Director Daniel S. Wood of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), a company specializing in finance services, has recently sold a portion of his stock in the company. The transactions, which occurred on multiple dates, resulted in a total sale worth over $46,507.
The sales took place on May 23, May 24, and May 28, with the prices of the shares ranging from $7.928 to $8.4094. On May 23, the weighted average sale price was reported at $8.4094, with sales executed within the narrow range of $8.39 to $8.41 per share. Similarly, on May 28, shares were sold at a weighted average of $7.928, with individual sales ranging from $7.90 to $7.99 per share.
The first transaction on May 23 involved the sale of 2,586 shares, followed by a sale of 1,000 shares on May 24, and finally, 2,094 shares on May 28. Following these transactions, Daniel S. Wood's ownership in Consumer Portfolio Services decreased yet remained substantial, with a total of 229,212 shares directly owned.
Investors often monitor such sales as indicators of an insider's belief in the company's current valuation or future prospects. However, it is also not uncommon for executives to sell shares for personal financial planning purposes.
The details of these transactions are publicly available as per regulatory requirements, and the company's director has expressed willingness to provide full information regarding the number of shares sold at each separate price upon request.
InvestingPro Insights
In the context of Director Daniel S. Wood's recent sale of Consumer Portfolio Services, Inc. (NASDAQ:CPSS) stock, several key metrics provided by InvestingPro may offer additional insights into the company's financial health and market performance. As of the last twelve months, CPSS holds a market capitalization of approximately $166.7 million and boasts a notably low price-to-earnings (P/E) ratio of 4.74. This low earnings multiple could suggest the stock is undervalued compared to its earnings, which is particularly interesting given the recent insider transactions.
Despite recent declines in the stock price, with a 1-month total return of -7.68%, CPSS has demonstrated a strong return over the last five years, one of the InvestingPro Tips highlighting the potential long-term value for shareholders. Furthermore, the company's liquidity position appears robust, with liquid assets surpassing short-term obligations, which is a reassuring sign of financial stability.
For investors intrigued by CPSS's investment profile and seeking to delve deeper into the company's potential, InvestingPro offers a wealth of additional tips—5 more, to be precise. These insights can be accessed through a subscription, and using the promo code PRONEWS24, readers can enjoy an extra 10% off on a yearly or biyearly Pro and Pro+ subscription.
Lastly, it's worth noting that CPSS does not pay a dividend, which could influence the investment strategy for those seeking regular income from their investments. The absence of dividend payments might be compensated by the company's profitability over the last twelve months and its solid operating income margin of 24.41%, reflecting efficient management and potential for reinvestment in growth opportunities.
For a comprehensive analysis and additional InvestingPro Tips, interested parties are encouraged to visit: https://www.investing.com/pro/CPSS
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