Trade Desk Q3 EPS Beats on 17.7% Revenue Growth, Launches $500M Buyback Program
The Trade Desk reported Q3 revenue of $739.4 million, up 17.7% year-on-year, and delivered $0.45 EPS, beating consensus by $0.01. In the quarter the board authorized a $500 million share buyback and Ethic Inc. boosted its stake by 295.3% to 22,363 shares worth $1.096 million.
1. Ethic Inc. Significantly Expands Stake
Ethic Inc. boosted its position in The Trade Desk by 295.3% during the third quarter, purchasing 16,706 additional shares to raise its total to 22,363 shares. According to the firm’s latest SEC filing, this tranche of shares was valued at $1,096,000, reflecting Ethic Inc.’s conviction in the company’s long-term ad-tech platform growth. This move represents one of the largest quarter-over-quarter institutional increases in the stock this year.
2. Broader Institutional Activity Shows Cautious Optimism
Several other funds have also adjusted their stakes in The Trade Desk portfolio. Brighton Jones LLC added 169 shares in the fourth quarter, bringing its total to 4,586 shares, while Bison Wealth LLC increased its holding by 24.3%, adding 485 shares to reach 2,480. In the first quarter, the State of Wyoming initiated a new position worth approximately $80,000, and Federation des caisses Desjardins du Quebec and EFG Asset Management North America Corp. modestly increased their stakes by 0.6% and 10.7%, respectively. Overall, institutional and hedge fund ownership accounts for 67.77% of outstanding stock.
3. Analyst Ratings Weighted Toward Neutral
Following recent analyst updates, the consensus view on The Trade Desk has tilted toward a neutral stance. Wells Fargo reduced its target from 53.00 to 47.00 and assigned an equal-weight rating; Evercore ISI cut its target from 80.00 to 70.00 while maintaining an outperform rating; Guggenheim affirmed a buy rating with a 55.00 objective; and Royal Bank of Canada reiterated an outperform view at 80.00. Across twenty buy, twelve hold and three sell recommendations, the average consensus target stands at 74.03, indicating tempered growth expectations.
4. Q3 Results and Share Buyback Underscore Confidence
In its third-quarter announcement, The Trade Desk reported revenue of 739.43 million, up 17.7% year-over-year, and delivered adjusted EPS of 0.45, slightly above consensus. The company achieved a net margin of 15.72% and a return on equity of 16.00%. Simultaneously, the board approved a $500 million share repurchase authorization, enabling the repurchase of up to 2.1% of outstanding shares. Management cited this program as a signal that current valuations do not fully reflect the platform’s growth trajectory.