Trade Desk (NASDAQ:TTD) Stock Price Down 38.8% After Earnings Miss

The Trade Desk (NASDAQ:TTD)’s stock price traded down 38.8% on Friday following a weaker than expected earnings announcement. The company traded as low as $53.82 and last traded at $54.09. 47,267,839 shares were traded during trading, an increase of 355% from the average session volume of 10,382,350 shares. The stock had previously closed at $88.33.

The technology company reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.01). The company had revenue of $694.04 million during the quarter, compared to analysts’ expectations of $686.00 million. Trade Desk had a net margin of 15.57% and a return on equity of 15.10%. The company’s quarterly revenue was up 18.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.39 earnings per share.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on TTD. Macquarie lifted their target price on Trade Desk from $90.00 to $92.00 and gave the stock an “outperform” rating in a research note on Monday, May 19th. DA Davidson lowered their target price on Trade Desk from $103.00 to $92.00 and set a “buy” rating on the stock in a research note on Friday, May 9th. Guggenheim lowered their target price on Trade Desk from $110.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, May 9th. BMO Capital Markets set a $98.00 target price on Trade Desk and gave the stock an “outperform” rating in a research note on Friday. Finally, Piper Sandler lowered their target price on Trade Desk from $65.00 to $64.00 and set a “neutral” rating on the stock in a research note on Friday. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and twenty-three have given a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $92.18.

Insider Activity at Trade Desk

In other Trade Desk news, CEO Jeffrey Terry Green sold 26,684 shares of the company’s stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $80.03, for a total value of $2,135,520.52. Following the completion of the sale, the chief executive officer owned 17,018 shares of the company’s stock, valued at $1,361,950.54. This represents a 61.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David B. Wells sold 28,638 shares of the business’s stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $79.88, for a total value of $2,287,603.44. Following the completion of the sale, the director owned 66,985 shares of the company’s stock, valued at $5,350,761.80. The trade was a 29.95% decrease in their position. The disclosure for this sale can be found here. 10.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Trade Desk

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Investment Management Corp VA ADV purchased a new stake in shares of Trade Desk in the fourth quarter worth $25,000. Banque Cantonale Vaudoise purchased a new stake in shares of Trade Desk during the first quarter valued at $26,000. Sound Income Strategies LLC boosted its position in shares of Trade Desk by 317.6% during the second quarter. Sound Income Strategies LLC now owns 355 shares of the technology company’s stock valued at $26,000 after buying an additional 270 shares during the last quarter. Cloud Capital Management LLC purchased a new stake in shares of Trade Desk during the first quarter valued at $27,000. Finally, von Borstel & Associates Inc. purchased a new stake in shares of Trade Desk during the first quarter valued at $31,000. 67.77% of the stock is owned by hedge funds and other institutional investors.

Trade Desk Price Performance

The company has a market capitalization of $26.65 billion, a PE ratio of 65.34, a PEG ratio of 4.01 and a beta of 1.37. The firm has a 50-day moving average of $76.31 and a 200 day moving average of $73.35.

Trade Desk Company Profile

The Trade Desk, Inc operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices.