Take off with The Trade Desk Inc. (TTD): Get ready for trading

The Trade Desk Inc. (NASDAQ: TTD) stock jumped 0.91% on Tuesday to $47.62 against a previous-day closing price of $47.19. With 3.92 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.77 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $47.89 whereas the lowest price it dropped to was $45.82. The 52-week range on TTD shows that it touched its highest point at $86.88 and its lowest point at $39.00 during that stretch. It currently has a 1-year price target of $62.02. Beta for the stock currently stands at 1.79.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TTD was up-trending over the past week, with a rise of 1.17%, but this was up by 2.25% over a month. Three-month performance dropped to -16.35% while six-month performance rose 2.28%. The stock lost -19.90% in the past year, while it has gained 6.22% so far this year. A look at the trailing 12-month EPS for TTD yields -0.02 with Next year EPS estimates of 1.07. For the next quarter, that number is 0.36. This implies an EPS growth rate of -44.10% for this year and 3.90% for next year. EPS is expected to grow by 24.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 43.30%.

Float and Shares Shorts:

At present, 487.96 million TTD shares are outstanding with a float of 441.17 million shares on hand for trading. On Oct 13, 2022, short shares totaled 15.08 million, which was 3.09% higher than short shares on Sep 14, 2022. In addition to Mr. Jeffrey Terry Green as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. David R. Pickles serves as its Founder, CTO & Director.


Institutional Ownership:

Through their ownership of 77.75% of TTD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.01% of TTD, in contrast to 32.62% held by mutual funds. Shares owned by individuals account for 2.25%. As the largest shareholder in TTD with 10.02% of the stake, Baillie Gifford & Co. holds 44,636,860 shares worth 44,636,860. A second-largest stockholder of TTD, The Vanguard Group, Inc., holds 38,457,652 shares, controlling over 8.64% of the firm’s shares. Morgan Stanley Investment Managem is the third largest shareholder in TTD, holding 32,317,676 shares or 7.26% stake. With a 3.04% stake in TTD, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 13,548,648 shares are owned by the mutual fund manager. The Vanguard US Growth Fund, which owns about 2.54% of TTD stock, is the second-largest Mutual Fund holder. It holds 11,330,081 shares valued at 507.93 million. Vanguard Mid Cap Index Fund holds 2.33% of the stake in TTD, owning 10,372,752 shares worth 465.01 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TTD since 27 analysts follow the stock currently. There are 16 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TTD analysts setting a high price target of $90.00 and a low target of $27.00, the average target price over the next 12 months is $59.19. Based on these targets, TTD could surge 89.0% to reach the target high and fall by -43.3% to reach the target low. Reaching the average price target will result in a growth of 24.3% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TTD will report FY 2022 earnings on 02/14/2024. Analysts have provided yearly estimates in a range of $1.32 being high and $0.98 being low. For TTD, this leads to a yearly average estimate of $1.04. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Trade Desk Inc. surprised analysts by $0.03 when it reported $0.26 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.40 and the low estimate is $0.25. The average estimate for the next quarter is thus $0.35.

Summary of Insider Activity:

Insiders traded TTD stock several times over the past three months with 1 Buys and 14 Sells. In these transactions, 210,000 shares were bought while 257,380 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 69 over the past year. The total number of shares bought during that period was 643,524 while 492,678 shares were sold.

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