Consumer portfolio services exec sells $90k in stock

John Patrick Harton, the Senior Vice President of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), has recently sold a total of $90,000 worth of the company's common stock. The transaction took place on September 6, 2024, with the shares being sold at a price of $9.00 each.

The sale by Harton, who is an officer of the company but not a director or ten percent owner, involved 10,000 shares of Consumer Portfolio Services' common stock. Following the transaction, Harton still owns 265,604 shares directly. The sale was executed as a standard disposition of shares and was reported in a regulatory filing dated September 9, 2024.

Consumer Portfolio Services, based in Irvine, California, operates in the finance services industry and is known for providing indirect automobile financing to individuals with past credit problems, low incomes, or limited credit histories. This recent stock transaction by a senior executive might be of interest to current and prospective investors, as it reflects a change in the insider's stake in the company.

The company's stock is traded on the NASDAQ Stock Market under the ticker symbol CPSS, and as of the date of the reported transaction, the stock was sold at $9.00 per share, totaling $90,000 for the sale. It is worth noting that the remaining shares held by Harton represent a significant investment in the company, indicating a continued vested interest in its performance.

Investors often monitor such insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is essential to consider that insider sales can occur for various reasons and may not necessarily reflect a negative outlook.

In other recent news, Consumer Portfolio Services (CPS) has reported a significant uptick in its revenue and origination volume for the second quarter of 2024. The company's revenue rose by 5% to $95.9 million from the previous quarter and saw a 13% increase year-over-year. CPS also reported a 25% surge in its origination volume, reaching $431.9 million. Despite an increase in expenses, the auto finance company achieved a pretax income of $6.7 million and a net income of $4.7 million for the quarter.

CPS's strategic focus on business growth, expanding sales teams, and dealer base enhancement, along with the implementation of AI technologies, has positioned the company for optimistic portfolio performance in 2024. These are recent developments in the company's business trajectory. However, it is important to note that the company has seen an increase in expenses, up by 5% to $89.2 million.

CPS has also successfully renegotiated and renewed four out of five leases, reducing occupancy costs. The company is making efforts to increase customer service to dealerships and is using AI technology to expedite deals and prevent fraud. These developments have been highlighted in recent analyst notes.

InvestingPro Insights

As investors digest the news of John Patrick Harton's recent sale of Consumer Portfolio Services stock, it's worth taking a closer look at the company's financial health and market performance through the lens of InvestingPro data and insights. With a market capitalization of $200.05 million and a notably low price-to-earnings (P/E) ratio of 7.39 based on the last twelve months as of Q2 2024, CPSS presents an interesting valuation case for investors.

The company's stock price has experienced significant volatility, as indicated by a 12.86% return over the last week and a 13.0% return over the last month. Such movements may attract investors looking for short-term gains, but they also highlight the need for careful risk assessment. On the upside, CPSS's liquid assets exceed its short-term obligations, suggesting financial stability in terms of liquidity.

InvestingPro Tips also shed light on the company's prospects. Analysts anticipate sales growth in the current year, which, combined with the prediction that the company will remain profitable this year, could be seen as positive indicators for future performance. However, it's important to note that net income is expected to drop this year, which may warrant a cautious approach for those considering long-term investments.

For those interested in further analysis and metrics, InvestingPro provides additional insights. There are currently 9 more InvestingPro Tips available for CPSS on the platform, offering a more comprehensive overview of the company's financial landscape and potential investment strategies. To explore these tips and gain a deeper understanding of Consumer Portfolio Services' performance, visit https://www.investing.com/pro/CPSS.

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