CPI Card Group Independent Chair Acquires 115% More Stock

Potential CPI Card Group Inc. (NASDAQ:PMTS) shareholders may wish to note that the Independent Chair, Hugh Riley, recently bought US$323k worth of stock, paying US$21.51 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 115%.

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CPI Card Group Insider Transactions Over The Last Year

Notably, that recent purchase by Hugh Riley is the biggest insider purchase of CPI Card Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$23.09. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for CPI Card Group share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$466k for 20.09k shares. On the other hand they divested 3.66k shares, for US$92k. In total, CPI Card Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for CPI Card Group

CPI Card Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.0% of CPI Card Group shares, worth about US$5.3m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The CPI Card Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on CPI Card Group stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for CPI Card Group (1 is a bit unpleasant!) that we believe deserve your full attention.

Of course CPI Card Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.