Disclosed in the latest SEC filing, a significant insider purchase on May 29, involves Kathryn E Falberg, Director at Trade Desk TTD.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that Falberg made a notable purchase of 2,873 shares of Trade Desk, valuing at $169,995.
Monitoring the market, Trade Desk‘s shares down by 0.57% at $74.45 during Friday’s morning.
Get to Know Trade Desk Better
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 devices like computers, smartphones, and connected TVs. It uses data in an iterative manner 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, and it generates revenue from fees based on a percentage of what its clients spend on advertising.
Unraveling the Financial Story of Trade Desk
Revenue Growth: Trade Desk’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 25.4%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.
Navigating Financial Profits:
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Gross Margin: With a high gross margin of 76.81%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Trade Desk’s EPS is below the industry average. The company faced challenges with a current EPS of 0.1. This suggests a potential decline in earnings.
Debt Management: Trade Desk’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.12.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 91.32 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 14.66, Trade Desk’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Trade Desk’s EV/EBITDA ratio, surpassing industry averages at 65.22, positions it with an above-average valuation in the market.
Market Capitalization Analysis: With a profound presence, the company’s market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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Delving Into the Significance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Understanding Crucial Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
