A large exercise of company stock options by David B Wells, Director at Trade Desk TTD was disclosed in a new SEC filing on May 15, as part of an insider exercise.
What Happened: In an insider options sale disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Wells, Director at Trade Desk, exercised stock options for 28,638 shares of TTD. The transaction value amounted to $515,450.
During Friday’s morning session, Trade Desk shares down by 1.57%, currently priced at $76.28. Considering the current price, Wells’s 28,638 shares have a total value of $515,450.
Discovering Trade Desk: A Closer Look
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.
Trade Desk: A Financial Overview
Positive Revenue Trend: Examining Trade Desk’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 25.4% as of 31 March, 2025, showcasing a substantial increase in 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.
Key Insights into Profitability Metrics:
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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, signaling challenges in bottom-line performance with a current EPS of 0.1.
Debt Management: Trade Desk’s debt-to-equity ratio is below the industry average at 0.12, reflecting a lower dependency on debt financing and a more conservative financial approach.
Assessing Valuation Metrics:
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Price to Earnings (P/E) Ratio: The P/E ratio of 94.51 is lower than the industry average, implying a discounted valuation for Trade Desk’s stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 15.17 is above industry norms, reflecting an elevated valuation for Trade Desk’s stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 67.59, Trade Desk demonstrates a robust market valuation, outperforming industry benchmarks.
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.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
A Closer Look at Important 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.
