Trade Desk (NASDAQ:TTD) Cut to "Sell" at Wall Street Zen

Key Points

• Trade Desk has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a shift in analyst sentiment towards the stock.
• The company's recent earnings report revealed a significant miss on EPS estimates, with reported earnings of $0.18 compared to a consensus of $0.42, despite an increase in revenue of 18.7% year-over-year.
• Trade Desk's stock is currently priced at $54.66, showing a 1.3% decline, and analysts have set a consensus target price of $88.58, categorizing the stock as a "Moderate Buy."

Wall Street Zen lowered shares of Trade Desk (NASDAQ:TTD - Free Report) from a hold rating to a sell rating in a research report sent to investors on Monday.

Other research analysts have also recently issued reports about the company. Citigroup restated a "neutral" rating and set a $65.00 price target (down from $90.00) on shares of Trade Desk in a research note on Friday, August 8th. KeyCorp boosted their price objective on Trade Desk from $80.00 to $95.00 and gave the company an "overweight" rating in a report on Thursday, July 17th. Guggenheim lowered their target price on Trade Desk from $110.00 to $90.00 and set a "buy" rating for the company in a report on Friday, May 9th. Stifel Nicolaus dropped their target price 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. Finally, Scotiabank cut their price target on shares of Trade Desk from $83.00 to $60.00 and set a "sector perform" rating on the stock in a research note on Friday, August 8th. Twenty-one investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Trade Desk presently has a consensus rating of "Moderate Buy" and a consensus price target of $88.58.

Trade Desk Stock Down 0.9%

Shares of TTD traded down $0.48 during trading on Monday, reaching $54.18. 7,768,357 shares of the company traded hands, compared to its average volume of 11,215,365. Trade Desk has a twelve month low of $42.96 and a twelve month high of $141.53. The stock has a market cap of $26.49 billion, a PE ratio of 65.28, a price-to-earnings-growth ratio of 2.81 and a beta of 1.36. The stock has a 50-day simple moving average of $70.63 and a 200-day simple moving average of $65.89.

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

Insider Activity at Trade Desk

In related news, insider Jay R. Grant sold 51,290 shares of the company's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $91.18, for a total transaction of $4,676,622.20. Following the sale, the insider directly owned 218,246 shares in the company, valued at approximately $19,899,670.28. This represents a 19.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 10.00% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in TTD. Investment Management Corp VA ADV acquired a new stake in shares of Trade Desk in the 4th quarter valued at $25,000. Sound Income Strategies LLC increased its holdings in Trade Desk by 317.6% in the second quarter. Sound Income Strategies LLC now owns 355 shares of the technology company's stock valued at $26,000 after buying an additional 270 shares during the last quarter. Transce3nd LLC acquired a new stake in Trade Desk in the second quarter valued at $28,000. Twin Peaks Wealth Advisors LLC purchased a new stake in Trade Desk during the 2nd quarter worth about $28,000. Finally, Park Square Financial Group LLC purchased a new stake in Trade Desk during the 4th quarter worth about $47,000. Institutional investors and hedge funds own 67.77% of the company's stock.

About Trade Desk

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.