William B. Roberts, a director at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), recently sold a total of 100,000 shares of the company's common stock over two days, according to a recent SEC filing. The transactions, executed on November 11 and 12, were completed at a weighted average price range of $10.46 to $10.76 per share, amounting to a total value of approximately $1.06 million.
Following these sales, Roberts holds 800,078 shares directly. The sales were carried out in multiple transactions, with specific prices ranging from $10.38 to $10.91 on the respective days. 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, Inc. has seen significant financial developments. The company reported a solid financial performance for the third quarter of 2024, with revenues increasing by 9% year-over-year to $100.6 million. This, along with a 38% surge in origination volume, contributed to year-to-date revenues of $288.2 million. However, pre-tax earnings and net income declined to $6.9 million and $4.8 million, respectively.
In the same period, the company expanded its credit facility from $200 million to $225 million, a strategic move to support its auto loan financing business. This amendment was disclosed in a recent SEC filing and is effective as of November 1, 2024. The terms of this credit facility are contingent on various factors, including the performance of the receivables and future securitization transactions.
Furthermore, the company highlighted operational improvements such as reduced funding times, increased same-day funding, and the successful integration of AI-driven tools. Despite a slight increase in annualized net charge-offs, the company's fair value portfolio grew to $3.1 billion with an 11.3% yield. These are recent developments reflecting the company's strategic focus on operational efficiency and credit performance.
InvestingPro Insights
In light of William B. Roberts' recent stock sale, it's worth examining Consumer Portfolio Services, Inc. (NASDAQ:CPSS) through the lens of current market data and expert analysis. According to InvestingPro, CPSS has a market capitalization of $217.26 million, with a price-to-earnings (P/E) ratio of 10.23, suggesting the stock may be reasonably valued relative to its earnings.
InvestingPro Tips highlight that CPSS has shown a strong return over the last three months, which aligns with the timing of Roberts' stock sale. This could indicate that the director may be capitalizing on recent gains. Additionally, the company's stock price movements are noted to be quite volatile, which investors should consider when evaluating the significance of insider transactions.
Another relevant InvestingPro Tip points out that CPSS's liquid assets exceed short-term obligations, indicating a solid financial position. This financial stability could provide some reassurance to investors in light of the director's stock sale.
It's important to note that InvestingPro offers 10 additional tips for CPSS, providing a more comprehensive analysis for investors seeking deeper insights into the company's prospects and challenges.
The recent stock performance shows a 20.34% price total return over the past three months, despite a 11.17% decline in the past week. This volatility underscores the importance of considering longer-term trends and fundamental analysis when interpreting insider transactions.
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