Trade Desk Q3 Revenue Rises 17.7% to $739M; Board Approves $500M Buyback
The Trade Desk reported Q3 EPS of $0.45, beating estimates by $0.01, and revenue rose 17.7% to $739.4M versus $719.1M consensus. The board also authorized a $500M share repurchase program, enabling buybacks of up to 2.1% of outstanding shares.
1. Ethic Inc. Significantly Increases The Trade Desk Stake
Ethic Inc. boosted its position in The Trade Desk by purchasing an additional 16,706 shares during the third quarter, representing a 295.3% increase in its holdings. Following this acquisition, the firm holds 22,363 shares valued at approximately $1,096,000 per its most recent SEC filing. This sizable build–out underscores Ethic’s conviction in the company’s long-term growth trajectory within the programmatic advertising market.
2. Broader Institutional Activity Highlights Growing Interest
Several other institutional investors have also adjusted their positions in The Trade Desk. Brighton Jones LLC added 169 shares in the fourth quarter, bringing its total to 4,586 shares (up 3.8%), while Bison Wealth LLC increased its stake by 485 shares (24.3% growth) to reach 2,480 shares. State of Wyoming opened a new position valued at roughly $80,000 in the first quarter. Canadian cooperative Federation des caisses Desjardins du Quebec added 260 shares in Q1 to hold 41,510 shares, and EFG Asset Management North America Corp. raised its position by 3,901 shares (10.7%) to 40,201 shares. Institutional investors and hedge funds now account for 67.77% of outstanding shares.
3. Analyst Sentiment Remains Mixed with Hold Consensus
A total of 35 analysts cover The Trade Desk, with 20 recommending Buy, 12 Hold and 3 Sell, resulting in an average sentiment of Hold. In early November, Wells Fargo & Company downgraded their view to Equal Weight after reducing their long-term outlook, and Evercore ISI trimmed its projection while maintaining an Outperform stance. Guggenheim and Royal Bank of Canada continue to rate the company positively, reflecting divergent views on near-term valuation versus growth potential.
4. Q3 Financial Results Exceed Expectations and Board Authorizes Buyback
In its third-quarter report, The Trade Desk delivered $0.45 in earnings per share, surpassing the consensus estimate of $0.44, and reported revenue of $739.43 million against an expected $719.11 million. Revenue growth of 17.7% year-over-year and a net margin of 15.72% underscore improving operational leverage. Return on equity stood at 16.00%. On the same day, the board approved a $500 million share repurchase program, authorizing up to 2.1% of shares to be repurchased, signaling confidence in the company’s intrinsic value.