Trade Desk (NASDAQ:TTD) Stock Price Down 38.8% Following Weak Earnings

Key Points

• Trade Desk's stock price plummeted 38.8% after reporting weaker-than-expected earnings per share of $0.41, missing the consensus estimate of $0.42.
• Despite the earnings miss, Trade Desk's quarterly revenue increased by 18.7% year-over-year, reaching $694.04 million, exceeding analysts' expectations of $686 million.
• Analyst ratings remain mixed, with a consensus rating of "Moderate Buy" and a target price averaging $93.33, suggesting potential for recovery despite current volatility.

The Trade Desk (NASDAQ:TTD - Get Free Report) shares fell 38.8% during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $53.82 and last traded at $54.09. 47,267,839 shares changed hands during trading, an increase of 355% from the average session volume of 10,382,350 shares. The stock had previously closed at $88.33.

The technology company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.42 by ($0.01). The company had revenue of $694.04 million for the quarter, compared to analysts' expectations of $686.00 million. Trade Desk had a net margin of 16.04% and a return on equity of 15.41%. Trade Desk's quarterly revenue was up 18.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.39 earnings per share.

Analyst Ratings Changes

Several brokerages recently weighed in on TTD. Citigroup reaffirmed a "neutral" rating and issued a $65.00 target price on shares of Trade Desk in a report on Friday. Truist Financial upped their price objective on Trade Desk from $95.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. DA Davidson decreased their target price on Trade Desk from $103.00 to $92.00 and set a "buy" rating on the stock in a research note on Friday, May 9th. UBS Group reissued a "buy" rating and issued a $105.00 price target (up from $80.00) on shares of Trade Desk in a report on Wednesday, July 16th. Finally, HSBC set a $75.00 price objective on shares of Trade Desk and gave the company a "buy" rating in a report on Wednesday, April 23rd. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and twenty-four have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $93.33.

Insider Activity

In related news, Director David B. Wells sold 28,638 shares of the firm's stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $79.88, for a total transaction of $2,287,603.44. Following the completion of the sale, the director directly owned 66,985 shares of the company's stock, valued at approximately $5,350,761.80. This trade represents a 29.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jeffrey Terry Green sold 26,684 shares of the business's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $80.03, for a total value of $2,135,520.52. Following the transaction, the chief executive officer owned 17,018 shares of the company's stock, valued at approximately $1,361,950.54. The trade was a 61.06% decrease in their position. The disclosure for this sale can be found here. 10.00% of the stock is owned by company insiders.

Institutional Trading of Trade Desk

Large investors have recently made changes to their positions in the stock. Brighton Jones LLC lifted its holdings in Trade Desk by 3.8% during the 4th quarter. Brighton Jones LLC now owns 4,586 shares of the technology company's stock valued at $539,000 after buying an additional 169 shares in the last quarter. FMR LLC increased its position in shares of Trade Desk by 44.8% during the fourth quarter. FMR LLC now owns 3,788,285 shares of the technology company's stock worth $445,237,000 after acquiring an additional 1,172,082 shares during the period. Cerity Partners LLC raised its stake in shares of Trade Desk by 2.1% during the fourth quarter. Cerity Partners LLC now owns 75,123 shares of the technology company's stock valued at $8,681,000 after acquiring an additional 1,559 shares in the last quarter. Bank of Nova Scotia boosted its holdings in shares of Trade Desk by 1,112.2% in the fourth quarter. Bank of Nova Scotia now owns 84,989 shares of the technology company's stock valued at $9,989,000 after purchasing an additional 77,978 shares during the period. Finally, Bessemer Group Inc. grew its stake in Trade Desk by 3.2% in the fourth quarter. Bessemer Group Inc. now owns 8,119 shares of the technology company's stock worth $955,000 after purchasing an additional 251 shares in the last quarter. 67.77% of the stock is owned by hedge funds and other institutional investors.

Trade Desk Stock Down 39.6%

The firm has a 50 day moving average of $76.70 and a 200-day moving average of $73.84. The company has a market cap of $26.24 billion, a P/E ratio of 65.11, a PEG ratio of 4.07 and a beta of 1.37.

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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