Trade Desk (NASDAQ:TTD) Stock Price Down 8.2% on Analyst Downgrade

Key Points

• Trade Desk's stock price dropped 8.2% after Morgan Stanley downgraded it from an overweight to an equal weight rating, with a new price target of $50.00, down from $80.00.
• Insider Jay R. Grant sold 51,290 shares at an average price of $91.18, reducing their stake by 19.03% while corporate insiders now own 10.00% of the company's stock.
• Despite the recent decline, Trade Desk has a consensus rating of "Hold" among analysts, with 20 endorsing a Buy rating and an average target price of $87.67.

Shares of The Trade Desk (NASDAQ:TTD - Get Free Report) were down 8.2% on Wednesday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. Morgan Stanley now has a $50.00 price target on the stock, down from their previous price target of $80.00. Trade Desk traded as low as $48.20 and last traded at $48.11. Approximately 14,997,935 shares traded hands during trading, an increase of 34% from the average daily volume of 11,175,896 shares. The stock had previously closed at $52.40.

A number of other equities analysts have also recently commented on TTD. JMP Securities reaffirmed a "market outperform" rating and issued a $100.00 target price on shares of Trade Desk in a report on Tuesday, June 24th. Arete Research raised shares of Trade Desk to a "strong sell" rating in a report on Monday, July 28th. Bank of America reaffirmed an "underperform" rating and issued a $55.00 target price (down from $130.00) on shares of Trade Desk in a report on Friday, August 8th. Wedbush reiterated an "outperform" rating and issued a $86.00 price objective on shares of Trade Desk in a research report on Tuesday, July 15th. Finally, Scotiabank lowered their price objective on shares of Trade Desk from $83.00 to $60.00 and set a "sector perform" rating on the stock in a research report on Friday, August 8th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Trade Desk presently has an average rating of "Hold" and a consensus price target of $87.67.

Insider Activity at Trade Desk

In other news, insider Jay R. Grant sold 51,290 shares of the company's stock in a transaction 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 transaction, the insider directly owned 218,246 shares of the company's stock, valued at $19,899,670.28. This represents a 19.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 10.00% of the company's stock.

Hedge Funds Weigh In On Trade Desk

Institutional investors and hedge funds have recently made changes to their positions in the stock. Centaurus Financial Inc. raised its stake in shares of Trade Desk by 7.7% during the 2nd quarter. Centaurus Financial Inc. now owns 6,092 shares of the technology company's stock worth $439,000 after buying an additional 433 shares during the last quarter. Nautilus Advisors LLC acquired a new position in shares of Trade Desk during the 2nd quarter worth $384,000. B. Riley Wealth Advisors Inc. acquired a new position in shares of Trade Desk during the 2nd quarter worth $1,146,000. Marex Group plc acquired a new position in shares of Trade Desk during the 2nd quarter worth $693,000. Finally, Advisory Services Network LLC raised its stake in shares of Trade Desk by 3.4% during the 2nd quarter. Advisory Services Network LLC now owns 58,476 shares of the technology company's stock worth $4,210,000 after buying an additional 1,896 shares during the last quarter. 67.77% of the stock is owned by institutional investors and hedge funds.

Trade Desk Trading Down 2.0%

The firm has a market cap of $22.12 billion, a price-to-earnings ratio of 54.51, a P/E/G ratio of 2.37 and a beta of 1.36. The firm has a 50 day moving average price of $67.34 and a 200-day moving average price of $64.63.

Trade Desk (NASDAQ:TTD - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The technology company reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.24). The firm had revenue of $694.04 million for 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 company's quarterly revenue was up 18.7% compared to the same quarter last year. During the same period last year, the firm earned $0.39 EPS. Trade Desk has set its Q3 2025 guidance at EPS. As a group, equities analysts expect that The Trade Desk will post 1.06 earnings per share for the current fiscal year.

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.