Sarah Glickman Implements A Sell Strategy: Offloads $89K In Criteo Stock

Disclosed on January 24, Sarah Glickman, Chief Financial Officer at Criteo CRTO, executed a substantial insider sell as per the latest SEC filing.

What Happened: Glickman's decision to sell 3,622 shares of Criteo was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $89,608.

Monitoring the market, Criteo's shares down by 2.48% at $24.74 during Thursday's morning.

Delving into Criteo's Background

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's Economic Impact: An Analysis

Positive Revenue Trend: Examining Criteo's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.98% as of 30 September, 2023, showcasing a substantial increase 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.

Exploring Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 43.72%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Criteo's EPS is below the industry average. The company faced challenges with a current EPS of 0.12. This suggests a potential decline in earnings.

Debt Management: Criteo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.12.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 230.64, Criteo's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.78, 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): With an EV/EBITDA ratio lower than industry averages at 12.47, Criteo could be considered undervalued.

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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Exploring the Significance of Insider Trading

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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.