Laura Schenkein, the Chief Financial Officer of Trade Desk, Inc. (NASDAQ:TTD), recently sold shares of the company's Class A Common Stock. The transaction, which occurred on November 18, involved the sale of 3,131 shares at an average price of $117.97, amounting to a total value of $369,364. This sale was executed under a 10b5-1 trading plan adopted by Schenkein in March 2024.
Prior to this sale, Schenkein engaged in several transactions on November 15, where shares were withheld to satisfy tax obligations related to the vesting of Restricted Stock Unit Awards. These transactions involved a total of 5,955 shares at a price of $118.15 each, with the total value of these transactions reaching $703,583. Following these transactions, Schenkein now holds 684,867 shares of Trade Desk.
In other recent news, The Trade Desk has shown significant growth in its recent earnings report. The company's third-quarter results revealed a 27% year-over-year revenue increase, reaching $628 million, largely propelled by its Connected TV (CTV) advertising growth. Adjusted EBITDA for the same period was approximately $257 million, making up 41% of the revenue, with free cash flow reported at $222 million.
Analysts from Loop Capital and BMO Capital Markets have maintained positive stances on The Trade Desk, citing strong performance and future growth potential. Loop Capital has kept a Buy rating and increased the price target to $145, up from the previous target of $120. BMO Capital Markets has maintained an Outperform rating and raised the stock's price target to $125 from $108.
Loop Capital's analyst has noted the potential for growth through increased penetration of advertising budgets and potential regulatory actions addressing Google (NASDAQ:GOOGL)'s dominance in adtech. In contrast, BMO Capital Markets highlighted The Trade Desk's potential to capitalize on disruptions in Google's advertising technology business due to regulatory pressures. Both firms see The Trade Desk's collaborations with major companies such as Netflix (NASDAQ:NFLX), Spotify (NYSE:SPOT), Disney (NYSE:DIS), Walmart (NYSE:WMT), and LG as beneficial for future growth.
For the fourth quarter, The Trade Desk projects a revenue of at least $756 million, indicating a 25% growth year-over-year, and an adjusted EBITDA of approximately $363 million. These projections underscore the company's strong position in the advertising industry and its focus on the growing CTV market.
InvestingPro Insights
While Laura Schenkein's recent stock sale might raise eyebrows, it's essential to consider The Trade Desk's (NASDAQ:TTD) broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $58.97 billion and has demonstrated impressive revenue growth, with a 26.14% increase over the last twelve months as of Q3 2024. This growth trajectory aligns with an InvestingPro Tip indicating that net income is expected to grow this year.
The Trade Desk's financial health appears robust, with an InvestingPro Tip highlighting that the company holds more cash than debt on its balance sheet. This strong liquidity position is further supported by the fact that liquid assets exceed short-term obligations, providing a solid foundation for future growth and investments.
Despite the recent insider sale, The Trade Desk's stock has shown remarkable performance, with a 74.26% price total return over the past year. This aligns with another InvestingPro Tip noting the company's high return over the last year. However, investors should be aware that the stock is trading at a high P/E ratio of 189.6, which may indicate high growth expectations.
For those seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for The Trade Desk, providing deeper insights into the company's financial health and market position.
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