On August 2, 2023, Senvest Management, LLC (Trades, Portfolio), a New York-based investment firm, significantly increased its holdings in Criteo SA, a leading ad-tech company based in France. This article provides an in-depth analysis of the transaction, the profiles of both Senvest Management and Criteo SA, and the potential implications of this investment.
Details of the Transaction
Senvest Management, LLC (Trades, Portfolio) added 891,580 shares of Criteo SA to its portfolio, a change of 44.77%. The shares were traded at a price of $31.71 each. This addition had an impact of 1.02% on the firm's portfolio, bringing its total holdings in Criteo SA to 2,883,056 shares. This represents 3.29% of the guru's portfolio and 5.20% of Criteo SA's total shares.
Profile of Senvest Management, LLC (Trades, Portfolio)
Senvest Management, LLC (Trades, Portfolio) is an investment firm located at 540 Madison Avenue, New York. The firm manages an equity portfolio worth $2.75 billion, spread across 46 stocks. Its top holdings include eBay Inc(EBAY, Financial), QuidelOrtho Corp(QDEL, Financial), Capri Holdings Ltd(CPRI, Financial), PennyMac Financial Services Inc(PFSI, Financial), and Marriott Vacations Worldwide Corp(VAC, Financial). The firm primarily invests in the Technology and Consumer Cyclical sectors. 
Profile of Criteo SA
Headquartered in Paris, Criteo SA is a leading player in the digital advertising market. The company's technology enables retailer advertisers to launch multichannel and cross-device marketing campaigns in real time. Criteo SA operates through three segments: Iponweb, Marketing Solutions, and Retail Media. The company has a market capitalization of $1.69 billion and its current stock price is $30.21. 
Analysis of Criteo SA's Stock
According to GuruFocus, Criteo SA's stock is modestly overvalued with a GF Value Rank of 3/10. The company's GF Score is 71/100, indicating likely average performance. Criteo SA's Balance Sheet Rank is 7/10, its Profitability Rank is 7/10, and its Growth Rank is 3/10.
Financial Health of Criteo SA
Criteo SA has a Cash to Debt ratio of 2.87 and an interest coverage of 16.63. The company's ROE and ROA are -2.19 and -1.12 respectively. Its Altman Z score is 2.21 and its Piotroski F-Score is 5, indicating a stable financial situation.
Performance of Criteo SA's Stock
Since the transaction, Criteo SA's stock has declined by 4.73%. However, the stock has seen a year-to-date price change ratio of 16.78%. Since its IPO in 2013, the stock's price change ratio is -28.07%.
Conclusion
In conclusion, Senvest Management, LLC (Trades, Portfolio)'s recent acquisition of Criteo SA shares represents a significant addition to its portfolio. Despite the modest overvaluation and average GF Score of Criteo SA's stock, the firm's strong balance sheet and profitability rank suggest potential for future growth. However, the recent decline in the stock's price following the transaction indicates that investors should monitor the situation closely.
