VENTURA, CA – Jeffrey Terry Green, the President and CEO of Trade Desk, Inc. (NASDAQ:TTD), a leading technology company specializing in data-driven digital advertising, has sold a significant portion of his company stock, according to recent filings. Over the course of two days, Green sold shares totaling over $43 million.
The transactions, which took place on September 25 and 26, involved the sale of Trade Desk Class A Common Stock at prices ranging from $108.87 to $111.72. The total value of the shares sold by Green amounted to approximately $43,964,293. These sales were executed under a 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information.
In addition to the sales, Green also exercised options to acquire 42,150 shares of Class A Common Stock at a price of $68.29 per share, totaling $2,878,423. These transactions are part of a pre-arranged stock trading plan and are reported in compliance with SEC regulations.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's stock value. In this case, Green's sales and option exercises are part of a structured trading plan, which typically aims to diversify an insider's investment portfolio over time.
Green continues to hold a substantial number of shares indirectly through the Jeff Green Trust, as well as the Jeff T. Green Family Foundation, maintaining a significant stake in the company he leads. The trust and foundation are reported as holding shares, indicating Green's ongoing vested interest in the company's performance.
Trade Desk, Inc. remains a key player in the digital advertising space, with its platform enabling buyers to manage data-driven digital advertising campaigns across various formats, including display, video, and social, on a multitude of devices.
Investors and stakeholders of Trade Desk, Inc. can expect to see how these recent insider transactions might influence the company's stock performance in the coming weeks.
In other recent news, The Trade Desk reported a 26% increase in Q2 sales and an improved adjusted EBITDA margin of 41%, forecasting a Q3 revenue of $618 million and an expected adjusted EBITDA of around $248 million. BofA Securities maintained a Buy rating on The Trade Desk, expecting the company's Q3 results to meet or exceed previously issued guidance. MoffettNathanson initiated coverage with a Neutral rating, recognizing The Trade Desk's strong position in the shift from traditional TV advertising to connected TV. In contrast, Baird maintained an Outperform rating, emphasizing the company's solid stance in the digital advertising industry.
Cantor Fitzgerald also initiated coverage with a Neutral rating, pointing out potential growth uncertainties. The Trade Desk's ongoing partnership with Netflix (NASDAQ:NFLX) is projected to become a significant contributor to the company's business by 2025 or 2026. Piper Sandler noted an upward revision in the full-year growth rate for the digital ad market, with streaming now accounting for 41.4% of total TV viewership in the U.S. These are among the recent developments for The Trade Desk in the digital advertising space.
InvestingPro Insights
To provide additional context to Jeffrey Terry Green's recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for Trade Desk, Inc. (NASDAQ:TTD).
Trade Desk's market capitalization stands at an impressive $53.82 billion, reflecting its significant presence in the digital advertising technology sector. The company's revenue for the last twelve months as of Q2 2024 reached $2.17 billion, with a robust revenue growth of 25.53% over the same period. This growth aligns with an InvestingPro Tip indicating that net income is expected to grow this year, suggesting continued financial strength.
The company's gross profit margin is particularly noteworthy at 81.23%, which supports another InvestingPro Tip highlighting Trade Desk's impressive gross profit margins. This high profitability metric underscores the company's efficient operations and strong market position in the competitive adtech landscape.
However, investors should note that Trade Desk is trading at a high P/E ratio of 211.06, which is reflected in an InvestingPro Tip cautioning that the company is trading at a high earnings multiple. This valuation suggests that the market has high growth expectations for Trade Desk, which may explain why Jeffrey Green has chosen to diversify some of his holdings while still maintaining a significant stake in the company.
It's worth mentioning that Trade Desk holds more cash than debt on its balance sheet, according to another InvestingPro Tip. This strong financial position provides the company with flexibility for future investments and growth initiatives.
For those interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for Trade Desk, providing a deeper understanding of the company's financial health and market position.
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