Charles E. Bradley Jr., the CEO of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), recently sold shares of the company's stock, according to a new SEC filing. On September 10, 2024, Bradley sold a total of 70,000 shares at a price of $9.85 each, amounting to a total transaction value of $689,500.
The sale was part of a planned transaction and was publicly disclosed in a Form 4 document filed with the Securities and Exchange Commission. Following the sale, Bradley still owns a significant number of shares in the company, with a reported 3,720,092 shares remaining in his possession.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the financial health and future prospects of their companies. The sale by Bradley might attract attention from the investment community, considering his role as CEO and his remaining stake in Consumer Portfolio Services.
The company, headquartered in Irvine, California, operates in the financial services industry, specializing in automotive finance for consumers across the United States. It is known for providing financing solutions through its network of automobile dealers.
Consumer Portfolio Services has not released any official statement regarding the transaction, and it remains unclear what prompted the CEO to reduce his holdings at this time. Shareholders and potential investors in Consumer Portfolio Services are encouraged to review the SEC filings to better understand the context of such insider transactions.
In other recent news, Consumer Portfolio Services (CPS) reported significant growth in its Q2 earnings call. The auto finance company detailed a 5% quarter-over-quarter revenue increase, reaching $95.9 million, and a 13% year-over-year rise. CPS also experienced a 25% surge in origination volume, hitting $431.9 million. Despite increased expenses, CPS managed to achieve a pretax income of $6.7 million and a net income of $4.7 million for the quarter.
These developments come as CPS expands its sales team and dealer base, focusing on growth and implementing AI technologies to improve operations. The company is optimistic about its 2024 portfolio performance, preparing for declining interest rates and maintaining a robust cash position for future opportunities. However, it's worth noting that CPS recorded an increase in DQ greater than 30 days and annualized net charge-offs compared to the same quarter of the previous year.
CPS has also successfully renegotiated and renewed four out of five leases, reducing occupancy costs, and is making efforts to enhance customer service to dealerships. This, along with the use of AI technology to expedite deals and prevent fraud, highlights the company's strategic focus on growth and technological advancement. These are the latest developments in the company's journey, and CPS remains confident in its industry performance and economic outlook.
InvestingPro Insights
As investors digest the news of CEO Charles E. Bradley Jr.'s recent stock sale in Consumer Portfolio Services, Inc. (NASDAQ:CPSS), current metrics and insights from InvestingPro may offer a broader context for the company's financial landscape. With a market capitalization of $200.9 million and a notably low price-to-earnings (P/E) ratio of 7.35, CPSS presents an interesting valuation scenario. The P/E ratio slightly increased to 7.49 when looking at the last twelve months as of Q2 2024, suggesting a consistent valuation over recent periods.
InvestingPro data also reveals that CPSS has experienced a significant return over the last week, with a 10.62% price total return, and an even stronger return over the last month at 17.91%. This performance could be a reflection of market sentiment or reactions to broader industry trends. Additionally, the company's liquid assets exceed its short-term obligations, which is an important indicator of financial stability and may reassure investors of the company's ability to meet its immediate liabilities.
Two InvestingPro Tips worth noting for CPSS include analysts' anticipation of sales growth in the current year and their prediction that the company will be profitable this year. These insights, alongside the fact that CPSS has been profitable over the last twelve months, could provide a counterbalance to concerns raised by the CEO's stock sale. For those looking for more in-depth analysis, there are additional InvestingPro Tips available, offering a comprehensive view of the company's financial health and outlook.
While the CEO's sale of shares might raise questions, the data and insights from InvestingPro suggest that Consumer Portfolio Services still maintains a solid financial position with potential for continued growth. Potential investors and shareholders should consider these metrics alongside the SEC filings to form a more complete picture of the company's financial trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.