Stock Analysis

Chief Human Resources Officer Of CPI Card Group Sold 100% Of Their Shares

NasdaqGM:PMTS
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Investors may wish to note that the Chief Human Resources Officer of CPI Card Group Inc., Sonya Vollmer, recently netted US$92k from selling stock, receiving an average price of US$25.10. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

Check out our latest analysis for CPI Card Group

The Last 12 Months Of Insider Transactions At CPI Card Group

Notably, that recent sale by Sonya Vollmer is the biggest insider sale of CPI Card Group shares that we've seen in the last year. That means that even when the share price was below the current price of US$25.70, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Sonya Vollmer's holding.

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!

insider-trading-volume
NasdaqGM:PMTS Insider Trading Volume September 19th 2024

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of CPI Card Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.9% of CPI Card Group shares, worth about US$8.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At CPI Card Group Tell Us?

Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of CPI Card Group insider transactions. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CPI Card Group. Be aware that CPI Card Group is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.