Trade Desk (TTD) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Trade Desk’s board has sanctioned a share repurchase initiative with indeterminate completion, sparking concerns regarding its efficacy in bolstering long-term shareholder value and countering dilution from employee equity awards. The lack of obligation to procure a specific volume of Class A common stock leaves the program’s fulfillment uncertain. Repurchases may deplete Trade Desk’s cash reserves, potentially curtailing its financial flexibility for operational and strategic growth needs. Moreover, this buyback scheme could lead to heightened volatility in the company’s stock price, with potential adverse effects if the program is abruptly withdrawn.
The average TTD stock price target is $95.84, implying 7.77% upside potential.
To learn more about Trade Desk’s risk factors, click here.
