Breaking News: CEO of Consumer Portfolio Services, Inc. Sells $689,500 Worth of Stock - What Does This Mean for Investors?
In a recent SEC filing, Charles E. Bradley Jr., the CEO of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), disclosed that he sold 70,000 shares of the company's stock at $9.85 each, totaling $689,500. Despite this sale, Bradley still retains 3,720,092 shares in the company, raising questions about his outlook on CPSS's financial health and future prospects.
Consumer Portfolio Services, based in Irvine, California, specializes in automotive finance for consumers nationwide, offering financing solutions through automobile dealers. The recent stock sale by Bradley, a significant figure in the company, has caught the attention of investors who monitor insider transactions for insights into executives' views on their companies.
In other news, CPSS reported strong growth in its Q2 earnings, with a 5% increase in revenue quarter-over-quarter and a 13% rise year-over-year. The company also saw a 25% surge in origination volume and achieved a pretax income of $6.7 million. However, there were concerns about an increase in DQ greater than 30 days and net charge-offs compared to the previous year.
InvestingPro Insights:
- CPSS has a market capitalization of $200.9 million and a low P/E ratio of 7.35, indicating an interesting valuation scenario.
- The company has experienced significant price returns over the last week and month, reflecting market sentiment.
- Analysts anticipate sales growth and profitability for CPSS this year, providing a positive outlook despite the CEO's stock sale.
While Bradley's stock sale may raise doubts, data from InvestingPro suggests that CPSS remains financially stable with growth potential. Investors should consider these metrics alongside SEC filings to evaluate the company's trajectory and make informed decisions about their investments.