Laura Schenkein Executes Major Move: Acquires $189K In Trade Desk Stock Options

A substantial insider move unfolded on April 17, as Schenkein, Chief Financial Officer at Trade Desk TTD, reported the acquisition of stock options for 157,515 shares in an SEC filing.

What Happened: Disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Schenkein, Chief Financial Officer at Trade Desk, made a strategic derivative acquisition. This involved acquiring stock options for 157,515 shares of TTD, providing the right to buy the company’s stock at an exercise price of $49.24 per share.

As of Friday morning, Trade Desk shares are up by 4.12%, with a current price of $50.45. This implies that Schenkein’s 157,515 shares have a value of $189,852.

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 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 Insights: Trade Desk

Revenue Growth: Trade Desk’s revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 22.32%. This indicates a substantial 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 maintains a high gross margin of 81.75%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Trade Desk’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.37.

Debt Management: Trade Desk’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.11.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 62.12, Trade Desk’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 9.95, 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 of 43.15 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Insider Activity Matters in Finance

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider’s Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.