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

Stephen Fredette, President of Toast, Inc., sold shares of Class A Common Stock on September 18 and 19, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Stephen Fredette, President of Toast, Inc., reported the sale of Class A Common Stock on September 18 and 19, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on June 11, 2024.
• On September 18, 2024, 800 shares were sold at a weighted average price of $27.001, with prices ranging from $27.00 to $27.01.
• On September 19, 2024, 40,148 shares were sold at a weighted average price of $27.033, with prices ranging from $27.00 to $27.14.
• Following these transactions, Fredette directly owns 2,304,737 shares of Class A Common Stock.
• Fredette also indirectly owns 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 sentiment is neutral as the transactions were pre-planned under a 10b5-1 trading plan. It doesn't necessarily indicate a positive or negative outlook on the company's future.

Industry Context

Sales by company insiders are common and often pre-planned using Rule 10b5-1 trading plans to avoid accusations of trading on non-public information. The market typically analyzes the size and frequency of these sales to gauge insider sentiment.

Comparison to Industry Standards

• Comparing Fredette's transactions to similar filings by executives at comparable companies like Block (SQ) or Shopify (SHOP) would provide context on the scale and frequency of insider selling.
• Reviewing the 10b5-1 plans of executives at similar companies can provide insight into the motivations and strategies behind these transactions.
• Analyzing the stock performance of Toast (TOST) relative to its peers after similar insider sales can help determine the market's reaction to such events.

Stakeholder Impact

• Shareholders may react to insider selling, although pre-planned sales under Rule 10b5-1 plans are generally viewed as less concerning.
• The sales could have a minor impact on the stock price in the short term.

Key Dates