Criteo Chief Executive Officer Trades $374K In Company Stock

On November 26, a recent SEC filing unveiled that Megan Clarken, Chief Executive Officer at Criteo CRTO made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Clarken sold 9,284 shares of Criteo. The total transaction value is $374,702.

As of Wednesday morning, Criteo shares are down by 0.0%, currently priced at $41.57.

Discovering Criteo: A Closer Look

Criteo SA is an ad-tech company 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 Milestones: Criteo's Journey

Revenue Growth: Criteo's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -2.2%. This indicates a decrease 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.

Analyzing Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 50.54%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Criteo exhibits below-average bottom-line performance with a current EPS of 0.11.

Debt Management: Criteo's debt-to-equity ratio is below the industry average. With a ratio of 0.11, 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 current P/E ratio of 24.31 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.33, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Criteo's EV/EBITDA ratio, lower than industry averages at 9.45, indicates attractively priced shares.

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

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Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes Worth Your Attention

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.

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