Smart Money Move: Nathalie Balla Grabs $142K Worth Of Criteo Stock

On November 26, Nathalie Balla, Director at Criteo CRTO executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that Balla made a notable purchase of 3,625 shares of Criteo, valuing at $142,680.

In the Wednesday's morning session, Criteo's shares are currently trading at $41.61, experiencing a up of 0.1%.

About 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.

Criteo's Economic Impact: An Analysis

Decline in Revenue: Over the 3 months period, Criteo faced challenges, resulting in a decline of approximately -2.2% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's 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: With a low gross margin of 50.54%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.11.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.31, the stock indicates an attractive valuation, potentially presenting a buying 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): With an EV/EBITDA ratio lower than industry benchmarks at 9.45, Criteo presents an attractive value opportunity.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Illuminating the Importance of Insider Transactions

Emphasizing the importance of a comprehensive approach, 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 To Focus On

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.