Rachel Picard, Director at Criteo CRTO, reported an insider buy on November 25, according to a new SEC filing.

What Happened: Picard’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 8,007 shares of Criteo. The total transaction value is $313,874.

The latest market snapshot at Tuesday morning reveals Criteo shares down by 0.0%, trading at $40.02.

Get to Know Criteo Better

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: A Financial Overview

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. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 50.54%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Criteo’s EPS lags behind the industry average, indicating concerns and potential challenges 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.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 23.4 is lower than the industry average, implying a discounted valuation for Criteo’s stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.28, 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): The company’s EV/EBITDA ratio of 9.08 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

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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Uncovering the Importance of Insider Activity

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

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of 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.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.