In a recent series of transactions, Daniel S. Wood, a director at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), sold a total of 24,752 shares of the company's common stock, resulting in proceeds exceeding $195,000. The sales took place over a span of three days, from May 29 to May 31, 2024.
On May 29, Wood sold 4,000 shares at a weighted average price of $7.9488 per share, with the transactions occurring within a price range of $7.80 to $8.01. The following day, an additional 2,052 shares were sold at an average price of $8.0495, with sales prices ranging from $8.03 to $8.08. The final sale on May 31 was the largest, with 17,700 shares sold at an average price of $8.3397, and individual sales prices ranging from $8.20 to $8.59.
After these transactions, Daniel S. Wood's holdings in Consumer Portfolio Services decreased to 205,460 shares. The company, headquartered in Irvine, California, specializes in financial services and operates within the finance services industry.
Investors and market watchers often pay close attention to insider sales as they may provide insights into the executive's view of the company's current valuation or future prospects. However, it's important to note that there can be various reasons for an insider to sell stock, and such transactions do not necessarily indicate a lack of confidence in the company.
The details of these transactions were disclosed in accordance with SEC regulations, which require company insiders to report their trading activities. Daniel S. Wood has confirmed the accuracy of the reported transactions and has agreed to provide full details regarding the number of shares sold at each separate price upon request by the SEC, Consumer Portfolio Services, or any of its security holders.
InvestingPro Insights
In light of the recent insider selling at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), potential investors and current shareholders might seek additional data points to better understand the company's financial position. According to InvestingPro, CPSS is trading at a low earnings multiple with a P/E Ratio (Adjusted) of 4.66 as of the last twelve months ending Q1 2024. This suggests that the company's earnings are relatively inexpensive compared to its share price, potentially indicating an undervalued stock.
Despite recent insider sales, CPSS has demonstrated a strong return over the last five years, one of the InvestingPro Tips that may reassure investors looking for long-term growth potential. Furthermore, CPSS has a solid liquidity position, with liquid assets surpassing short-term obligations, which highlights the company's ability to cover immediate liabilities.
For those interested in delving deeper into CPSS's performance and future prospects, InvestingPro offers additional tips. There are 5 more InvestingPro Tips available for CPSS, which can provide further insights into the company's volatility, profitability, and dividend policy. To access these valuable tips and make more informed investment decisions, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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