Lisa Oleson, a director at CPI Card Group Inc . (NASDAQ:PMTS (TSX:PMTS)), recently acquired shares in the company, according to a filing with the Securities and Exchange Commission. On November 27, Oleson purchased 585 shares of common stock at a price of $30.46 per share, totaling $17,819. The timing of this insider purchase is notable as the stock has delivered an impressive 78% return over the past year and is currently trading near its 52-week high of $33.69. According to InvestingPro analysis, the company shows good financial health with a score of 2.98 out of 5, though current technical indicators suggest the stock may be overbought.
Additionally, on November 29, Oleson was awarded 909 restricted stock units (RSUs). Each RSU represents the right to receive one common share upon vesting, which is scheduled for the first anniversary of the award date, contingent upon her continued service. Following these transactions, Oleson directly owns 585 shares of common stock and 909 RSUs in the $356 million market cap company. For deeper insights into PMTS's valuation and 8 additional key investment tips, check out the comprehensive research available on InvestingPro.
In other recent news, CPI Card Group reported a strong performance in the third quarter of 2024, marking its second-largest sales quarter in history. The company saw an 18% increase in net sales and a 25% surge in product sales, particularly in eco-friendly contactless cards. Adjusted EBITDA also rose by 18% to $25.1 million. However, net income declined by 66% due to debt refinancing costs.
In light of these results, CPI Card Group raised its full-year outlook, anticipating mid to high single-digit net sales growth and low single-digit adjusted EBITDA growth. Additionally, the company plans to open a new production facility in Indiana by mid-2025 to enhance capacity and efficiency.
DA Davidson commenced coverage on CPI Card Group with a Buy rating and a $36.00 price target, citing the company's growing market share in the United States, beneficial industry trends, and the anticipation of high single-digit growth in both adjusted EBITDA and free cash flow. The firm's forecast for the card manufacturer anticipates robust growth in key financial metrics, which is expected to make the company's valuation appealing to investors. These are recent developments for CPI Card Group.
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