the Fredette Family Nominee Trust, 2,303,442 shares through the SHFA 2021 Nominee Trust, and 419,991 shares through the SHFA Family Trust.
• Fredette also 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 sentiment is neutral as the document primarily reports stock sales and a gift under a pre-arranged trading plan, which is a common and legal practice. There is no indication of positive or negative implications for the company's performance.

Industry Context

This filing is a routine disclosure of insider transactions. It's common for executives to use 10b5-1 plans to sell shares over time to avoid accusations of trading on inside information. The gift of shares is also a common practice for estate planning or charitable giving.

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 ensure compliance with insider trading regulations.
• Comparing Fredette's transactions to those of executives at similar companies like Block (SQ) or Shopify (SHOP) would provide context on the scale and frequency of insider selling.

Key Dates