Jeffrey Terry Green Expands Holdings With $542K Trade Desk Stock Options Acquisition

A substantial acquisition of company stock options by Jeffrey Terry Green, President and CEO at Trade Desk TTD was reported on April 17, based on a new SEC filing.

What Happened: Revealed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Green, President and CEO at Trade Desk, strategically acquired stock options for 450,045 shares of TTD. These options empower Green to buy the company's stock at a favorable 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, Green's 450,045 shares have a total value of $542,439.

All You Need to Know 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.

Trade Desk: A Financial Overview

Revenue Growth: Trade Desk's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 22.32%. This signifies 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.

Evaluating Earnings Performance:

• Gross Margin: The company excels with a remarkable gross margin of 81.75%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Trade Desk's EPS is below the industry average. The company faced challenges with a current EPS of 0.37. This suggests a potential decline in earnings.

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

Valuation Overview:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 62.12 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: The current P/S ratio of 9.95 is above industry norms, reflecting an elevated valuation for Trade Desk's stock and potential overvaluation 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 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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Unmasking the Significance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Exploring Key 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.