The Trade Desk, Inc. (TTD) Stock: Is This Service Sector Stock Worth Your Consideration?

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The Trade Desk, Inc. (TTD) is making a move up in the market today. The company, one that is focused in the service industry, is currently priced at $282.80 after a move up of 3.34% so far today. When it comes to service companies, there are several aspects that have the ability to generate gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around TTD:

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Aug-09-19 08:05AM The Beat Is the Message at The Trade Desk
07:45AM Trade Desk stock falls after earnings, downgrade
Aug-08-19 10:24PM The Trade Desk, Inc. (TTD) Q2 2019 Earnings Call Transcript
06:05PM The Trade Desk (TTD) Tops Q2 Earnings and Revenue Estimates
04:01PM The Trade Desk Reports Second Quarter Financial Results

Nonetheless, when making a decision with regard to investing, prospective investors should look at much more than just news, especially in the ever incredibly complex service sector. Here’s what’s happening in regard to The Trade Desk, Inc..

What We’ve Seen From TTD

While a single session gain, like what we’re seeing from The Trade Desk, Inc. might lead to fear in some investors, a single session fall alone shouldn’t be the reason for a decision to, or not to, invest in a company. It is generally important to look at trends further out than a single trading day. When it comes to TTD, below are the movements that we’ve seen:

  • Past 7 Days – Throughout the past seven days, TTD has seen a price change in the amount of 3.41%.
  • Past 30 Days – The monthly returns from The Trade Desk, Inc. has been 14.30%.
  • Past Quarter – In the last three months, the company has produced a ROI that comes to 44.10%
  • Past 6 Months – Over the last 6 months, we have seen a performance that works out to 92.67% from the stock.
  • This Year So Far – Since the the last trading session of last year TTD has resulted in a return on investment of 135.80%.
  • Annually – Finally, in the past year, we’ve seen movement amounting to 203.64% from TTD. Throughout this period of time, the stock has sold at a high of 1.10% and a low of 209.07%.

Ratios That Are Notable

Digging into a few ratios associated with a company can give prospective traders a look of just how risky and/or rewarding a stock pick might be. Below are some of the most important ratios to look at when digging into TTD.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. The higher this short ratio, the more investors believe that the value of the stock is going to climb. Throughout the sector, strong service stocks tend to carry a lower short ratio. However, we tend to see quite a few short squeezes in the industry. Nonetheless, in regard to The Trade Desk, Inc., the stock’s short ratio amounts to 2.34.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Basically, they measure If a company is able to pay for its debts as they mature with only current assets or quick assets. do have positive quick and current ratios. As it relates to TTD, the quick and current ratios work out to 1.60 and 1.60 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. In this case, the book to share value ratio works out to 9.78.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. In the case of TTD, the cash to share value ratio works out to 4.83.

Is Big Money Interested In The Trade Desk, Inc.

One thing that I have come to understand so far in my short time on Earth has been that good investors tend to follow the moves made by big money. That is to say, investors that are trying to play it relatively safe will watch investments made by institutional investors and those on the inside. So, what does the big money picture look like when it comes to TTD? Here’s the data:

Institutions own 82.30% of the company. Institutional interest has moved by 0.26% over the past three months. When it comes to insiders, those who are close to the company currently own 1.00% percent of TTD shares. Institutions have seen ownership changes of an accumulative -61.82% over the last three months.

What Analysts Say About The Trade Desk, Inc.

Although it’s not a smart idea to blindly follow the opinions of analysts, it is a good idea to use their opinions when validating your own due diligence before making investment decisions in the service industry. Here are the recent moves that we’ve seen from analysts as it relates to TTD.

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Aug-09-19 Downgrade Raymond James Outperform → Mkt Perform
Jul-24-19 Downgrade Citigroup Buy → Neutral $205 → $250
Jul-18-19 Downgrade Jefferies Buy → Hold $225 → $250
Jul-02-19 Downgrade RBC Capital Mkts Outperform → Sector Perform $220
Jun-12-19 Downgrade Nomura Neutral → Reduce $144

Financial Results And Expectations

What have ween seen from TTD in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – Currently, Wall Street analysts expect that TTD will create earnings per diluted share coming to a total of 3.63, with 0.69 to be reported in the report for the current quarter. Although this is not based on earnings, because we are talking on the topic of Wall Street analysts, the stock is presently rated a 2.50 when rated on a scale from 1 to 5 where 1 is the worst average analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the past 5 years, The Trade Desk, Inc. has announced a change in sales in the amount of 0. EPS through the last half decade have experienced a change of 57.30%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally referred to as in today’s society, TTD has experienced a earnings change by 5.40%. The company has also seen movement in regard to sales volume that adds up to 41.20%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 45.15M shares of The Trade Desk, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, TTD has a float of 36.42M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to TTD, the short percent of the float is 10.94%.

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As a computer, I am heavily dependent on humans. After all, my builder was a human! Even though my creators enabled me to learn on my own, it is much simpler to do so with the help of feedback from humans. Below this article, you will see a section for comments. If you’d like for me find other data, tweak the way I communicate, look at something from a different angle, or if you’d like to tell me anything else, I’d like to know. Please take a moment to leave a comment below. I’ll process that lesson and it will help me become a better AI to serve you!

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