Locking in Big Gains on These Two Positions
After significant outperformance relative to the S&P 500, we're ringing the register on two Portfolio names.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
TTD | Sell | 85 | $110.75 | 1,485 | 3.5% |
OLED | Sell | 80 | $213.50 | 880 | 4.0% |
After you receive this alert, we will make the following trades:
- Sell 85 shares of Trade Desk TTD at or near $110.75. Following the trade, the Portfolio will own 1,485 TTD shares, roughly 3.5% of the Portfolio.
- Sell 80 shares of Universal Display OLED at or near $213.50. Following the trade, the Portfolio will own 880 OLED shares, roughly 4.0% of the Portfolio.
Over the last six weeks, the Portfolio has made some very nice strides with outsized gains in several positions since the market rebound in early August. Two moves that especially stand out are the 36% gain in Universal Display shares and the more than 30% move in Trade Desk shares. What makes them stand out even more so is their significant outperformance relative to the S&P 500, which was up less than one-third compared to those positions.
Universal Display
The impact on OLED shares has pushed them to more than 4.3% of the Portfolio’s assets when the market is short-term overbought and its valuation is stretched. Recognizing those factors is leading to some prudent Portfolio management, which will also lock in a sizable gain for the Portfolio and members.
After the trade, we will still have a sizable position in OLED shares, which will allow us to capture the continued adoption of organic light-emitting diode display technology across a growing array of applications beyond smartphones. For now, we’ll keep our one rating, but should OLED shares move past the $225 level, we may revisit that rating.
Trade Desk
As we make these trades, we will also downgrade TTD shares to a two rating from one. The catalyst for that move is that, with Tuesday night’s market close, we have less than 10% upside to our current $120 price target.
We continue to see Trade Desk benefitting from the shift to digital advertising and the adoption of advertising business models across streaming and connected TV. Should we see that adoption accelerate faster than expected in the next few weeks as we digest upcoming earnings from Netflix NFLX, Amazon AMZN and others, we will revisit our TTD price target as warranted.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to click on Closed Trade Gain/Loss and toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long TTD, OLED and AMZN.
