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

Stephen Fredette, President of Toast, Inc., sold 19,627 shares of Class A Common Stock at a weighted average price of $28.001 per share on September 24, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• On September 24, 2024, Stephen Fredette, the President of Toast, Inc., sold 19,627 shares of Class A Common Stock.
• The sale was executed at a weighted average price of $28.001 per share, with individual transactions ranging from $28.00 to $28.01.
• The transaction was conducted under a Rule 10b5-1 trading plan adopted on June 11, 2024.
• Following the transaction, Fredette directly owns 2,078,682 shares of Class A Common Stock.
• Fredette also indirectly owns shares through several family trusts: 177,500 shares via the Fredette Family Nominee Trust, 419,991 shares via the SHFA Family Trust, and 2,303,442 shares via the SHFA 2021 Nominee 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 SEC Form 4 filing, indicating a routine transaction. The sale was conducted under a pre-arranged trading plan, suggesting it's not necessarily indicative of the executive's view on the company's future prospects.

Industry Context

Sales by executives are a normal part of corporate governance. It is important to note that the sale was executed under a pre-arranged 10b5-1 trading plan, which allows corporate insiders to sell shares over a predetermined period of time to avoid accusations of insider trading.

Stakeholder Impact

• The sale of shares by a company executive could be perceived negatively by some shareholders, but the existence of a 10b5-1 trading plan mitigates this concern.

Key Dates