It was reported on November 26, that Ryan Damon, Chief Legal Officer at Criteo CRTO executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Damon sold 2,885 shares of Criteo. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $116,438.

At Wednesday morning, Criteo shares are down by 0.0%, trading at $41.57.

Discovering Criteo: A Closer Look

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.

Financial Insights: Criteo

Revenue Challenges: Criteo’s revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -2.2%. This indicates a decrease in 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.

Key Profitability Indicators:

• 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): With an EPS below industry norms, Criteo exhibits below-average bottom-line performance with a current EPS of 0.11.

Debt Management: Criteo’s debt-to-equity ratio is below the industry average at 0.11, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 24.31 is lower than the industry average, indicating potential undervaluation for the stock.

• 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 9.45 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Why Insider Transactions Are Key in Investment Decisions

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

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

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.

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