Disclosed in a recent SEC filing on May 29, Cunningham, Board Member at Trade Desk TTD, made a noteworthy transaction involving the exercise of company stock options.
What Happened: The latest Form 4 filing on Thursday with the U.S. Securities and Exchange Commission uncovered Cunningham, Board Member at Trade Desk, exercising stock options for 0 shares of TTD. The total transaction was valued at $0.
Currently, Trade Desk shares are trading down 0.57%, priced at $74.45 during Friday’s morning. This values Cunningham’s 0 shares at $0.
About Trade Desk
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.
Financial Milestones: Trade Desk’s Journey
Revenue Growth: Trade Desk displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 25.4%. This indicates a notable 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.
Exploring Profitability:
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Gross Margin: The company maintains a high gross margin of 76.81%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Trade Desk’s EPS reflects a decline, falling below the industry average with a current EPS of 0.1.
Debt Management: With a below-average debt-to-equity ratio of 0.12, Trade Desk adopts a prudent financial strategy, indicating a balanced approach to debt management.
Market Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 91.32 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 14.66 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 65.22 positions the company as being more valued compared to industry benchmarks.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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Exploring the Significance of Insider Trading
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
