Consumer Portfolio Services (NASDAQ:CPSS) Share Price Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Consumer Portfolio Services shares moved above their 200-day moving average, reaching $9.45 before last trading at $9.13, compared with a 200-day average of $9.23.
• Analyst sentiment remains cautious: Weiss Ratings upgraded the stock to “Hold,” while Wall Street Zen downgraded it to “Hold,” producing a consensus “Hold” rating.
• Insiders sold 137,500 shares worth approximately $1.3 million over the past 90 days, while institutional ownership stands at 47.57%; the company last reported quarterly EPS of $0.27 on $57.14 million in revenue.

Consumer Portfolio Services, Inc. (NASDAQ:CPSS - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $9.23 and traded as high as $9.45. Consumer Portfolio Services shares last traded at $9.13, with a volume of 24,287 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on CPSS shares. Weiss Ratings upgraded shares of Consumer Portfolio Services from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, September 14th. Wall Street Zen downgraded shares of Consumer Portfolio Services from a "buy" rating to a "hold" rating in a research report on Monday, October 5th. One equities research analyst has rated the stock with a Hold rating. Based on data from MarketBeat, the stock has a consensus rating of "Hold".

Consumer Portfolio Services Price Performance

The company has a quick ratio of 5.67, a current ratio of 5.67 and a debt-to-equity ratio of 10.43. The company has a 50 day simple moving average of $9.32 and a 200-day simple moving average of $9.23. The stock has a market cap of $199.99 million, a price-to-earnings ratio of 9.92 and a beta of 1.14.

Consumer Portfolio Services (NASDAQ:CPSS - Get Free Report) last issued its earnings results on Tuesday, August 4th. The credit services provider reported $0.27 EPS for the quarter. Consumer Portfolio Services had a return on equity of 6.91% and a net margin of 4.78%. The company had revenue of $57.14 million during the quarter.

Insider Buying and Selling

In related news, VP Catrina Marie Ralston sold 3,617 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $9.50, for a total transaction of $34,361.50. Following the transaction, the vice president directly owned 68,262 shares in the company, valued at $648,489. This trade represents a 5.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Charles Bradley, Jr. sold 125,000 shares of Consumer Portfolio Services stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $9.46, for a total transaction of $1,182,500.00. Following the completion of the transaction, the chief executive officer directly owned 4,099,545 shares of the company's stock, valued at approximately $38,781,695.70. This represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 137,500 shares of company stock worth $1,299,825 over the last ninety days. 63.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Empowered Funds LLC bought a new stake in shares of Consumer Portfolio Services during the 2nd quarter valued at about $1,456,000. BlackRock Inc. bought a new position in Consumer Portfolio Services in the second quarter worth about $6,297,000. Deutsche Bank AG bought a new position in Consumer Portfolio Services in the second quarter worth about $115,000. Bank of New York Mellon Corp acquired a new position in Consumer Portfolio Services in the second quarter valued at approximately $221,000. Finally, Janney Montgomery Scott LLC boosted its stake in Consumer Portfolio Services by 3.4% in the first quarter. Janney Montgomery Scott LLC now owns 51,003 shares of the credit services provider's stock valued at $394,000 after acquiring an additional 1,672 shares during the period. 47.57% of the stock is owned by institutional investors and hedge funds.

Consumer Portfolio Services Company Profile

Consumer Portfolio Services, Inc NASDAQ: CPSS is a specialty finance company that provides automobile financing to consumers, including borrowers who may have limited or impaired credit histories. The company primarily operates through an indirect lending model, purchasing retail installment sales contracts originated by automobile dealerships and providing financing for the purchase of new and used vehicles.

Consumer Portfolio Services funds its lending activities through a combination of debt financing and the securitization of automobile receivables.

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