We'd be surprised if Criteo S.A. (NASDAQ:CRTO) shareholders haven't noticed that the CEO & Director, Megan Clarken, recently sold US$375k worth of stock at US$40.36 per share. On the bright side, that sale was only 1.8% of their holding, so we doubt it's very meaningful, on its own.
Criteo Insider Transactions Over The Last Year
In fact, the recent sale by CEO & Director Megan Clarken was not their only sale of Criteo shares this year. Earlier in the year, they fetched US$32.69 per share in a -US$1.2m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$42.34. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 7.1% of Megan Clarken's holding.
Over the last year, we can see that insiders have bought 85.96k shares worth US$849k. But they sold 257.29k shares for US$7.4m. In total, Criteo insiders sold more than they bought over the last year. The sellers received a price of around US$28.87, on average. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Criteo
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Criteo insiders own about US$60m worth of shares. That equates to 2.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Criteo Insiders?
Insiders sold Criteo shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Criteo is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Criteo. Case in point: We've spotted 1 warning sign for Criteo you should be aware of.
But note: Criteo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
