Form 4: Toast Inc. President Stephen Fredette Sells Shares Under 10b5-1 Trading Plan

Toast Inc.'s President, Stephen Fredette, sold 54,560 shares of Class A Common Stock at an average price of $29.109 per share under a pre-arranged 10b5-1 trading plan.

Summary

• On October 10, 2024, Stephen Fredette, President of Toast, Inc., sold 54,560 shares of Class A Common Stock.
• The sale was executed at a weighted average price of $29.109 per share, with individual transactions ranging from $29.00 to $29.49.
• The transaction was conducted under a Rule 10b5-1 trading plan adopted on June 11, 2024.
• Following the transaction, Fredette directly owns 1,740,741 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: Neutral sentiment as it's a routine disclosure of a pre-planned stock sale. The existence of a 10b5-1 plan suggests the sale was planned well in advance and doesn't necessarily reflect a change in the executive's view of the company's prospects.

Industry Context

This filing is a routine disclosure of insider trading activity. It is common for executives to use 10b5-1 trading plans to sell shares over time to avoid accusations of trading on inside information.

Comparison to Industry Standards

• Comparing insider selling activity to peers requires analyzing similar filings from executives at companies like Block (SQ), Lightspeed Commerce (LSPD), and Shopify (SHOP).
• The size and frequency of these sales, as well as the use of 10b5-1 plans, are typical benchmarks for assessing insider sentiment.
• Analyzing the overall trend of insider transactions (buying vs. selling) across these companies provides a broader view of industry confidence.

Stakeholder Impact

• The sale of shares by a high-ranking executive could be perceived negatively by some shareholders, potentially leading to short-term price fluctuations.
• However, the existence of a 10b5-1 trading plan mitigates this concern, as it indicates a pre-planned and orderly disposal of shares.

Key Dates