In recent transactions disclosed by Consumer Portfolio Services, Inc. (NASDAQ:CPSS), Director Daniel S. Wood sold a total of 13,000 shares over three consecutive days, from November 20 to November 22. The sales were executed at weighted average prices ranging from $10.38 to $10.49 per share, amounting to a total transaction value of $135,860.
On November 20, Wood sold 3,000 shares at an average price of $10.38 per share. The following day, November 21, he sold an additional 2,000 shares at an average price of $10.40. The largest transaction occurred on November 22, with the sale of 8,000 shares at an average price of $10.49 per share. After these transactions, Wood holds 186,910 shares of the company.
In other recent news, Consumer Portfolio Services (CPS) has seen significant developments. The company reported a 9% year-over-year increase in revenues for the third quarter of 2024, reaching $100.6 million. Despite a decrease in pre-tax earnings and net income to $6.9 million and $4.8 million, respectively, CPS's origination volume surged by 38%.
In addition to financial performance, CPS shareholders approved board appointments and executive pay at a recent meeting. The nine-member board of directors was re-elected, and the company's executive compensation was ratified. CPS also expanded its credit facility from $200 million to $225 million, an amendment facilitated by Citibank, N.A.
The company has made operational improvements, including reducing funding times and increasing same-day funding, and successfully integrated AI-driven tools. Looking forward, CPS plans to focus on technology to boost efficiencies and reduce fraud losses. These are recent developments that reflect the company's strategic direction and governance.
InvestingPro Insights
As Director Daniel S. Wood reduces his stake in Consumer Portfolio Services, Inc. (NASDAQ:CPSS), investors might be curious about the company's current financial standing and future prospects. According to InvestingPro data, CPSS has a market capitalization of $224.11 million and a price-to-earnings (P/E) ratio of 10.5, suggesting a relatively modest valuation compared to the broader market.
Despite the recent insider selling, there are some positive indicators for CPSS. An InvestingPro Tip highlights that the company has shown a strong return over the last three months, with price data confirming a 22.96% total return in this period. This short-term performance outpaces the company's one-year return of 8.99%, indicating recent positive momentum.
Another InvestingPro Tip notes that CPSS's liquid assets exceed its short-term obligations, suggesting a solid financial position. This could be reassuring for investors concerned about the company's ability to meet its near-term financial commitments.
It's worth noting that while the company has been profitable over the last twelve months, with a diluted EPS of $0.87, analysts expect net income to drop this year. This forecast, combined with the insider selling, might warrant closer attention from investors.
For a more comprehensive analysis, InvestingPro offers additional tips and insights on CPSS, with a total of 8 tips available to subscribers. These tips could provide valuable context for understanding the recent insider transactions and the company's overall financial health.
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