On September 20, 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 made by the insider over the past year, which have seen a total of 32,988 shares sold and no shares purchased.
Gokul Rajaram, a prominent figure in the tech industry, has been a director at The Trade Desk since 2016. Prior to this, he held key positions at Google and Facebook, and is currently serving as the Caviar Lead at Square. His extensive experience and knowledge in the field have been instrumental in guiding The Trade Desk's strategic decisions.
The Trade Desk Inc is a technology company that empowers buyers of advertising. The company's platform enables ad buyers to effectively manage data-driven digital advertising campaigns using various ad formats across various digital channels. The Trade Desk's unified software platform is used by advertisers and agencies worldwide.
The insider's recent sell-off has raised some eyebrows among investors and analysts. Over the past year, there have been 25 insider sells and no insider buys. This trend is illustrated in the following chart:
The relationship between insider trading and stock price is complex. While it's not uncommon for insiders to sell their shares, a high volume of selling can sometimes indicate a lack of confidence in the company's future prospects. However, it's also important to note that insiders may sell shares for reasons unrelated to the company's performance, such as personal financial planning.
On the day of the insider's recent sell, shares of The Trade Desk Inc were trading at $79.2, giving the company a market cap of $37.12 billion. The stock's price-earnings ratio stands at 291.23, significantly higher than the industry median of 27.04 and the company's historical median price-earnings ratio.
Despite the high P/E ratio, the stock appears to be significantly undervalued based on its GF Value. With a price of $79.2 and a GuruFocus Value of $108.58, The Trade Desk Inc has a price-to-GF-Value ratio of 0.73. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell-off may raise some concerns, the stock's current valuation suggests that it may still be a good investment opportunity. As always, investors should conduct their own research and consider their risk tolerance before making investment decisions.