William B. Roberts, a director at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), recently sold a total of 25,000 shares of common stock across three transactions. The sales, which took place on November 21, 22, and 25, were executed at prices ranging from $10.3147 to $10.644 per share, resulting in a total transaction value of $262,621.
Following these transactions, Roberts' direct ownership in the company stands at 745,078 shares. The sales were made in multiple transactions, with varying prices within specified ranges. Roberts has committed to providing detailed information about the number of shares sold at each price upon request.
In other recent news, Consumer Portfolio Services (CPS) has reported significant developments. At the company's annual shareholder meeting, the re-election of the nine-member board of directors and the ratification of executive compensation were approved. The appointment of Crowe LLP as the independent auditors for the fiscal year ending December 31, 2024, was also ratified.
In addition to these governance matters, CPS expanded its credit facility from $200 million to $225 million, facilitated by Citibank, N.A. This strategic financial move is expected to strengthen the company's auto loan financing business.
Moreover, CPS reported a robust financial performance for the third quarter of 2024, with revenues increasing 9% year-over-year to $100.6 million and origination volume surging by 38%. However, the company saw a decline in pre-tax earnings and net income to $6.9 million and $4.8 million, respectively.
The company also highlighted operational improvements such as reduced funding times and increased same-day funding, along with the successful integration of AI-driven tools. Despite a slight increase in annualized net charge-offs, CPS's fair value portfolio grew to $3.1 billion with an 11.3% yield. Looking ahead, CPS plans to leverage technology to enhance efficiencies and reduce fraud losses. These developments reflect the company's strategic focus on operational efficiency and credit performance.
InvestingPro Insights
As William B. Roberts reduces his stake in Consumer Portfolio Services, Inc. (NASDAQ:CPSS), investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, CPSS has a market capitalization of $227.32 million and trades at a price-to-earnings ratio of 10.67, suggesting a relatively modest valuation compared to the broader market.
The company's stock has shown strong momentum recently, with InvestingPro reporting a 26.31% price return over the past three months and a 30.34% return over the last six months. This positive trend aligns with one of the InvestingPro Tips, which highlights CPSS's strong return over the last three months.
Despite the director's recent stock sales, another InvestingPro Tip indicates that analysts anticipate sales growth for CPSS in the current year. This projection could provide some reassurance to investors concerned about the insider selling activity. Additionally, the company's price-to-book ratio of 0.79 suggests that the stock may be undervalued relative to its book value.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for CPSS, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable when assessing the implications of insider transactions like Roberts' recent sales.
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