Criteo (NASDAQ:CRTO) Sets New 52-Week Low - Time to Sell?

Key Points

• Criteo shares fell to a new 52-week low of $14.00, last trading near $15.01, below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but has weakened: Bernstein downgraded the stock to “market perform,” while Zacks Research issued a “strong sell” rating. The consensus remains “Hold,” with a target price of $22.65.
• Criteo exceeded quarterly EPS estimates, reporting $0.80 versus $0.71 expected, but revenue declined 11.3% year over year. Insiders sold shares primarily to cover tax obligations, while institutional investors own 94.27% of the stock.

Criteo S.A. (NASDAQ:CRTO - Get Free Report)'s share price hit a new 52-week low during trading on Thursday. The company traded as low as $14.00 and last traded at $15.0090, with a volume of 182 shares. The stock had previously closed at $14.89.

Analyst Ratings Changes

Several research firms have weighed in on CRTO. Sanford C. Bernstein lowered shares of Criteo from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $35.00 to $20.50 in a report on Thursday, August 6th. DA Davidson reissued a "buy" rating and set a $24.00 target price on shares of Criteo in a research note on Tuesday, July 7th. Huber Research cut shares of Criteo from an "overweight" rating to an "underweight" rating in a research report on Monday, August 24th. Zacks Research cut Criteo from a "hold" rating to a "strong sell" rating in a report on Monday, August 24th. Finally, Citigroup reiterated a "buy" rating on shares of Criteo in a report on Friday, August 14th. Six analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Criteo currently has a consensus rating of "Hold" and a consensus target price of $22.65.

Criteo Stock Performance

The stock has a market capitalization of $736.13 million, a price-to-earnings ratio of 7.53 and a beta of 0.29. The business has a fifty day simple moving average of $16.84 and a 200 day simple moving average of $18.18.

Criteo (NASDAQ:CRTO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The information services provider reported $0.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.71 by $0.09. The business had revenue of $428.02 million for the quarter, compared to the consensus estimate of $263.40 million. Criteo had a return on equity of 14.33% and a net margin of 5.60%. The firm's quarterly revenue was down 11.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.92 earnings per share. On average, sell-side analysts forecast that Criteo S.A. will post 2.58 earnings per share for the current fiscal year.

Insider Transactions at Criteo

In related news, CFO Sarah Glickman sold 6,285 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $17.23, for a total value of $108,290.55. Following the completion of the transaction, the chief financial officer owned 424,612 shares of the company's stock, valued at $7,316,064.76. This represents a 1.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael Komasinski sold 15,559 shares of the firm's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $17.23, for a total value of $268,081.57. Following the sale, the chief executive officer directly owned 345,547 shares in the company, valued at approximately $5,953,774.81. This trade represents a 4.31% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 30,725 shares of company stock valued at $529,527. 1.52% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Criteo

Several hedge funds and other institutional investors have recently bought and sold shares of CRTO. QRG Capital Management Inc. lifted its holdings in shares of Criteo by 15.8% in the 2nd quarter. QRG Capital Management Inc. now owns 54,023 shares of the information services provider's stock worth $988,000 after purchasing an additional 7,352 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in Criteo during the 2nd quarter worth $36,000. GAMMA Investing LLC grew its stake in shares of Criteo by 61.1% in the 2nd quarter. GAMMA Investing LLC now owns 3,465 shares of the information services provider's stock worth $63,000 after acquiring an additional 1,314 shares in the last quarter. Parallel Advisors LLC boosted its holdings in Criteo by 357.9% during the first quarter. Parallel Advisors LLC now owns 4,126 shares of the information services provider's stock worth $74,000 after purchasing an additional 3,225 shares during the last quarter. Finally, Janus Henderson Group PLC grew its position in Criteo by 4.6% in the 1st quarter. Janus Henderson Group PLC now owns 1,769,644 shares of the information services provider's stock worth $31,774,000 after purchasing an additional 77,145 shares in the last quarter. Institutional investors and hedge funds own 94.27% of the company's stock.

Criteo Company Profile

Criteo SA is a global commerce media company headquartered in Paris, France. The company provides technology that helps advertisers, retailers and publishers connect with consumers and measure the impact of digital marketing campaigns across the commerce journey.

Criteo's platform supports retail media and performance marketing activities, including sponsored product placements, display and video advertising, audience activation, customer acquisition and campaign measurement. Its solutions are designed to use commerce data and artificial intelligence to help brands reach relevant audiences, while enabling retailers and publishers to generate advertising revenue.

Founded in 2005 by Jean-Baptiste Rudelle, Franck Le Ouay and Romain Niccoli, Criteo serves clients across North America, Europe, Asia-Pacific and other international markets.

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