Christopher Terry, Executive Vice President at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), has recently sold 10,000 shares of the company's common stock. The transaction, dated November 12, 2024, was executed at a price of $10.16 per share, resulting in a total value of $101,600. Following this sale, Terry retains ownership of 203,656 shares in the company.
In other recent news, Consumer Portfolio Services (CPS) has reported notable developments. The California-based finance company has expanded its credit facility from $200 million to $225 million, according to a recent SEC filing. This amendment, managed by Citibank, N.A., is designed to support CPS's auto loan financing business.
On the financial performance front, CPS recorded a 9% increase in revenues year-over-year in the third quarter of 2024, reaching $100.6 million, along with a 38% rise in origination volume. However, pre-tax earnings and net income demonstrated a decline, settling at $6.9 million and $4.8 million, respectively.
Despite these mixed results, CPS expressed optimism for its future, highlighting operational improvements such as reduced funding times, increased same-day funding, and the successful integration of AI-driven tools. The company's fair value portfolio also grew to $3.1 billion with an 11.3% yield. These recent developments reflect CPS's strategic focus on operational efficiency and credit performance.
InvestingPro Insights
The recent insider sale by Christopher Terry comes at a time when Consumer Portfolio Services, Inc. (NASDAQ:CPSS) is experiencing some notable financial trends. According to InvestingPro data, CPSS has a market capitalization of $221.54 million and is trading at a P/E ratio of 10.41, suggesting a relatively modest valuation compared to its earnings.
InvestingPro Tips highlight that CPSS has shown a strong return over the last three months, with price data confirming a 20.28% total return over this period. This short-term performance is part of a broader trend, as the stock has seen a significant 26.7% price increase over the past six months. These positive movements may have influenced the timing of Terry's decision to sell a portion of his holdings.
Despite the recent stock price appreciation, CPSS is trading at a price-to-book ratio of 0.76, indicating that the stock might be undervalued relative to its book value. This could be of interest to value investors looking for potential opportunities in the financial services sector.
It's worth noting that while analysts anticipate sales growth for CPSS in the current year, they also expect net income to drop. This mixed outlook may explain why insiders like Terry are making strategic decisions about their stock holdings.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for CPSS, providing a deeper understanding of the company's financial health and market position.
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