Rajaram Gokul, a director at Trade Desk, Inc. (NASDAQ:TTD), recently sold shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The transaction, which took place on October 21, involved the sale of 1,355 shares at a price of $117.89 per share, totaling approximately $159,740. Following this transaction, Gokul retains 28,636 shares in the company. The sales were conducted under a pre-established 10b5-1 trading plan, which was adopted on March 15, 2024.
In other recent news, The Trade Desk has seen a series of significant developments. Citi has maintained a positive stance on the company, raising its stock price target from $115.00 to $140.00, based on the company's expected growth in the Connected TV (CTV) and Retail Media sectors. KeyBanc also increased its stock price target to $130, anticipating the company's revenue to meet or surpass the projected $623 million.
Jefferies, HSBC, and Truist Securities followed suit, raising their price targets to $132, $127.30, and $120, respectively, reflecting confidence in The Trade Desk's growth trajectory. These firms highlighted the company's strong position in the digital advertising market and its potential to capitalize on advancements in CTV and retail media.
The Trade Desk's recent financial performance has also been notable, with a 26% increase in Q2 sales and an improved adjusted EBITDA margin of 41%. The company has projected a Q3 revenue of $618 million and an expected adjusted EBITDA of around $248 million. These are recent developments that investors in The Trade Desk will likely monitor closely, given the positive outlook and the raised price targets by multiple analyst firms.
InvestingPro Insights
The recent insider sale by Rajaram Gokul at Trade Desk, Inc. (NASDAQ:TTD) comes at a time when the company's stock is trading near its 52-week high, with InvestingPro data showing the price at 97.01% of its peak. This aligns with an InvestingPro Tip indicating that TTD is "Trading near 52-week high," which could suggest that the director's sale might be timed to capitalize on the stock's strong performance.
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 another tip stating that "Liquid assets exceed short term obligations," potentially providing reassurance to investors despite the insider sale.
The company's growth trajectory remains positive, with revenue growth of 25.53% over the last twelve months as of Q2 2024, according to InvestingPro data. Additionally, an InvestingPro Tip notes that "Net income is expected to grow this year," suggesting continued financial improvement.
However, investors should be aware that TTD is trading at elevated valuation multiples. The P/E Ratio stands at 225.6, which is quite high and reflected in the InvestingPro Tip stating that the company is "Trading at a high earnings multiple." This valuation could be a factor in the director's decision to sell shares.
For readers interested in a more comprehensive analysis, InvestingPro offers 19 additional tips for Trade Desk, providing a deeper understanding of the company's financial position and market performance.
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