Trade Desk (NASDAQ:TTD) Shares Gap Down - Should You Sell?

Key Points

• Trade Desk's stock gapped down from a previous closing price of $45.54 to an opening price of $44.00, trading at $45.30 at the latest session with a volume of 4,335,790 shares.
• Analysts have lowered their price targets for Trade Desk, with BMO Capital Markets decreasing it from $115.00 to $98.00, while Citigroup set a new target at $65.00, contributing to a consensus rating of "Hold" with a target price of $87.67.
• Insider selling was noted, with Jay R. Grant selling 51,290 shares at an average price of $91.18, resulting in a 19.03% decrease in their ownership stake in the company.

The Trade Desk (NASDAQ:TTD - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $45.54, but opened at $44.00. Trade Desk shares last traded at $45.30, with a volume of 4,335,790 shares traded.

Analyst Ratings Changes

Several research analysts have recently commented on TTD shares. BMO Capital Markets decreased their price objective on Trade Desk from $115.00 to $98.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Citigroup reaffirmed a "neutral" rating and issued a $65.00 price objective (down previously from $90.00) on shares of Trade Desk in a research note on Friday, August 8th. Royal Bank Of Canada decreased their price objective on Trade Desk from $100.00 to $90.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Wedbush reissued an "outperform" rating and set a $86.00 target price on shares of Trade Desk in a research note on Tuesday, July 15th. Finally, Needham & Company LLC reissued a "buy" rating and set a $84.00 target price on shares of Trade Desk in a research note on Monday, September 8th. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $87.67.

Trade Desk Stock Performance

The stock has a fifty day moving average of $66.19 and a 200-day moving average of $64.15. The company has a market cap of $22.52 billion, a PE ratio of 55.56, a PEG ratio of 2.32 and a beta of 1.36.

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

Insider Buying and Selling at Trade Desk

In related news, insider Jay R. Grant sold 51,290 shares of the company's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $91.18, for a total transaction of $4,676,622.20. Following the completion of the sale, the insider directly owned 218,246 shares in the company, valued at $19,899,670.28. This represents a 19.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Andrea Lee Cunningham sold 1,403 shares of the company's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $48.20, for a total value of $67,624.60. Following the transaction, the director directly owned 5,035 shares in the company, valued at $242,687. This represents a 21.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. 10.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in TTD. Brown Advisory Inc. grew its holdings in Trade Desk by 198.4% during the first quarter. Brown Advisory Inc. now owns 8,102,294 shares of the technology company's stock worth $443,358,000 after acquiring an additional 5,387,339 shares during the period. Geode Capital Management LLC boosted its position in Trade Desk by 52.1% during the second quarter. Geode Capital Management LLC now owns 12,314,817 shares of the technology company's stock worth $884,860,000 after purchasing an additional 4,218,975 shares in the last quarter. Nuveen LLC purchased a new position in Trade Desk during the first quarter worth approximately $191,935,000. Norges Bank purchased a new position in Trade Desk during the second quarter worth approximately $197,362,000. Finally, Viking Global Investors LP purchased a new position in Trade Desk during the second quarter worth approximately $192,524,000. 67.77% of the stock is owned by institutional investors and hedge funds.

Trade Desk Company Profile

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.

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