Witnessing An Insider Decision, Ryan Damon Exercises Options Valued At $358K At Criteo

Ryan Damon, Chief Legal Officer at Criteo CRTO, reported a large exercise of company stock options on September 16, according to a new SEC filing.

What Happened: Damon, Chief Legal Officer at Criteo, exercised stock options for 16,845 shares of CRTO stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The exercise price of the options was $20.66 per share.

Currently, Criteo shares are trading down 0.0%, priced at $41.95 during Tuesday's morning. This values Damon's 16,845 shares at $358,630.

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.

Financial Insights: Criteo

Revenue Growth: Criteo's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.51%. This signifies 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.

Exploring 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): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.49, Criteo showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 0.1, Criteo adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Criteo's P/E ratio of 24.39 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.32 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): The company's EV/EBITDA ratio 9.72 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Understanding Crucial Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.