Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Sarah Glickman, Chief Financial Officer at Criteo (NASDAQ:CRTO), reported an insider sell on April 23, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Glickman sold 5,504 shares of Criteo. The total transaction amounted to $194,836.
Tracking the Wednesday's morning session, Criteo shares are trading at $36.5, showing a up of 2.5%.
Unveiling the Story Behind Criteo Headquartered in Paris, Criteo is one of the leading ad-tech companies 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 Financial Performance Positive Revenue Trend: Examining Criteo's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.33% as of 31 December, 2023, showcasing a substantial increase 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.
Insights into Profitability:
- Gross Margin: The company faces challenges with a low gross margin of 48.85%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Criteo's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.09.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 40.47 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a P/S ratio of 1.1 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 11.89 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Unmasking the Significance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Deep Dive into Insider 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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