Riley H. Sanford, a director at CPI Card Group Inc . (NASDAQ:PMTS (TSX:PMTS)), recently increased his stake in the company by purchasing additional shares. The company, currently valued at $376 million, has shown remarkable strength with an 88% return over the past year. According to InvestingPro analysis, management has been actively buying back shares, indicating strong insider confidence. According to a recent SEC filing, Sanford acquired 2,000 shares of common stock on December 2, 2024, at a price of $32.51 per share, amounting to a total purchase value of $65,019. This transaction was conducted indirectly through 10031696 Manitoba Ltd. Following this purchase, Sanford's total shares held rose significantly, demonstrating his continued investment interest in the company. The stock is currently trading near its 52-week high of $33.87, with InvestingPro offering 10+ additional insights about the company's valuation and growth prospects.
In other recent news, CPI Card Group has been making significant strides in its financial performance. DA Davidson initiated coverage on the company, setting a bullish price target of $36. This positive outlook is attributed to the company's expanding market share in the U.S., beneficial industry trends, and the expectation of high single-digit growth in both adjusted EBITDA and free cash flow.
In addition, CPI Card Group demonstrated a robust third quarter performance in 2024, marking its second-largest sales quarter ever. The company's net sales and adjusted EBITDA increased nearly 20%, driven by a 25% surge in product sales, particularly in eco-friendly contactless cards. This strong performance led the company to raise its full-year outlook, indicating optimism for the future.
Despite a 66% drop in net income due to debt refinancing costs, the company anticipates stronger performance in the fourth quarter of 2024. It expects mid to high single-digit net sales growth and low single-digit adjusted EBITDA growth for the full year. Furthermore, CPI Card Group plans to open a new production facility in Indiana by mid-2025, which is expected to enhance its capacity and efficiency. These are the recent developments in the journey of CPI Card Group.
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