Denesh Bharwani, Executive Vice President of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), recently sold 31,717 shares of the company's common stock. The transaction, which took place on November 6, 2024, was executed at a weighted average price of $10.97 per share, totaling approximately $347,935.
Following this sale, Bharwani retains direct ownership of 292,638 shares in the company. The shares were sold in multiple transactions, with prices ranging from $10.95 to $11.00. Bharwani has committed to providing detailed information on the number of shares sold at each price upon request.
In other recent news, Consumer Portfolio Services has announced key financial developments. The company has expanded its credit facility from $200 million to $225 million, a move aimed at bolstering its auto loan financing business. This amendment to the revolving credit agreement, which has been in place since 2012, was disclosed in a recent SEC filing.
In the earnings realm, Consumer Portfolio Services reported a 9% year-over-year increase in revenues for the third quarter of 2024, reaching $100.6 million. Despite a decrease in pre-tax earnings and net income, the company also saw a 38% surge in origination volume, contributing to year-to-date revenues of $288.2 million.
Further, the company's fair value portfolio grew to $3.1 billion, with an 11.3% yield. Operational improvements were also noted, including reduced funding times and the successful integration of AI-driven tools. These recent developments underscore the company's focus on operational efficiency and credit performance.
Looking ahead, Consumer Portfolio Services expressed confidence in its performance for the upcoming year, with plans to leverage technology to boost efficiencies and reduce fraud losses. These updates highlight the company's resilience and strategic focus in a competitive market.
InvestingPro Insights
While Denesh Bharwani's recent stock sale might raise eyebrows, it's essential to consider Consumer Portfolio Services, Inc. (NASDAQ:CPSS) in a broader context. According to InvestingPro data, CPSS has a market capitalization of $228.13 million and trades at a price-to-earnings ratio of 11.03, suggesting a relatively modest valuation compared to industry peers.
Interestingly, CPSS has shown strong performance in recent months. InvestingPro Tips highlight significant returns over the last week (10.69%), month (16.88%), and three months (29.74%). This upward momentum aligns with the timing of Bharwani's sale, potentially indicating a strategic decision to capitalize on the stock's recent gains.
Despite the positive stock performance, it's worth noting that revenue growth has been negative, with a -18.52% decline in the last twelve months as of Q3 2024. This contrasts with the InvestingPro Tip indicating that analysts anticipate sales growth in the current year, suggesting a potential turnaround in the company's financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CPSS, providing a deeper understanding of the company's financial health and market position.
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