Insider Spends US$65k Buying More Shares In CPI Card Group

Whilst it may not be a huge deal, we thought it was good to see that the CPI Card Group Inc. (NASDAQ:PMTS) Independent Chair, H. Riley, recently bought US$65k worth of stock, for US$32.51 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 18%.

Check out our latest analysis for CPI Card Group

The Last 12 Months Of Insider Transactions At CPI Card Group

The Chief Human Resources Officer, Sonya Vollmer, made the biggest insider sale in the last 12 months. That single transaction was for US$92k worth of shares at a price of US$25.10 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$32.74. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 100% of Sonya Vollmer's stake. Sonya Vollmer was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 4.59k shares worth US$133k. But insiders sold 3.66k shares worth US$92k. In total, CPI Card Group insiders bought more than they sold over the last year. They paid about US$29.09 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.8% of CPI Card Group shares, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. Insiders own shares in CPI Card Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CPI Card Group. Our analysis shows 4 warning signs for CPI Card Group (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

But note: CPI Card Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.