CPI Card Group (NASDAQ:PMTS) Upgraded by Wall Street Zen to Strong-Buy Rating

Key Points

• Wall Street Zen upgraded CPI Card Group (NASDAQ: PMTS) from buy to strong-buy, adding to a generally positive analyst backdrop that includes a consensus Moderate Buy rating and an average target price of $27.50.
• The company beat earnings expectations in its latest quarter, reporting $0.38 EPS versus the expected $0.32 and $147.11 million in revenue versus $134.69 million forecast.
• Insider and institutional activity has been active: Chairman H. Sanford Riley bought shares, while other insiders sold, and several hedge funds increased their positions in the stock.

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

PMTS has been the topic of a number of other research reports. Lake Street Capital reaffirmed a "buy" rating and set a $27.00 target price on shares of CPI Card Group in a research note on Wednesday, May 6th. DA Davidson reissued a "buy" rating and set a $30.00 price target on shares of CPI Card Group in a research note on Tuesday, July 7th. Weiss Ratings upgraded CPI Card Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, June 1st. Zacks Research downgraded CPI Card Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, Roth Capital reiterated a "buy" rating and issued a $25.00 target price on shares of CPI Card Group in a research note on Tuesday, May 5th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, CPI Card Group has an average rating of "Moderate Buy" and an average target price of $27.50.

CPI Card Group Trading Down 0.4%

PMTS stock opened at $19.52 on Friday. CPI Card Group has a 12 month low of $10.81 and a 12 month high of $21.57. The company has a 50-day moving average price of $18.50 and a 200 day moving average price of $15.97. The stock has a market cap of $224.09 million, a PE ratio of 19.14 and a beta of 1.03.

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

Insider Activity at CPI Card Group

In other news, Chairman H Sanford Riley acquired 5,400 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average price of $16.00 per share, with a total value of $86,400.00. Following the completion of the purchase, the chairman directly owned 5,400 shares in the company, valued at $86,400. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Donna Abbey Carmignani sold 4,870 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $15.32, for a total value of $74,608.40. Following the transaction, the insider owned 5,478 shares in the company, valued at $83,922.96. The trade was a 47.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.80% of the company's stock.

Hedge Funds Weigh In On CPI Card Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Wasatch Advisors LP increased its stake in shares of CPI Card Group by 56.3% during the second quarter. Wasatch Advisors LP now owns 357,754 shares of the company's stock valued at $8,486,000 after buying an additional 128,808 shares during the period. Vector Capital Management L.P. lifted its stake in CPI Card Group by 18.6% in the third quarter. Vector Capital Management L.P. now owns 459,314 shares of the company's stock worth $6,954,000 after acquiring an additional 71,891 shares during the period. Pacific Ridge Capital Partners LLC grew its holdings in CPI Card Group by 13.1% during the 4th quarter. Pacific Ridge Capital Partners LLC now owns 442,464 shares of the company's stock worth $6,495,000 after acquiring an additional 51,139 shares in the last quarter. Aristeia Capital L.L.C. bought a new position in CPI Card Group during the 4th quarter worth about $597,000. Finally, Monimus Capital Management LP increased its position in CPI Card Group by 131.2% during the 4th quarter. Monimus Capital Management LP now owns 67,257 shares of the company's stock valued at $987,000 after purchasing an additional 38,170 shares during the period. Institutional investors own 22.08% of the company's stock.

About CPI Card Group

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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