Laura Schenkein, the Chief Financial Officer of Trade Desk, Inc. (NASDAQ:TTD), recently executed a significant stock transaction. On November 7, Schenkein sold 27,687 shares of the company's Class A common stock at an average price of $127.55 per share, amounting to a total transaction value of approximately $3.53 million. This sale was part of a pre-established 10b5-1 trading plan.
In a related transaction, Schenkein exercised stock options to acquire the same number of shares at a price of $5.413 per share, totaling approximately $149,869. Following these transactions, Schenkein retains direct ownership of 693,953 shares of Trade Desk.
In other recent news, The Trade Desk has reported significant growth in Q3 2024, with a 27% year-over-year revenue increase to $628 million, largely driven by its Connected TV (CTV) advertising growth. The company's adjusted EBITDA for the quarter was approximately $257 million, accounting for 41% of the revenue, and free cash flow was reported at $222 million. Loop Capital has maintained a positive outlook on The Trade Desk, keeping a Buy rating and increasing the price target to $145.00, citing the company's strong performance and potential for growth through increased penetration of advertising budgets. BMO Capital Markets has also maintained an Outperform rating on The Trade Desk and raised the stock's price target to $125, highlighting The Trade Desk's potential to capitalize on disruptions in Google (NASDAQ:GOOGL)'s advertising technology business due to regulatory pressures. Moving forward, The Trade Desk projects Q4 revenue of at least $756 million, indicating a 25% growth year-over-year, and an adjusted EBITDA of approximately $363 million. This growth is expected to be supported by The Trade Desk's expanded collaborations with major companies such as Netflix (NASDAQ:NFLX), Spotify (NYSE:SPOT), Disney (NYSE:DIS), Walmart (NYSE:WMT), and LG among others. Despite the positive outlook, both Loop Capital and BMO Capital have noted potential regulatory actions addressing Google's dominance in adtech as a potential benefit to The Trade Desk.
InvestingPro Insights
The recent stock transaction by Trade Desk's CFO Laura Schenkein comes at a time when the company is showing strong financial performance and market positioning. According to InvestingPro data, Trade Desk boasts a market capitalization of $64.76 billion, reflecting its significant presence in the digital advertising technology sector.
Trade Desk's impressive revenue growth is particularly noteworthy. The company reported a 27.32% increase in quarterly revenue as of Q3 2024, with total revenue reaching $2.31 billion over the last twelve months. This robust growth aligns with an InvestingPro Tip indicating that net income is expected to grow this year, suggesting a positive outlook for the company's financial performance.
The company's strong market position is further underscored by its gross profit margin of 81.06%, which an InvestingPro Tip describes as "impressive." This high margin reflects Trade Desk's efficiency in managing costs and generating profit from its revenue.
It's worth noting that Trade Desk is trading near its 52-week high, with a price that is 98.91% of its peak. This performance is part of a broader trend of strong returns, as evidenced by the company's 106.74% price total return over the past year.
While these metrics paint a positive picture, investors should also consider that Trade Desk is trading at a high P/E ratio of 207.93, which may indicate that the stock is priced at a premium relative to its earnings. This high valuation multiple is highlighted in several InvestingPro Tips, suggesting that potential investors should carefully weigh the company's growth prospects against its current market valuation.
For those interested in a more comprehensive analysis, InvestingPro offers 19 additional tips for Trade Desk, providing a deeper insight into the company's financial health and market position.
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