Toast Insiders sell Stock worth US$264m, possibly signaling caution.
Many Toast Inc. (NYSE) Insiders have sold their stock in the last year. This may be of interest for the company’s shareholders.
It is often more useful to know whether insiders are purchasing stock than insider transactions. Insider selling can be caused by many reasons. Shareholders should be aware that multiple insiders selling stock within a certain time frame could signal a red flag.
Although insider transactions may not be the most important aspect of long-term investment, it is logical to monitor what insiders do.
Toast Insider Transactions in the Last Year
Steven Papa, an insider, was the one who made the largest insider sale within the past 12 months. The transaction involved US$51m in shares, at a price per share of US$14.23. This means that insiders were selling shares at a slightly lower price than the current price of US$18.32. Insiders who sell shares at a lower price than the current price indicate that they consider that price fair.
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We are curious to know what they think about the recent (higher) valuation. We are not certain what their opinions are about the stock price. Sellers may have many reasons to sell. The largest single sale was 25% of Steven Papa’s holding.
Toast insiders have sold more products than they have bought in the past year. Below is a visual representation of insider transactions by companies and individuals over the past 12 months. Click on the graph to see all details about each insider transaction.
Toast will be more enjoyable if there are big insider purchases. This list contains a number of companies that have made significant insider purchases in recent years.
Recent Stock Sales by Insiders at Toast
Toast has seen significant insider selling over the past three months. In particular, insiders sold US$2.6m of shares during that period, but we did not record any purchases. This could indicate that insiders believe that shares aren’t cheap.
Insider Ownership
The total shareholdings of insiders can be used to help you assess whether they are aligned with common shareholders. The likelihood that insiders are incentivised for long-term growth is higher if there is more insider ownership.
It is great to see that 25% of Toast’s company shares are owned by insiders. This amount is approximately US$2.4b. This level of insider ownership increases the likelihood that management will be thinking in the best interest of shareholders.
What Could The Insider Transactions at Toast Tell Us?
Although insiders have sold stock in recent times, they haven’t been buying. Our longer-term analysis of insider transactions did not inspire confidence. We aren’t surprised that the company boasts high insider ownership. However, we are a bit hesitant considering the history of share sale.
We love to know what is happening with insider transactions and ownership, but we also make sure we consider the risks associated with a stock before we make any investment decisions. Toast has 2 warning signs that could indicate investment risk. Understanding these should be part your investment process.
However, Toast might not be the best stock for you to purchase. Take a look at this list of companies with low debt and high ROE.
