Insider Transaction: Megan Clarken Sells $935K Worth Of Criteo Shares

Megan Clarken, Chief Executive Officer at Criteo CRTO, executed a substantial insider sell on February 13, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Clarken sold 21,304 shares of Criteo. The total transaction value is $935,166.

During Friday's morning session, Criteo shares down by 0.0%, currently priced at $43.99.

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.

Understanding the Numbers: Criteo's Finances

Revenue Challenges: Criteo's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -2.2%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Holistic Profitability Examination:

• 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): Criteo's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.11.

Debt Management: Criteo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.11.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 23.15 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.33, 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 a lower-than-industry-average EV/EBITDA ratio of 9.09, Criteo presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Important

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

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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.