Insider Spends US$300k Buying More Shares In CPI Card Group
Investors who take an interest in CPI Card Group Inc. (NASDAQ:PMTS) should definitely note that the Independent Chair, Hugh Riley, recently paid US$21.50 per share to buy US$300k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.2%.
The Last 12 Months Of Insider Transactions At CPI Card Group
In fact, the recent purchase by Independent Chair Hugh Riley was not their only acquisition of CPI Card Group shares this year. Earlier in the year, they paid US$13.51 per share in a US$2.7m purchase. We do like to see buying, but this purchase was made at well below the current price of US$24.29. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 253.13k shares for US$3.7m. But they sold 4.87k shares for US$75k. Overall, CPI Card Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for CPI Card Group
CPI Card Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of CPI Card Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.7% of CPI Card Group shares, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The CPI Card Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in CPI Card Group shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that CPI Card Group has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
But note: CPI Card Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.