Trade Desk (NASDAQ:TTD) Share Price Breaks Below 50 Day Moving Average - Here's What Happened

Key Points

• Trade Desk shares fell below their 50-day moving average of $13.24, reaching $12.42 before last trading at $12.59 on elevated volume.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with 26 Holds and nine Sells versus four Buys, and an average price target of $18.16.
• The company’s latest quarterly results missed expectations, reporting $0.34 in EPS versus $0.40 forecast and $715.06 million in revenue versus $752.41 million expected, although revenue grew 3% year over year.

The Trade Desk (NASDAQ:TTD - Get Free Report)'s stock price passed below its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $13.24 and traded as low as $12.42. Trade Desk shares last traded at $12.59, with a volume of 9,412,392 shares changing hands.

Analyst Ratings Changes

A number of research firms have weighed in on TTD. Zacks Research upgraded shares of Trade Desk from a "strong sell" rating to a "hold" rating in a research report on Friday, October 9th. Guggenheim restated a "neutral" rating and set a $13.00 price objective (up from $12.00) on shares of Trade Desk in a research report on Friday, September 18th. Weiss Ratings restated a "sell (d)" rating on shares of Trade Desk in a research note on Friday, September 11th. Morgan Stanley set a $13.00 target price on shares of Trade Desk in a research note on Monday, August 10th. Finally, HSBC downgraded shares of Trade Desk from a "hold" rating to a "reduce" rating and set a $10.00 target price for the company. in a report on Monday, August 10th. Four research analysts have rated the stock with a Buy rating, twenty-six have issued a Hold rating and nine have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $18.16.

Trade Desk Stock Down 0.5%

The company has a market capitalization of $5.92 billion, a PE ratio of 14.99, a PEG ratio of 1.41 and a beta of 1.00. The company's 50 day moving average is $13.24 and its two-hundred day moving average is $17.67.

Trade Desk (NASDAQ:TTD - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The technology company reported $0.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.06). Trade Desk had a net margin of 13.61% and a return on equity of 16.09%. The company had revenue of $715.06 million during the quarter, compared to the consensus estimate of $752.41 million. During the same quarter in the prior year, the firm posted $0.41 earnings per share. The business's revenue was up 3.0% on a year-over-year basis. Analysts forecast that The Trade Desk will post 0.51 EPS for the current year.

Institutional Investors Weigh In On Trade Desk

A number of hedge funds have recently made changes to their positions in TTD. Deane Retirement Strategies Inc. bought a new stake in shares of Trade Desk in the 2nd quarter valued at approximately $2,101,000. First Trust Advisors LP increased its position in shares of Trade Desk by 32.1% during the 1st quarter. First Trust Advisors LP now owns 1,448,758 shares of the technology company's stock valued at $32,872,000 after purchasing an additional 351,771 shares during the last quarter. SEB Asset Management AB bought a new position in shares of Trade Desk during the 1st quarter valued at approximately $2,007,000. Tidal Investments LLC increased its position 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 last quarter. Finally, Hsbc Holdings PLC raised its holdings in Trade Desk by 6.1% during the 1st quarter. Hsbc Holdings PLC now owns 1,083,635 shares of the technology company's stock valued at $24,737,000 after buying an additional 62,672 shares during the period. 67.77% of the stock is currently owned by hedge funds and other institutional investors.

About Trade Desk

The Trade Desk, Inc is a technology company that provides a cloud-based platform for digital advertising. Its demand-side platform enables advertisers and advertising agencies to plan, purchase, optimize and measure programmatic campaigns across channels including connected television, display, mobile, audio, native advertising and digital out-of-home media.

The company's platform is designed to help clients use data and automated bidding to reach audiences across websites, applications, streaming services and other digital properties.

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