Trade Desk (NASDAQ:TTD) Reaches New 12-Month Low - Should You Sell?

Key Points

• Trade Desk shares fell to a new 52-week low of $12.18, trading below both their 50-day and 200-day moving averages.
• Analysts have sharply reduced expectations: the consensus rating is “Reduce” with a $19.39 target, while several firms issued downgrades and lowered price targets.
• The company missed quarterly estimates, reporting $0.34 in EPS versus $0.40 expected and revenue of $715.06 million versus $752.41 million forecast, though revenue still grew 3% year over year.

The Trade Desk (NASDAQ:TTD - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $12.18 and last traded at $12.34, with a volume of 22786831 shares traded. The stock had previously closed at $12.60.

Analysts Set New Price Targets

TTD has been the topic of several recent analyst reports. HSBC cut Trade Desk from a "hold" rating to a "reduce" rating and set a $10.00 price objective on the stock. in a research note on Monday, August 10th. DA Davidson reiterated a "neutral" rating and issued a $16.00 target price (down from $29.00) on shares of Trade Desk in a report on Monday, August 10th. Needham & Company LLC dropped their price target on shares of Trade Desk from $25.00 to $19.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Raymond James Financial cut shares of Trade Desk from a "market perform" rating to an "underperform" rating in a report on Friday, August 7th. Finally, Zacks Research downgraded shares of Trade Desk from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 11th. Four equities research analysts have rated the stock with a Buy rating, twenty-five have assigned a Hold rating and ten have issued a Sell rating to the stock. According to data from MarketBeat.com, Trade Desk currently has a consensus rating of "Reduce" and a consensus target price of $19.39.

Trade Desk Price Performance

The stock's 50 day simple moving average is $14.90 and its two-hundred day simple moving average is $19.05. The stock has a market capitalization of $5.80 billion, a PE ratio of 14.69, a PEG ratio of 1.46 and a beta of 1.01.

Trade Desk (NASDAQ:TTD - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The technology company reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.06). Trade Desk had a return on equity of 16.09% and a net margin of 13.61%.The company had revenue of $715.06 million for the quarter, compared to analysts' expectations of $752.41 million. During the same quarter in the previous year, the business earned $0.41 EPS. The company's revenue for the quarter was up 3.0% on a year-over-year basis. As a group, equities research analysts predict that The Trade Desk will post 0.49 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Tidal Investments LLC raised its stake in shares of Trade Desk by 148.0% during the 2nd quarter. Tidal Investments LLC now owns 122,121 shares of the technology company's stock valued at $2,208,000 after purchasing an additional 72,888 shares during the period. Archford Capital Strategies LLC bought a new position in Trade Desk in the 2nd quarter worth about $326,000. Integrated Wealth Concepts LLC boosted its stake in Trade Desk by 84.3% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 16,351 shares of the technology company's stock worth $296,000 after purchasing an additional 7,480 shares during the period. RFG Advisory LLC grew its holdings in Trade Desk by 37.9% during the 2nd quarter. RFG Advisory LLC now owns 115,773 shares of the technology company's stock valued at $2,093,000 after buying an additional 31,821 shares in the last quarter. Finally, NewEdge Advisors LLC grew its holdings in Trade Desk by 91.4% during the 2nd quarter. NewEdge Advisors LLC now owns 72,221 shares of the technology company's stock valued at $1,306,000 after buying an additional 34,484 shares in the last quarter. 67.77% of the stock is owned by institutional investors.

Trade Desk Company Profile

The Trade Desk, Inc is a technology company that provides a self-service, cloud-based platform for digital advertising. Its platform enables advertising agencies and brands to plan, purchase, optimize and measure data-driven advertising campaigns across multiple channels and devices.

The company's platform supports programmatic buying for display, video, connected television, audio, native and other forms of digital media. Its services are designed to help advertisers use audience data, automation and analytics to reach targeted consumers while managing campaigns across a range of publishers and media environments.

The Trade Desk was founded in 2009 by Jeff Green and Dave Pickles.

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