Trade Desk (NASDAQ:TTD) Stock Price Down 5.9% After Analyst Downgrade

The Trade Desk (NASDAQ:TTD)’s share price dropped 5.9% during mid-day trading on Monday after DA Davidson downgraded the stock from a buy rating to a neutral rating. DA Davidson now has a $16.00 price target on the stock, down from their previous price target of $29.00. Trade Desk traded as low as $12.90 and last traded at $12.9840. Approximately 15,401,926 shares traded hands during trading, a decline of 21% from the average session volume of 19,616,184 shares. The stock had previously closed at $13.80.

TTD has been the subject of several other research reports. Scotiabank set a $12.00 price objective on shares of Trade Desk and gave the company a “sector perform” rating in a research note on Friday. Susquehanna downgraded shares of Trade Desk from a “positive” rating to a “neutral” rating and lowered their target price for the stock from $34.00 to $14.00 in a research report on Friday. Royal Bank Of Canada lowered Trade Desk from an “outperform” rating to a “sector perform” rating and set a $15.00 target price on the stock. in a report on Friday. Arete Research set a $11.60 price target on Trade Desk and gave the stock a “sell” rating in a research report on Tuesday, June 30th. Finally, Citigroup lowered Trade Desk from a “neutral” rating to a “sell” rating and lowered their price objective for the company from $21.00 to $11.00 in a report on Friday. Four equities research analysts have rated the stock with a Buy rating, twenty-seven have issued a Hold rating and eight have assigned a Sell rating to the company. According to MarketBeat, Trade Desk currently has an average rating of “Reduce” and a consensus target price of $20.56.

Insider Buying and Selling at Trade Desk

In other news, Director Samantha Jacobson sold 53,681 shares of the firm’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $21.14, for a total value of $1,134,816.34. Following the sale, the director owned 13,099 shares in the company, valued at approximately $276,912.86. This trade represents a 80.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 11.41% of the company’s stock.

Trade Desk News Roundup

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: CEO Jeffrey Green purchased approximately 6 million shares worth $148.1 million over the past six months, signaling management confidence despite the recent weakness.
• Positive Sentiment: The stock’s analyst price-target median remains $28, materially above its recent trading level, although targets have been revised lower by several firms.
• Neutral Sentiment: Institutional positioning was mixed: 319 investors increased holdings while 582 reduced them. Baillie Gifford fully exited its position, and State Street and BlackRock also cut their stakes, while several quantitative funds added shares.
• Neutral Sentiment: Congressional trading was also mixed, with four purchases and five sales reported over the past six months, offering limited directional insight.
• Negative Sentiment: Investor discussion focused on an earnings shortfall and sharply lower third-quarter guidance. Reported second-quarter revenue of $715.1 million increased only 3.0% year over year, reinforcing concerns about decelerating growth.
• Negative Sentiment: DA Davidson downgraded TTD from Buy to Neutral, while Robert W. Baird cut its rating to Hold. Evercore, BMO Capital Markets, and RBC also lowered their ratings recently. Trade Desk Cut to Hold at Robert W. Baird
• Negative Sentiment: Cantor Fitzgerald reduced its price target to $14, and Rosenblatt Securities cut its target to $12, indicating that analysts see limited near-term upside. Cantor Fitzgerald Cuts Trade Desk Price Target
• Negative Sentiment: Social-media commentary remains predominantly bearish, citing the absence of a durable competitive moat, valuation risk, and the possibility of continued volatility if growth remains in the single digits.

Institutional Trading of Trade Desk

A number of hedge funds have recently bought and sold shares of TTD. Root Financial Partners LLC increased its holdings in shares of Trade Desk by 219.4% during the 1st quarter. Root Financial Partners LLC now owns 1,319 shares of the technology company’s stock worth $30,000 after purchasing an additional 906 shares during the period. Bayforest Capital Ltd bought a new stake in shares of Trade Desk in the fourth quarter valued at about $35,000. Ascentis Independent Advisors bought a new stake in shares of Trade Desk in the first quarter valued at about $36,000. Binnacle Investments Inc acquired a new stake in Trade Desk during the third quarter worth about $37,000. Finally, Quarry LP acquired a new stake in Trade Desk during the fourth quarter worth about $37,000. 67.77% of the stock is owned by institutional investors.

Trade Desk Price Performance

The stock has a market capitalization of $6.10 billion, a P/E ratio of 15.40, a price-to-earnings-growth ratio of 0.67 and a beta of 1.04. The firm has a 50 day moving average of $18.82 and a 200-day moving average of $22.70.

Trade Desk (NASDAQ:TTD) last posted its quarterly earnings results on Thursday, May 7th. The technology company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.24). Trade Desk had a net margin of 13.61% and a return on equity of 16.09%. The firm had revenue of $688.86 million during the quarter, compared to analyst estimates of $678.87 million. During the same period last year, the company earned $0.33 EPS. The company’s revenue was up 11.8% on a year-over-year basis. As a group, equities analysts expect that The Trade Desk will post 1.17 earnings per share for the current year.

Trade Desk Company Profile

The Trade Desk, Inc (NASDAQ: TTD) is a technology company that provides a demand-side platform (DSP) for programmatic digital advertising. Its platform enables advertisers, agencies and other buyers to plan, purchase and measure ad inventory across digital channels, including display, video, mobile, audio, native and connected TV. By centralizing real‑time bidding, audience targeting and inventory access, the company aims to help clients optimize media spend and reach audiences at scale across publishers and ad exchanges.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk grew from a focus on programmatic display into a global ad‑tech provider.