Stock Traders Buy High Volume of Call Options on Trade Desk (NASDAQ:TTD)

Key Points

• Trade Desk saw unusually heavy options activity, with investors buying 61,553 call options—about 20% above its average daily call volume.
• Quarterly EPS of $0.33 and revenue of about $736 million beat analyst estimates, and the company forecast fourth-quarter revenue above consensus. However, revenue was down 0.5% year over year, its first contraction in years.
• Analyst views remain cautious overall: 26 analysts rate the stock Hold and nine rate it Sell, versus four Buy ratings; MarketBeat reports an average rating of Reduce.

The Trade Desk (NASDAQ:TTD - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors acquired 61,553 call options on the company. This represents an increase of approximately 20% compared to the average daily volume of 51,424 call options.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Wolfe Research reaffirmed an "outperform" rating and set a $16.00 price target on shares of Trade Desk in a report on Friday, August 7th. Cannonball Research downgraded shares of Trade Desk from a "strong-buy" rating to a "neutral" rating and set a $15.00 price target for the company. in a research report on Friday, August 7th. HSBC cut shares of Trade Desk from a "hold" rating to a "reduce" rating and set a $10.00 target price for the company. in a research report on Monday, August 10th. Scotiabank raised their target price on shares of Trade Desk from $12.00 to $15.00 and gave the stock a "sector perform" rating in a research report on Tuesday. Finally, Truist Financial set a $17.00 price objective on Trade Desk and gave the stock a "hold" rating in a report on Tuesday. Four investment analysts have rated the stock with a Buy rating, twenty-six have assigned a Hold rating and nine have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $18.58.

Trade Desk News Roundup

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.33 per share and revenue was about $736 million, topping analyst expectations. The company forecast fourth-quarter revenue of $755 million, above the roughly $692 million consensus estimate. Benzinga: What's Going On With Trade Desk Stock Tuesday?
• Positive Sentiment: Management expanded its share-repurchase authorization, while a planned 15% workforce reduction is expected to generate more than $100 million in gross savings in 2027. Investors may also see AI products and connected-TV opportunities as potential growth drivers. The Motley Fool: Three Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analyst actions were cautious overall: Needham reaffirmed its Buy rating and $19 target, while RBC and Guggenheim raised targets but maintained sector-perform or neutral ratings. Wedbush kept its neutral rating and $15 target.
• Negative Sentiment: Revenue fell 0.5% year over year—the first contraction in years—and management acknowledged growth remains below its desired level. Commentary about discounts, layoffs and competitive pressure raises questions about how sustainable the rebound will be. 24/7 Wall St.: Revenue Shrunk for the First Time in Years

Institutional Investors Weigh In On Trade Desk

Large investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp bought a new position in shares of Trade Desk during the 2nd quarter valued at approximately $39,750,000. Renaissance Technologies LLC increased its holdings in Trade Desk by 59.0% in the 1st quarter. Renaissance Technologies LLC now owns 5,440,541 shares of the technology company's stock worth $123,446,000 after acquiring an additional 2,018,525 shares during the last quarter. Bank of Nova Scotia increased its holdings in Trade Desk by 1,913.4% in the 1st quarter. Bank of Nova Scotia now owns 1,394,787 shares of the technology company's stock worth $31,648,000 after acquiring an additional 1,325,513 shares during the last quarter. Quantinno Capital Management LP raised its stake in Trade Desk by 330.0% in the 1st quarter. Quantinno Capital Management LP now owns 1,496,748 shares of the technology company's stock valued at $33,961,000 after acquiring an additional 1,148,680 shares during the period. Finally, Bank of America Corp DE raised its stake in Trade Desk by 33.5% in the 1st quarter. Bank of America Corp DE now owns 4,548,894 shares of the technology company's stock valued at $103,214,000 after acquiring an additional 1,141,704 shares during the period. Institutional investors own 67.77% of the company's stock.

Trade Desk Price Performance

Shares of TTD traded up $0.36 during trading hours on Tuesday, reaching $15.29. 34,236,819 shares of the company's stock traded hands, compared to its average volume of 20,282,328. Trade Desk has a twelve month low of $11.62 and a twelve month high of $45.50. The firm has a market capitalization of $7.18 billion, a price-to-earnings ratio of 18.17, a P/E/G ratio of 1.43 and a beta of 0.98. The business's fifty day simple moving average is $13.09 and its two-hundred day simple moving average is $19.52.

Trade Desk (NASDAQ:TTD - Get Free Report) last released its quarterly earnings data on Monday, November 9th. The technology company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.29. Trade Desk had a return on equity of 16.09% and a net margin of 13.61%. The business had revenue of $735.97 million during the quarter, compared to analyst estimates of $650.93 million. During the same period last year, the company posted $0.45 EPS. The company's revenue was down .5% compared to the same quarter last year. On average, equities research analysts expect that Trade Desk will post 0.52 EPS for the current year.

About Trade Desk

The Trade Desk, Inc provides a technology platform that helps advertisers and advertising agencies plan, buy, and measure digital advertising. Its self-service platform uses automated, data-driven tools to help clients purchase advertising inventory across channels such as connected TV, mobile, audio, and display.

The company also offers tools for campaign management, audience targeting, measurement, and access to data and advertising inventory. Its platform is designed to help clients manage campaigns across multiple media channels and publishers.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk serves clients in markets around the world.

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