Independent Director of CPI Card Group Marc Sheinbaum Buys 24% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the CPI Card Group Inc. (NASDAQ:PMTS) Independent Director, Marc Sheinbaum, recently bought US$51k worth of stock, for US$25.26 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 24%.

View our latest analysis for CPI Card Group

CPI Card Group Insider Transactions Over The Last Year

In fact, the recent purchase by Marc Sheinbaum was the biggest purchase of CPI Card Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$25.87. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Marc Sheinbaum was the only individual insider to buy shares in the last twelve months.

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!

CPI Card Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of CPI Card Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that CPI Card Group insiders own 2.7% of the company, worth about US$7.8m. 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 purchase. 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. 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 potentially serious...

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.