Trade Desk, Inc. (NASDAQ:TTD) President and CEO Jeffrey Terry Green has sold a significant portion of his holdings in the company, according to a recent regulatory filing. Over the course of two days, Green disposed of a total of 140,007 shares of Class A Common Stock, with transactions valued at over $12 million.
The sales, which took place on April 3rd and 4th, were executed at weighted average prices ranging from $87.28 to $87.97 per share. On the first day, Green sold 66,007 shares at an average price of $87.38, followed by 74,367 shares at an average price of $87.28 and a smaller batch of 633 shares at an average price of $87.97 on the subsequent day.
It's noteworthy that these transactions were carried out under a prearranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This plan was adopted by Green on June 15, 2023, and later modified on November 13, 2023.
Following these transactions, Green still maintains a substantial interest in Trade Desk through direct and indirect holdings. The shares sold were held by the Jeff Green Trust and the Jeff T. Green Family Foundation, where Green has investment and voting control and may be deemed to indirectly beneficially own the shares.
Trade Desk, headquartered in Ventura, California, operates within the computer programming and data processing sector, providing a platform for digital advertising buyers.
Investors often monitor insider sales for hints about executives' confidence in their company's prospects, although such sales can also reflect personal financial management strategies rather than a change in outlook on the company's future performance.
InvestingPro Insights
The recent insider selling by Trade Desk's President and CEO Jeffrey Terry Green has drawn attention to the company's financial standings and future prospects. According to InvestingPro data, Trade Desk boasts a robust market cap of $41.97 billion, reflecting a significant presence in the digital advertising industry. With a high gross profit margin of 81.21% for the last twelve months as of Q4 2023, the company demonstrates strong profitability in its core operations.
Despite a towering P/E ratio of 235.49, indicating a premium valuation, the company's net income is expected to grow this year, as per one of the InvestingPro Tips. This anticipated growth, coupled with the fact that Trade Desk holds more cash than debt on its balance sheet, suggests a solid financial structure that could reassure investors about the company's capacity to navigate market uncertainties.
Moreover, the stock has experienced a strong return over the last three months, with a 26.89% increase, which aligns with another InvestingPro Tip highlighting the company's recent robust performance. For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 13 more listed on the InvestingPro platform for Trade Desk, providing a comprehensive view of the company's financial health and market potential.
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As Trade Desk continues to innovate within the digital advertising space, these financial metrics and expert tips could prove invaluable for investors assessing the company's position and trajectory in the market.
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