Parallel49 Equity, a significant shareholder in CPI Card Group Inc . (NASDAQ:PMTS (TSX:PMTS)), has sold a portion of its holdings in the company. The transaction, which took place on April 5, 2024, involved the sale of 244,314 shares at an average price of $18.026 per share, resulting in a total sale value of over $4.4 million.
The shares were sold under a stock repurchase agreement dated December 6, 2023, between Parallel49 Equity and CPI Card Group. Following the sale, Parallel49 Equity's affiliated funds, Tricor Pacific Capital Partners (Fund IV), LP and Tricor Pacific Capital Partners (Fund IV) U.S., LP, collectively hold a reduced stake in the company.
Specifically, Tricor Pacific Capital Partners (Fund IV), LP sold 153,631 of the shares, leaving it with a holding of 3,970,737 shares in CPI Card Group. Meanwhile, Tricor Pacific Capital Partners (Fund IV) U.S., LP sold 90,683 shares, and now holds 2,343,774 shares.
The sale was managed by the investment committee of the Tricor Funds, which is overseen by Parallel49 Equity, ULC. The committee members, including Bradley Seaman, David Rowntree, J. Trevor Johnstone, and Roderick Senft, have stated that they do not have beneficial ownership of the shares sold.
CPI Card Group, with its headquarters in Littleton, Colorado, specializes in commercial printing and is known for its production of financial card products and related services.
Investors in CPI Card Group will likely monitor these transactions closely, as sales by significant shareholders can have implications for the company's stock performance. The recent sale by Parallel49 Equity represents a noteworthy adjustment to its investment in CPI Card Group, signaling a shift in the company's ownership landscape.
InvestingPro Insights
Following the recent sale by Parallel49 Equity, investors are keeping a keen eye on CPI Card Group Inc. (NASDAQ:PMTS). The market is reacting to the evolving dynamics within the company's ownership structure. To provide further context, here are some insights based on the latest data and InvestingPro Tips.
InvestingPro Data reveals that CPI Card Group currently has a Market Cap of approximately $202.82M. The company's P/E Ratio stands at a modest 8.77, indicating a potentially undervalued stock when compared to industry peers. Additionally, the P/E Ratio (adjusted) for the last twelve months as of Q4 2023 is 8.55, further highlighting the stock's attractive valuation metrics.
From a performance standpoint, CPI Card Group has seen a strong return over the last month, with a 1 Month Price Total Return as of April 2024 at 12.56%. This could signal a positive short-term momentum for the stock, which may interest investors looking for growth opportunities.
InvestingPro Tips suggest that CPI Card Group has a high shareholder yield and a valuation that implies a strong free cash flow yield. These factors are particularly relevant for investors who prioritize return on investment and the company's ability to generate cash. Moreover, analysts predict that CPI Card Group will be profitable this year, which could offer reassurance to investors concerned about the company's earning potential.
For those considering a deeper dive into CPI Card Group's financial health and future prospects, InvestingPro offers a wealth of additional tips. There are currently 9 more InvestingPro Tips available, providing a comprehensive analysis of the company's performance and potential investment opportunities. To enhance your research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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