Investors Purchase High Volume of Trade Desk Call Options (NASDAQ:TTD)

Key Points

• Investors have shown significant interest in Trade Desk, acquiring 124,081 call options, which marks a 58% increase from typical volumes.
• The company's stock increased by 5.3% to reach $49.64, with over 20 million shares traded, well above the average volume of 12 million shares.
• Trade Desk's quarterly earnings showed a revenue increase of 18.7% year-over-year, despite the EPS of $0.18 falling short of analysts' estimates of $0.42.

The Trade Desk (NASDAQ:TTD - Get Free Report) was the recipient of unusually large options trading on Monday. Stock investors acquired 124,081 call options on the company. This represents an increase of 58% compared to the typical daily volume of 78,602 call options.

Trade Desk Stock Up 5.3%

Trade Desk stock traded up $2.50 during midday trading on Monday, reaching $49.64. 20,998,851 shares of the stock traded hands, compared to its average volume of 12,113,094. The stock's fifty day moving average is $60.43 and its 200-day moving average is $63.08. Trade Desk has a 12 month low of $42.96 and a 12 month high of $141.53. The stock has a market cap of $24.27 billion, a P/E ratio of 59.81, a PEG ratio of 2.45 and a beta of 1.36.

Trade Desk (NASDAQ:TTD - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The technology company reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.24). Trade Desk had a net margin of 15.57% and a return on equity of 15.19%. The firm had revenue of $694.04 million for the quarter, compared to the consensus estimate of $686.00 million. During the same period in the previous year, the company posted $0.39 earnings per share. Trade Desk's quarterly revenue was up 18.7% on a year-over-year basis. Trade Desk has set its Q3 2025 guidance at EPS. On average, equities analysts predict that Trade Desk will post 1.06 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms recently commented on TTD. Stifel Nicolaus reduced their price objective on Trade Desk from $95.00 to $90.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Scotiabank reduced their price objective on Trade Desk from $83.00 to $60.00 and set a "sector perform" rating for the company in a research report on Friday, August 8th. Guggenheim set a $55.00 price objective on Trade Desk and gave the company a "buy" rating in a research report on Monday. HSBC reiterated a "hold" rating and set a $56.00 price objective on shares of Trade Desk in a research report on Monday, August 11th. Finally, Evercore ISI raised Trade Desk from an "in-line" rating to an "outperform" rating and set a $90.00 price target for the company in a report on Friday, June 27th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $86.15.

Insider Buying and Selling

In other news, insider Jay R. Grant sold 51,290 shares of the business's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $91.18, for a total value of $4,676,622.20. Following the completion of the transaction, the insider owned 218,246 shares in the company, valued at $19,899,670.28. The trade was a 19.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Andrea Lee Cunningham sold 1,403 shares of the business's stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $48.20, for a total value of $67,624.60. Following the completion of the transaction, the director owned 5,035 shares of the company's stock, valued at $242,687. This represents a 21.79% decrease in their position. The disclosure for this sale can be found here. 10.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Trade Desk

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GatePass Capital LLC purchased a new stake in Trade Desk during the second quarter valued at approximately $219,000. Arthedge Capital Management LLC raised its position in Trade Desk by 60.8% during the second quarter. Arthedge Capital Management LLC now owns 243,300 shares of the technology company's stock valued at $17,515,000 after purchasing an additional 92,000 shares during the period. Centaurus Financial Inc. raised its position in Trade Desk by 7.7% during the second quarter. Centaurus Financial Inc. now owns 6,092 shares of the technology company's stock valued at $439,000 after purchasing an additional 433 shares during the period. Nautilus Advisors LLC purchased a new stake in Trade Desk during the second quarter valued at approximately $384,000. Finally, B. Riley Wealth Advisors Inc. purchased a new stake in Trade Desk during the second quarter valued at approximately $1,146,000. 67.77% of the stock is currently owned by hedge funds and other institutional investors.

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.

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