Brian Gleason, Chief Revenue Officer and President of Retail Media at Criteo S.A. (NASDAQ:CRTO), recently sold a portion of his holdings in the company. According to a Form 4 filed with the Securities and Exchange Commission, Gleason sold 4,250 ordinary shares on November 8, 2024. The shares were sold at a weighted average price of $35.53, resulting in a total transaction value of approximately $151,002.
Following this transaction, Gleason retains ownership of 142,220 shares in the company. The sale was conducted under a Rule 10b5-1 trading plan, which allows company insiders to execute trades according to a pre-determined schedule and is designed to prevent insider trading.
Criteo, a global technology company specializing in advertising and retail media, continues to be a focus for investors as it navigates the evolving digital advertising landscape.
In other recent news, Criteo, a global technology company, reported a robust financial performance in Q3 2024, with $459 million in revenue and a 9% year-over-year growth in Contribution ex-TAC at constant currency. The company's Retail Media revenue increased by 23%, reaching $61 million, while Performance Media grew by 5%. Despite this, Criteo's AdTech services experienced a 16% decline due to reliance on one client. However, the company anticipates a 10%-11% growth in Contribution ex-TAC for 2024, with an adjusted EBITDA margin projected at 32%-33%.
In response to these developments, BMO Capital Markets and DA Davidson adjusted their price targets for Criteo, with BMO Capital reducing it to $48.00 and DA Davidson lowering it to $53.00. Both firms maintained a positive outlook on the company's shares, with BMO Capital maintaining an Outperform rating and DA Davidson sustaining a Buy rating.
CEO Megan Clarken announced her upcoming retirement, expressing confidence in the company's growth strategy. This includes AI-driven performance and expanding partnerships, such as a strategic collaboration with Microsoft (NASDAQ:MSFT) Advertising. These recent developments reflect Criteo's continued growth and adaptability in the competitive digital advertising landscape.
InvestingPro Insights
To provide additional context to Brian Gleason's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Criteo S.A. (NASDAQ:CRTO).
Despite the recent insider sale, Criteo's management has been actively engaged in share repurchases. According to an InvestingPro Tip, "Management has been aggressively buying back shares," which could be interpreted as a sign of confidence in the company's value proposition.
Financially, Criteo appears to be on solid footing. The company "holds more cash than debt on its balance sheet," as noted by another InvestingPro Tip. This strong liquidity position is further supported by the fact that Criteo's "liquid assets exceed short term obligations," providing the company with financial flexibility in the dynamic digital advertising market.
From a valuation perspective, Criteo's P/E ratio stands at 20.52, with an adjusted P/E ratio of 17.11 for the last twelve months as of Q3 2024. The company's market capitalization is approximately $2.03 billion, reflecting its significant presence in the ad-tech industry.
It's worth noting that while Criteo has experienced a "strong return over the last five years," according to InvestingPro, the stock price "has fallen significantly over the last three months." This recent dip could present an opportunity for investors who share the company's long-term vision.
For those interested in a deeper dive into Criteo's financials and prospects, InvestingPro offers 14 additional tips, providing a comprehensive analysis of the company's position in the market.
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