Trade Desk (NASDAQ:TTD) Stock Price Up 12.3% - Time to Buy?

Key Points

• Trade Desk shares jumped 12.3% in Monday mid-day trading to about $14.52, with buyers returning ahead of the company’s earnings report; trading volume was 67% below its average.
• The upcoming report is a key test after the company missed its last-quarter revenue and EPS estimates. Its third-quarter revenue guidance of at least $650 million was about 12% below the year-earlier quarter, and analysts remain cautious about a recovery.
• Analyst sentiment is weak: MarketBeat reports a consensus “Reduce” rating and an average price target of $18.16, with 26 analysts rating the stock Hold and nine rating it Sell.

Shares of The Trade Desk (NASDAQ:TTD - Get Free Report) were up 12.3% during mid-day trading on Monday. The stock traded as high as $14.34 and last traded at $14.5210. 6,592,118 shares traded hands during trading, a decline of 67% from the average session volume of 19,795,355 shares. The stock had previously closed at $12.93.

Trade Desk News Roundup

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

• Positive Sentiment: Buyers are returning to the beaten-down ad-tech stock ahead of the earnings catalyst, with technical trading also cited as a factor. Article: What's Going On With The Trade Desk Stock Monday?
• Neutral Sentiment: The quarterly report is a key test for TTD after a severe decline, and the market will look for evidence that growth and investor confidence can stabilize. Article: Trade Desk's ‘Lost Year' Won't Be Rescued by Earnings, Say Analysts
• Negative Sentiment: Expectations remain cautious: analysts quoted by Barron’s say earnings may not turn around what they characterize as a lost year. The company also missed its own second-quarter revenue forecast, while its third-quarter guidance called for at least $650 million—about 12% below the year-earlier quarter. Article: The Trade Desk Stock Has Lost About 89% Since the End of 2024. Its Nov. 9 Report Is the Next Test.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on TTD. Rosenblatt Securities cut their price objective on Trade Desk from $24.00 to $12.00 and set a "neutral" rating for the company in a report on Friday, August 7th. Truist Financial set a $16.00 target price on Trade Desk and gave the stock a "hold" rating in a report on Friday, August 7th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $15.00 price target on shares of Trade Desk in a research report on Wednesday, September 9th. Weiss Ratings reissued a "sell (d)" rating on shares of Trade Desk in a report on Friday, September 11th. Finally, Guggenheim reissued a "neutral" rating and issued a $13.00 price target (up from $12.00) on shares of Trade Desk in a report on Friday, September 18th. Four investment analysts have rated the stock with a Buy rating, twenty-six have given a Hold rating and nine have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $18.16.

Trade Desk Price Performance

The firm has a market capitalization of $7.05 billion, a PE ratio of 17.77, a P/E/G ratio of 1.40 and a beta of 0.98. The firm has a fifty day moving average price of $13.06 and a 200 day moving average price of $19.62.

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 for the quarter, missing analysts' consensus estimates of $0.40 by ($0.06). The company had revenue of $715.06 million during the quarter, compared to analysts' expectations of $752.41 million. Trade Desk had a return on equity of 16.09% and a net margin of 13.61%. The company's revenue for the quarter was up 3.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.41 EPS. On average, sell-side analysts expect that The Trade Desk will post 0.52 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in TTD. Tema ETFs LLC boosted its holdings in shares of Trade Desk by 9.5% during the 2nd quarter. Tema ETFs LLC now owns 8,360 shares of the technology company's stock worth $151,000 after buying an additional 725 shares during the period. Sunbelt Securities Inc. raised its holdings in Trade Desk by 4.1% in the 1st quarter. Sunbelt Securities Inc. now owns 24,976 shares of the technology company's stock worth $567,000 after acquiring an additional 983 shares during the period. EverSource Wealth Advisors LLC raised its holdings in Trade Desk by 159.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,031 shares of the technology company's stock worth $46,000 after acquiring an additional 1,247 shares during the period. New Mexico Educational Retirement Board raised its holdings in Trade Desk by 6.3% in the 2nd quarter. New Mexico Educational Retirement Board now owns 21,900 shares of the technology company's stock worth $396,000 after acquiring an additional 1,300 shares during the period. Finally, Chicago Partners Investment Group LLC lifted its position in Trade Desk by 13.4% during the 1st quarter. Chicago Partners Investment Group LLC now owns 12,707 shares of the technology company's stock worth $299,000 after acquiring an additional 1,498 shares during the last quarter. 67.77% of the stock is currently owned by institutional investors and hedge funds.

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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