Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider move unfolded on April 25, as Schenkein, Chief Financial Officer at Trade Desk (NASDAQ:TTD), reported the acquisition of stock options for 121,684 shares in an SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Schenkein, Chief Financial Officer at Trade Desk, a company in the Communication Services sector, acquired stock options for 121,684 shares of TTD. The options allow Schenkein to buy the company's stock at $81.07 per share.
Trade Desk shares are trading, exhibiting up of 2.27% and priced at $85.23 during Friday's morning. This values Schenkein's 121,684 shares at $506,205.
Delving into Trade Desk's Background The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, and social) on different devices like computers, smartphones, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising.
Financial Insights: Trade Desk Revenue Growth: Trade Desk displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 23.45%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Profitability Metrics:
- Gross Margin: The company excels with a remarkable gross margin of 83.38%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Trade Desk's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.2.
Valuation Overview:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 231.5, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 21.42, Trade Desk's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Trade Desk's EV/EBITDA ratio stands at 140.93, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
The Impact of Insider Transactions on Investments Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
The Insider's Guide to Important Transaction Codes When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Trade Desk's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.