Insider Selling: CPI Card Group (NASDAQ:PMTS) Major Shareholder Sells $54,914,226.03 in Stock

Key Points

• Major shareholder Equity Ulc Parallel49 sold 2.69 million CPI Card Group shares for approximately $54.9 million at an average price of $20.43, a transaction disclosed in an SEC filing.
• The sale occurred alongside a secondary offering by existing shareholders, which does not raise capital for CPI Card Group but may increase the public float and trading liquidity while creating potential selling pressure.
• Despite the large disposition, analysts remain generally positive: CPI Card Group has a “Moderate Buy” consensus rating and an average price target of $30.25, compared with shares trading at $24.26.

CPI Card Group Inc. (NASDAQ:PMTS - Get Free Report) major shareholder Equity Ulc Parallel49 sold 2,687,921 shares of CPI Card Group stock in a transaction on Monday, September 14th. The shares were sold at an average price of $20.43, for a total value of $54,914,226.03. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Large shareholders that own at least 10% of a company's stock are required to disclose their transactions with the SEC.

CPI Card Group Price Performance

Shares of PMTS stock traded up $1.76 during trading hours on Monday, reaching $24.26. 612,736 shares of the stock were exchanged, compared to its average volume of 162,742. The business's fifty day moving average is $24.52 and its two-hundred day moving average is $19.43. The firm has a market capitalization of $279.72 million, a P/E ratio of 21.10 and a beta of 0.97. CPI Card Group Inc. has a 12-month low of $10.81 and a 12-month high of $31.25.

Key CPI Card Group News

Here are the key news stories impacting CPI Card Group this week:

• Positive Sentiment: Company insiders made approximately $671,500 in combined purchases at $21.50 per share. Chairman H. Riley, directors Nicholas Peters and Ravi Mallela, and director Marc Sheinbaum all increased their holdings, signaling confidence in CPI Card Group’s valuation and prospects. Insider purchase filing
• Neutral Sentiment: CPI Card Group completed a secondary public share offering involving existing stockholders. Because the shares were sold by current holders rather than issued by the company, the transaction does not directly raise capital for CPI Card Group, but it can increase the public float and improve trading liquidity. Secondary share offering announcement
• Negative Sentiment: Major shareholder Equity Ulc Parallel49 sold 2.69 million PMTS shares for approximately $54.9 million at an average price of $20.43. The sizable disposition may create an overhang or raise concerns about a large investor reducing its exposure, although it also expands the stock’s available float. Parallel49 SEC filing

Institutional Investors Weigh In On CPI Card Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Ancora Advisors LLC purchased a new stake in shares of CPI Card Group in the 2nd quarter valued at about $41,000. California State Teachers Retirement System grew its stake in CPI Card Group by 453.8% during the 2nd quarter. California State Teachers Retirement System now owns 2,265 shares of the company's stock worth $47,000 after buying an additional 1,856 shares during the last quarter. Lazard Asset Management LLC acquired a new position in CPI Card Group during the first quarter worth approximately $157,000. Janney Montgomery Scott LLC increased its position in CPI Card Group by 10.1% during the first quarter. Janney Montgomery Scott LLC now owns 14,736 shares of the company's stock worth $214,000 after buying an additional 1,346 shares during the period. Finally, Potomac Capital Management Inc. purchased a new stake in CPI Card Group in the fourth quarter valued at approximately $337,000. 22.08% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. B. Riley Financial reaffirmed a "buy" rating on shares of CPI Card Group in a research report on Friday, August 7th. Wall Street Zen raised CPI Card Group from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 25th. DA Davidson raised their price target on CPI Card Group from $30.00 to $34.00 and gave the company a "buy" rating in a research note on Tuesday, August 11th. Weiss Ratings raised CPI Card Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Finally, Roth Capital reaffirmed a "buy" rating and set a $32.00 price objective on shares of CPI Card Group in a research report on Tuesday, August 11th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $30.25.

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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