VENTURA, CA – Jeffrey Terry Green, President and CEO of Trade Desk, Inc. (NASDAQ: ), a leading technology company specializing in data-driven digital advertising, has sold a significant portion of the company’s stock, according to a new filing. Over the course of two days, Green sold shares totaling more than $43 million.
The transactions, which took place on September 25 and 26, included the sale of Trade Desk Class A Common Stock at prices ranging from $108.87 to $111.72. The total value of the shares Green sold was approximately $43,964,293. The sale was made under a 10b5-1 trading plan, which allows company insiders to set a predetermined schedule for selling shares when they do not have material non-public information.
In addition to the sale, Green also exercised options to acquire 42,150 shares of Class A Common Stock at $68.29 per share, for a total of $2,878,423. The transaction was part of an organized stock trading plan and was reported in compliance with SEC regulations.
Investors often monitor insider transactions because they provide insight into an executive’s perspective on the value of a company’s stock. In this case, the sale and exercise of Green options is part of a structured trading plan, which usually aims to diversify the insider’s investment portfolio over time.
Green continues to hold a substantial amount of shares indirectly through the Jeff Green Trust, as well as the Jeff T. Green Family Foundation, maintaining a significant stake in the company he leads. The trust and foundation are reported as holding shares, indicating Green’s continued interest in the company’s performance.
Trade Desk, Inc. remains a key player in the digital advertising space, with a platform that enables buyers to manage data-driven digital advertising campaigns across multiple formats, including display, video, and social, across multiple devices.
Investors and stakeholders of Trade Desk, Inc. expect to see how this new insider transaction may affect the company’s stock performance in the coming weeks.
In other recent news, The Trade Desk reported a 26% increase in Q2 sales and an improved EBITDA margin of 41%, predicting Q3 revenue of $618 million and adjusted EBITDA of approximately $248 million. BofA Securities maintains a Buy rating on The Trade Desk, expecting the company’s Q3 results to meet or exceed previously issued guidance. MoffettNathanson initiated coverage with a Neutral rating, recognizing the Trade Desk’s strong position in the shift from traditional TV advertising to connected TV. In contrast, Baird maintained its Outperform rating, underscoring the company’s solid stance in the digital advertising industry.
Cantor Fitzgerald also initiated coverage with a Neutral rating, indicating growing uncertainty. Trade Desk’s ongoing partnership with Netflix (NASDAQ:) will be an important contributor to the company’s business in 2025 or 2026. Piper Sandler noted an upward revision in the annual growth rate for the digital advertising market, with streaming now accounting. for 41.4% of the total TV audience in the US This is one of the new developments for The Trade Desk in the digital advertising space.
InvestingPro Insights
To give additional context to Jeffrey Terry Green’s recent stock trades, let’s review some key financial metrics and insights from InvestingPro for Trade Desk, Inc. (NASDAQ:TTD).
Trade Desk’s market capitalization is $53.82 billion, reflecting its significant presence in the digital ad tech sector. The company’s revenue for the last twelve months in Q2 2024 reached $2.17 billion, with a profit growth of 25.53% over the same period. This growth is in line with InvestingPro Tips indicating that net income is expected to grow this year, indicating continued financial strength.
The company’s gross profit margin is particularly significant at 81.23%, which supports another InvestingPro Tip that highlights Trade Desk’s gross profit margin. These high profitability metrics underscore the company’s efficient operations and strong market position in the competitive adtech landscape.
However, investors should note that Trade Desk trades at a high P/E ratio of 211.06, which is reflected in InvestingPro Tips which warns that the company trades at a high multiple of earnings. This value suggests that the market has high growth expectations for Trade Desk, which can explain why Jeffrey Green has chosen to diversify some of the holdings while still maintaining outstanding shares in the company.
It should be noted that the Trading Desk has more cash than debt on its balance sheet, according to another InvestingPro Tip. This strong financial position provides the company with flexibility for future investments and growth initiatives.
For those interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for the Trade Desk, providing a deeper understanding of the company’s financial health and market position.
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