Trade Desk (NASDAQ:TTD) saw its price target reduced from $80.00 to $70.00 by Evercore ISI in a research note released on Friday morning. Despite this adjustment, Evercore maintains an “outperform” rating on the stock of the California-based technology company. This revision comes amidst a broader reassessment of the company’s stock by several analysts.
In recent days, other equity research firms have also provided updates. On Tuesday, Wedbush raised its rating on Trade Desk shares to “hold.” Conversely, KeyCorp increased its price target from $80.00 to $95.00 and classified the stock as “overweight” in a report dated July 17. Meanwhile, Rosenblatt Securities lowered its price objective from $78.00 to $64.00 while still assigning a “buy” rating. Similarly, Stifel Nicolaus reduced its target price from $95.00 to $90.00 with a “buy” recommendation in a report issued on August 8. In a contrasting view, Wells Fargo & Company set a target price of $53.00 on October 6, giving the company an “equal weight” rating.
As of now, a total of 21 analysts have rated Trade Desk with a “buy” rating, while 12 have given it a “hold” rating, and four have issued a “sell” rating. According to MarketBeat.com, the stock currently holds a consensus rating of “hold” with a consensus price target of $79.48.
Financial Performance and Buyback Initiative
In its most recent earnings announcement on November 6, Trade Desk reported earnings of $0.45 per share for the quarter, surpassing analysts’ expectations of $0.44 by a margin of $0.01. The company recorded a return on equity of 15.73% and a net margin of 15.72%. In terms of revenue, Trade Desk generated $739.43 million for the quarter, exceeding analyst estimates of $719.11 million. This represents a 17.7% increase compared to the same period last year, when the company reported earnings of $0.41 per share.
Additionally, Trade Desk announced a stock buyback plan on November 6, authorizing the repurchase of up to $500 million in outstanding shares. This initiative allows the company to reacquire up to 2.1% of its shares through open market purchases, indicating that the board believes the company’s shares are currently undervalued.
Insider Trading Activity
In related news, Andrea Lee Cunningham, a director at Trade Desk, sold 1,403 shares of the company on September 10, at an average price of $48.20, resulting in a total transaction value of $67,624.60. Following the sale, Cunningham holds 5,035 shares, valued at approximately $242,687, marking a 21.79% decrease in her overall ownership. This transaction was filed with the U.S. Securities and Exchange Commission, which is accessible on their official website. Currently, insiders hold 10.00% of the stock.
Institutional Investor Activity
Trade Desk has also seen significant activity among institutional investors. Family Legacy Financial Solutions LLC increased its stake by 163.2% during the third quarter, acquiring an additional 310 shares to reach a total of 500 shares valued at $25,000. Banque Cantonale Vaudoise bought a new stake in the company valued at approximately $26,000 in the first quarter. Sound Income Strategies LLC boosted its stake by 317.6% in the second quarter, owning 355 shares worth $26,000 after purchasing an additional 270 shares.
Other institutions, including Versant Capital Management Inc. and Root Financial Partners LLC, have also increased their holdings, with Versant Capital’s stake rising by 175.8% in the third quarter. Currently, institutional investors own 67.77% of Trade Desk’s stock.
Trade Desk, Inc. operates as a technology company both in the United States and internationally. It provides a self-service cloud-based platform that enables buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various formats and channels. These include video, display, audio, digital-out-of-home, native, and social advertising on devices such as computers, mobile phones, televisions, and streaming devices.
For those interested in staying updated, a daily summary of the latest news and analysts’ ratings for Trade Desk and related companies can be received through MarketBeat.com’s free daily email newsletter.
