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

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

Summary

• Stephen Fredette, President of Toast, Inc., filed a Form 4 detailing changes in beneficial ownership.
• On May 9, 2025, Fredette sold multiple blocks of Class A Common Stock at weighted average prices ranging from $40.659 to $42.154.
• These sales were executed under a Rule 10b5-1 trading plan adopted on December 4, 2024.
• On May 12, 2025, Fredette made a bona fide gift of 107,738 shares of Class A Common Stock.
• Additional sales of Class A Common Stock occurred on May 12, 2025, at weighted average prices around $42.50.
• The transactions involved both direct and indirect ownership through various trusts, including the SHFA 2021 Nominee Trust and the SHFA Family Trust.
• Following these transactions, Fredette directly owns 946,772 shares of Class A Common Stock.
• Fredette also indirectly owns shares through the SHFA 2021 Nominee Trust (1,718,029 shares), the SHFA Family Trust (224,853 shares), and the Fredette Family Nominee Trust (66,896 shares).
• 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 filing primarily reports stock sales under a pre-arranged trading plan and a gift of shares, which are routine transactions. There's no indication of positive or negative implications for the company's performance.

Industry Context

Executive stock sales are a common occurrence, especially when executed under pre-arranged trading plans like Rule 10b5-1, which allows insiders to sell shares over a period of time without being accused of trading on insider information. The market typically views these sales in the context of the executive's overall holdings and the reasons behind the trading plan.

Comparison to Industry Standards

• Comparing Fredette's transactions to other executives in the restaurant technology sector is difficult without knowing the specifics of their compensation packages and trading plans.
• However, similar filings from executives at companies like Block (formerly Square) or Lightspeed Commerce could provide a benchmark for understanding the scale and frequency of insider transactions in this industry.
• Generally, the market looks at the percentage of total holdings sold and the timing relative to company performance and industry trends to assess the impact of such sales.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders if they interpret the sales as a lack of confidence by the executive, although the 10b5-1 plan mitigates this concern.
• Employees may also be sensitive to insider transactions, but the pre-planned nature of the sales should reassure them.
• The gift of shares is unlikely to have a significant impact on any stakeholder group.

Key Dates

Keywords

Form 4, Toast Inc., Stephen Fredette, Class A Common Stock, Beneficial Ownership, 10b5-1 Trading Plan, Stock Sales, SHFA 2021 Nominee Trust, SHFA Family Trust, Fredette Family Nominee Trust