BOCA RATON, FL—Cimpress plc (NASDAQ:CMPR) has seen a significant divestment by its shareholders, according to a recent SEC filing. On November 7, several major investors, including Prescott General Partners LLC, Thomas W. Smith, and Scott J. Vassalluzzo, sold a collective total of 316,056 ordinary shares at a consistent price of $79.10 per share. The transactions, which totaled approximately $25 million, were carried out through various investment entities associated with the shareholders.
Prescott Associates L.P., Prescott International Partners L.P., Idoya Partners L.P., and the Prescott Investors Profit Sharing Trust were among the entities involved in the sales. Post-transaction, these entities still hold significant shares, with Prescott Associates L.P. retaining 2,636,492 shares, and Idoya Partners L.P. holding 873,610 shares.
These transactions reflect strategic moves by the shareholders, who remain significant stakeholders in Cimpress. The shares are held indirectly, with ownership attributed to the partnerships and trusts involved. The filing notes that the reporting persons disclaim beneficial ownership beyond their pecuniary interests.
Cimpress plc, known for its commercial printing services, continues to be a focal point for investors, with this recent activity highlighting the dynamic nature of its shareholder base.
In other recent news, Cimpress N.V., a global leader in mass customization, has demonstrated steady growth and strategic investments in its first quarter of fiscal year 2025. Truist Securities revised its stock price target for Cimpress to $110.00, down from the previous $120.00, while maintaining a Buy rating. The company's first-quarter financial results highlighted a robust performance from its Vista brand and modest growth from its Upload and Print segment. Cimpress's consolidated revenue grew by 6%, and it achieved an adjusted EBITDA of $88 million. High-value segments, specifically flexible and corrugated packaging, are experiencing over 25% annual growth.
Despite a slight decline in North American business card sales, Cimpress has maintained strong growth investments and delivered a cash flow performance of approximately $10 per diluted share from the last fiscal year. Share repurchases totaling $168 million over the past year signal the company's confidence in future growth and shareholder value. Cimpress remains optimistic about achieving new revenue and profit records for fiscal year 2025, preparing for the holiday season and potential impacts from the U.S. election. The company's strategic plans and focus on high-value segments position it well for the remainder of the fiscal year.
InvestingPro Insights
The recent divestment by major Cimpress plc (NASDAQ:CMPR) shareholders takes on added significance when viewed alongside key financial metrics and expert insights. According to InvestingPro data, Cimpress boasts a market capitalization of $1.99 billion, with a price-to-earnings ratio of 13.08, suggesting the stock may be reasonably valued relative to its earnings.
Interestingly, while some shareholders are selling, InvestingPro Tips reveal that management has been aggressively buying back shares, indicating confidence in the company's future prospects. This buyback activity contributes to a high shareholder yield, potentially offsetting the impact of the recent share sales.
Cimpress's financial health appears robust, with the company reporting impressive gross profit margins of 48.53% for the last twelve months as of Q1 2023. This strength in profitability is further underscored by a revenue of $3.34 billion over the same period, representing a growth of 6.57%.
It's worth noting that while Cimpress demonstrates solid financial performance, the stock price movements are quite volatile, as highlighted by another InvestingPro Tip. This volatility may explain the strategic timing of the share sales by major investors.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Cimpress. These tips could provide valuable context for understanding the company's financial position and future outlook in light of recent shareholder activities.
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