On October 18, 2023, Gokul Rajaram, a director at The Trade Desk Inc (TTD, Financial), sold 2,999 shares of the company. This move is part of a series of transactions by the insider over the past year, during which Rajaram has sold a total of 35,987 shares and made no purchases.
Gokul Rajaram, known as the "Godfather of AdSense," is a prominent figure in the tech industry. He has held leadership roles at several major companies, including Google and Facebook. At The Trade Desk, Rajaram brings his extensive experience in digital advertising and technology to the board of directors.
The Trade Desk Inc is a technology company that empowers buyers of advertising. The company's platform enables ad buyers to manage data-driven digital advertising campaigns across various advertising formats, including display, video, and social, and on a multitude of devices, including computers, mobile devices, and connected TV.
The insider's recent sell-off is part of a broader trend at The Trade Desk. Over the past year, there have been 28 insider sells and no insider buys. This trend is illustrated in the following chart:
The relationship between insider transactions and stock price can provide valuable insights. In the case of The Trade Desk, the stock was trading at $78.82 per share on the day of the insider's recent sell, giving the company a market cap of $36.304 billion. This price represents a price-earnings ratio of 291.81, significantly higher than both the industry median of 26.11 and the company's historical median.
Despite the high price-earnings ratio, The Trade Desk's stock appears to be significantly undervalued based on its GuruFocus Value of $110.78. The price-to-GF-Value ratio is 0.71, suggesting that the stock is undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The GF Value for The Trade Desk is shown in the following chart:
In conclusion, while the insider's recent sell-off may raise some eyebrows, the stock's valuation suggests that The Trade Desk may still be a good investment opportunity. However, potential investors should always conduct their own thorough research and consider other factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
