Insider Transaction: Sarah Glickman Sells $74K Worth Of Criteo Shares

Sarah Glickman, Chief Financial Officer at Criteo CRTO, disclosed an insider sell on August 27, according to a recent SEC filing.

What Happened: Glickman opted to sell 1,519 shares of Criteo, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $74,689.

Criteo's shares are actively trading at $47.0, experiencing a down of 1.03% during Wednesday's morning session.

All You Need to Know 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.

Criteo: Delving into Financials

Revenue Growth: Criteo displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 0.51%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Insights into Profitability:

• 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 is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.49.

Debt Management: Criteo's debt-to-equity ratio is below the industry average at 0.1, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The P/E ratio of 27.61 is lower than the industry average, implying a discounted valuation for Criteo's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.5, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 11.07, Criteo presents an attractive value opportunity.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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The Importance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Transaction Codes Worth Your Attention

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.