Criteo Chief Legal Officer Sold $143K In Company Stock

Ryan Damon, Chief Legal Officer at Criteo CRTO, disclosed an insider sell on August 27, according to a recent SEC filing.

What Happened: Damon's decision to sell 2,912 shares of Criteo was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $143,183.

Tracking the Wednesday's morning session, Criteo shares are trading at $47.0, showing a down of 1.03%.

About Criteo

Headquartered in Paris, Criteo is one of the leading ad-tech companies in the digital advertising market. Its technology, allows retailer advertisers to launch multichannel and cross-device marketing campaigns in real time. With real-time return on investment analysis of the ads, the firm's clients can adjust their marketing strategies dynamically. The firm also provides technology allowing retailers to effectively manage their ad inventories and improve yield optimization.

Understanding the Numbers: Criteo's Finances

Revenue Growth: Over the 3 months period, Criteo showcased positive performance, achieving a revenue growth rate of 0.51% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: With a low gross margin of 49.4%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Criteo's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.49.

Debt Management: Criteo's debt-to-equity ratio is below the industry average. With a ratio of 0.1, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 27.61 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.5 is lower than the industry average, implying a discounted valuation for Criteo's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 11.07, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Navigating the Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Criteo's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.