Insider Buying

Insider Buying Report: The Trade Desk Inc (TTD:US)

The Trade Desk Inc
(TTD:US)
12 months:
-3.86%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Q1 results
The Trade Desk Inc
(TTD:US)
12 months:
-3.86%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Q1 results

Insider transactions can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its executives and directors.

In this report, we are going to highlight some interesting insider buying at The Trade Desk (TTD:US). The Trade Desk is a technology company that empowers advertising buyers. Through its cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. The company is listed on the NASDAQ Global Market and currently has a market capitalization of $26.5 billion.

The Trade Desk Inc: Insider Buying

Our data shows that on May 25, board member David Wells snapped up 17,500 TTD shares at a price of $45.81 per share. This trade cost the insider $801,675 and increased his holding to 106,570 shares.

First Insider Purchase Since 2017

This trade is worth highlighting for a number of reasons.

Firstly, it is a large purchase both in nominal and relative terms. In buying 17,500 shares, Mr. Wells has increased the size of his holding by 20%. This suggests that he is confident the stock is set to move higher.

Secondly, this trade represents the first buy from an insider at The Trade Desk since June 2017. And it comes after a significant pullback. This indicates that Mr. Wells sees value in the stock after the recent pullback.

Third, Mr. Wells has considerable experience in the technology space. Previously, he served as CFO at Netflix for eight years, after serving as Vice President of Financial Planning and Analysis at the company. Before joining Netflix he was a management consultant at Deloitte.

Disappointing Guidance

The Trade Desk recently posted strong results for the first quarter of 2022 that were ahead of expectations.For the period, revenue came in at $315 million, up 43% year on year. Meanwhile, non-GAAP net income amounted to $105 million, up from $70 million a year earlier. Earnings per share were $0.21 versus the consensus forecast of $0.15.

However, the stock fell after the results due to slightly weaker-than-expected guidance. For Q2, The Trade Desk said it was expecting revenue of $364 million and adjusted EBITDA of $121 million. Some investors had been expecting a higher level of adjusted EBITDA. Analysts at Jefferies noted that the adjusted EBITDA forecast of $121 million implies 9% year on year margin compression. On the back of this guidance, several brokers cut their price targets for the stock.

The large buy here from Mr. Wells suggests that he expects the stock to bounce back. We see his buying activity as a bullish indicator.

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