Wells Fargo has recently initiated Trade Desk Inc (TTD) stock to Overweight rating, as announced on October 29, 2024, according to Finviz. Earlier, on October 29, 2024, New Street had reduced the stock from a Neutral to Sell, setting a price target of $86. Truist also reiterated Buy rating with a price target of $120. Additionally, Needham reiterated Buy rating on October 1, 2024, with a target price of $125. MoffettNathanson analysts, in their report published on September 23, 2024, also initiated Neutral rating for Trade Desk Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Trade Desk Inc (TTD) Stock Trading Recap
On Friday, Trade Desk Inc (TTD) stock saw a decline, ending the day at $125.13 which represents a decrease of $-7.40 or -5.58% from the prior close of $132.53. The stock opened at $116.11 and touched a low of $116 during the day, reaching a high of $126.95. The volume of shares traded was 13.64 million exceeding the average volume of 2.93 million.
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TTD Stock Performance and Moving Averages
In recent trading, Trade Desk Inc (TTD) stock price has shown some volatility, fluctuating 4.98% over the last five trades and 8.14% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 43.40%, and it has gained 28.95% in the previous three months. Currently, TTD is trading at 4.07%, 10.90%, and 32.01% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, TTD, a Technology sector stock, is trading -5.67% below its 52-week high but remains 107.75% above its 52-week low. The Average True Range (ATR) (14 days) of 4.2 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Trade Desk Inc’s Profitability and Valuation Ratios
Trade Desk Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 14.05% and a profit margin of 11.65%, with a gross margin of 43.40%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Trade Desk Inc’s market capitalization stands at $61.68 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 246.9, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 64.69. Additionally, the Price-to-Sales Ratio is 28.36, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 25.57, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 9.45% of Trade Desk Inc (TTD)’s shares, while financial institutions hold 70.39%.
Notable insider trades include Schenkein Laura, Chief Financial Officer at Trade Desk Inc (TTD), who sold 25000 shares on Oct 22 ’24, at $120.43 each, totaling $3.01 million. On Oct 21 ’24, Rajaram Gokul, Director, sold 1355 shares for $117.89 each, amounting to $0.16 million. Additionally, on Oct 09 ’24, Green Jeffrey Terry sold 80649 shares at $115.5 each, generating $9.31 million.
