CPI Card Group (NASDAQ:PMTS) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded CPI Card Group from “strong-buy” to “buy”, though the broader analyst view still remains positive with a consensus rating of Buy and an average target price of $27.50.
• The company recently reported better-than-expected quarterly results, posting $0.38 EPS versus the $0.32 estimate and revenue of $147.11 million versus $134.69 million expected.
• Shares of PMTS were trading at $20.38, below the consensus target but above the stock’s 50-day and 200-day moving averages, while insider activity showed both a sale by one executive and a purchase by the chairman.

CPI Card Group (NASDAQ:PMTS - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday.

A number of other equities analysts have also weighed in on the stock. Roth Mkm restated a "buy" rating and set a $25.00 price target on shares of CPI Card Group in a research report on Tuesday, May 5th. Zacks Research raised shares of CPI Card Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 2nd. Lake Street Capital restated a "buy" rating and set a $27.00 target price on shares of CPI Card Group in a report on Wednesday, May 6th. DA Davidson restated a "buy" rating and issued a $30.00 price target on shares of CPI Card Group in a research report on Thursday, June 25th. Finally, Weiss Ratings raised CPI Card Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $27.50.

CPI Card Group Price Performance

Shares of NASDAQ:PMTS opened at $20.38 on Friday. CPI Card Group has a 1 year low of $10.81 and a 1 year high of $25.50. The firm has a market capitalization of $233.96 million, a PE ratio of 19.98 and a beta of 1.03. The business's 50 day moving average price is $17.67 and its 200-day moving average price is $15.55.

CPI Card Group (NASDAQ:PMTS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.32 by $0.06. CPI Card Group had a negative return on equity of 92.16% and a net margin of 2.15%.The firm had revenue of $147.11 million during the quarter, compared to the consensus estimate of $134.69 million. As a group, analysts expect that CPI Card Group will post 2.52 earnings per share for the current year.

Insider Activity

In other CPI Card Group news, insider Donna Abbey Carmignani sold 4,870 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $15.32, for a total value of $74,608.40. Following the transaction, the insider directly owned 5,478 shares in the company, valued at $83,922.96. The trade was a 47.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman H Sanford Riley purchased 5,400 shares of the company's stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average cost of $16.00 per share, with a total value of $86,400.00. Following the purchase, the chairman owned 5,400 shares in the company, valued at approximately $86,400. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 5.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in CPI Card Group by 5.7% in the third quarter. Vanguard Group Inc. now owns 498,101 shares of the company's stock worth $7,541,000 after acquiring an additional 26,848 shares during the period. Vector Capital Management L.P. lifted its stake in shares of CPI Card Group by 18.6% in the 3rd quarter. Vector Capital Management L.P. now owns 459,314 shares of the company's stock valued at $6,954,000 after purchasing an additional 71,891 shares during the last quarter. Pacific Ridge Capital Partners LLC lifted its stake in shares of CPI Card Group by 13.1% in the 4th quarter. Pacific Ridge Capital Partners LLC now owns 442,464 shares of the company's stock valued at $6,495,000 after purchasing an additional 51,139 shares during the last quarter. Wasatch Advisors LP grew its holdings in shares of CPI Card Group by 56.3% during the 2nd quarter. Wasatch Advisors LP now owns 357,754 shares of the company's stock worth $8,486,000 after purchasing an additional 128,808 shares during the period. Finally, Geode Capital Management LLC increased its position in shares of CPI Card Group by 5.2% during the 4th quarter. Geode Capital Management LLC now owns 145,450 shares of the company's stock worth $2,136,000 after purchasing an additional 7,236 shares during the last quarter. 22.08% of the stock is currently owned by institutional investors and hedge funds.

CPI Card Group Company Profile

CPI Card Group, Inc NASDAQ: PMTS is a leading provider of payment, identification and related credential solutions for financial institutions, governments and private enterprises. The company specializes in the design, manufacturing and personalization of secure plastic and metal cards, including EMV chip, magnetic-stripe and contactless cards. CPI Card Group also offers digital credentialing services and cloud-based card management tools that enable real-time controls, mobile wallet integration, fraud monitoring and analytics.

With a focus on security and innovation, CPI Card Group integrates advanced features such as holograms, microprinting, RFID/NFC technology and laser-engraved artwork into its card products.

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