Fernbridge Capital Management LP Makes New Investment in The Trade Desk $TTD

Key Points

• Fernbridge Capital Management bought 363,775 shares of The Trade Desk in Q2, worth about $26.19 million, making TTD its 20th-largest holding (TTD represents ~1.2% of Fernbridge's portfolio) and leaving Fernbridge with roughly 0.07% ownership of the company.
• The Trade Desk posted a small Q report beat (Q EPS $0.45 vs. $0.44 estimate; revenue $739.4M vs. $719.1M, up 17.7% year-over-year) and its Board approved a $500 million share buyback (up to ~2.1% of shares outstanding).
• Analyst sentiment is mixed after several price-target cuts and downgrades, but the consensus remains a "Moderate Buy" with an average price target of $77.19 (21 Buy, 12 Hold, 3 Sell ratings).

Fernbridge Capital Management LP purchased a new stake in shares of The Trade Desk (NASDAQ:TTD - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 363,775 shares of the technology company's stock, valued at approximately $26,188,000. Trade Desk comprises 1.2% of Fernbridge Capital Management LP's holdings, making the stock its 20th biggest holding. Fernbridge Capital Management LP owned approximately 0.07% of Trade Desk as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of TTD. Cornerstone Wealth Group LLC lifted its stake in Trade Desk by 2.8% in the second quarter. Cornerstone Wealth Group LLC now owns 4,457 shares of the technology company's stock worth $321,000 after acquiring an additional 122 shares during the period. STF Management LP lifted its position in shares of Trade Desk by 2.1% in the 2nd quarter. STF Management LP now owns 6,627 shares of the technology company's stock worth $477,000 after purchasing an additional 136 shares during the period. Mutual Advisors LLC boosted its stake in shares of Trade Desk by 3.5% during the 2nd quarter. Mutual Advisors LLC now owns 4,239 shares of the technology company's stock valued at $305,000 after purchasing an additional 142 shares in the last quarter. Ashton Thomas Securities LLC boosted its stake in shares of Trade Desk by 2.6% during the 1st quarter. Ashton Thomas Securities LLC now owns 5,760 shares of the technology company's stock valued at $315,000 after purchasing an additional 144 shares in the last quarter. Finally, Tradition Wealth Management LLC increased its position in shares of Trade Desk by 2.4% during the first quarter. Tradition Wealth Management LLC now owns 6,349 shares of the technology company's stock valued at $347,000 after buying an additional 150 shares during the period. Hedge funds and other institutional investors own 67.77% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have weighed in on TTD shares. DA Davidson cut their price objective on Trade Desk from $80.00 to $54.00 and set a "buy" rating on the stock in a research report on Monday, November 10th. BTIG Research cut Trade Desk from a "buy" rating to a "neutral" rating in a research note on Friday, August 8th. Jefferies Financial Group cut Trade Desk from a "buy" rating to a "hold" rating and reduced their price target for the stock from $100.00 to $50.00 in a research note on Monday, August 11th. HSBC reissued a "hold" rating and set a $56.00 price objective on shares of Trade Desk in a research report on Monday, August 11th. Finally, Citigroup restated an "outperform" rating on shares of Trade Desk in a report on Tuesday, September 30th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $77.19.

Insider Activity at Trade Desk

In related news, Director Andrea Lee Cunningham sold 1,403 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $48.20, for a total transaction of $67,624.60. Following the completion of the sale, the director owned 5,035 shares of the company's stock, valued at $242,687. This trade represents a 21.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 10.00% of the stock is currently owned by insiders.

Trade Desk Trading Up 1.2%

NASDAQ TTD opened at $39.59 on Monday. The Trade Desk has a 12 month low of $38.22 and a 12 month high of $141.53. The stock's fifty day moving average price is $47.38 and its 200-day moving average price is $60.69. The stock has a market cap of $19.14 billion, a P/E ratio of 45.50, a P/E/G ratio of 1.96 and a beta of 1.07.

Trade Desk (NASDAQ:TTD - Get Free Report) last posted its quarterly earnings results on Thursday, November 6th. The technology company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.01. The firm had revenue of $739.43 million during the quarter, compared to analyst estimates of $719.11 million. Trade Desk had a return on equity of 16.00% and a net margin of 15.72%.Trade Desk's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.41 EPS. Trade Desk has set its Q4 2025 guidance at EPS. As a group, analysts forecast that The Trade Desk will post 1.06 earnings per share for the current fiscal year.

Trade Desk announced that its Board of Directors has approved a stock repurchase plan on Thursday, November 6th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the technology company to repurchase up to 2.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

About Trade Desk

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.

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