Insider Transaction: Megan Clarken Sells $456K Worth Of Criteo Shares

A substantial insider sell was reported on August 27, by Megan Clarken, Chief Executive Officer at Criteo CRTO, based on the recent SEC filing.

What Happened: Clarken's decision to sell 9,283 shares of Criteo was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $456,445.

At Wednesday morning, Criteo shares are down by 0.42%, trading at $47.29.

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

Positive Revenue Trend: Examining Criteo's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.51% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Analyzing Profitability Metrics:

• 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 outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.49.

Debt Management: Criteo's debt-to-equity ratio is below the industry average. With a ratio of 0.1, 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 Price to Earnings ratio of 27.61 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.5 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 11.07, 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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Unmasking the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

A Closer Look at Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.