Jay R Grant At Trade Desk Secures Company Stock Options: $189K Acquired

A noteworthy insider acquisition was disclosed on April 17, as Grant, Chief Legal Officer at Trade Desk TTD, reported the acquisition of stock options for 157,515 shares.

What Happened: Uncovered in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Grant, Chief Legal Officer at Trade Desk, executed an insider options move. This move consisted of acquiring stock options for 157,515 shares of TTD, granting Grant the right to purchase the company's stock at an exercise price of $49.24 per share.

During Friday's morning session, Trade Desk shares up by 4.12%, currently priced at $50.45. Considering the current price, Grant's 157,515 shares have a total value of $189,852.

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 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. As compared to its peers, the company achieved a growth rate higher than the average among peers in 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 reflects a decline, falling below the industry average with a current EPS of 0.37.

Debt Management: Trade Desk's debt-to-equity ratio is below the industry average. With a ratio of 0.11, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Trade Desk's current Price to Earnings (P/E) ratio of 62.12 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 9.95 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 43.15 reflects market recognition of Trade Desk's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Why Insider Activity Matters in Finance

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

The Insider's Guide to Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.