Chief Financial Officer Of Criteo Makes $61K Sale

Disclosed on November 26, 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 1,520 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 $61,347.

The latest update on Wednesday morning shows Criteo shares down by 0.0%, trading at $41.57.

Unveiling the Story Behind Criteo

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

Negative Revenue Trend: Examining Criteo's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -2.2% in revenue growth, reflecting a decrease 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.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 50.54%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Criteo's EPS is below the industry average. The company faced challenges with a current EPS of 0.11. 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 0.11.

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 P/S ratio of 1.33 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 of 9.45 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Unlocking the Meaning of Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.