CPI Card Group Inc . (NASDAQ:PMTS (TSX:PMTS)) stock soared to a 52-week high, reaching $34.05, marking a significant milestone for the company. According to InvestingPro data, the stock's technical indicators suggest it's in overbought territory, with a market capitalization of $377.41 million. This peak reflects a robust year-over-year growth, with the stock price surging by an impressive 98.48%. The company's strong performance is backed by a healthy financial profile, earning a GOOD overall Financial Health Score from InvestingPro, with particularly strong momentum metrics. Investors have shown increased confidence in the company's performance and future prospects, contributing to the stock's upward trajectory. The 52-week high serves as a testament to CPI Card Group's strong market position and its ability to adapt and thrive in the dynamic financial sector. Trading at a P/E ratio of 24.52, the stock has delivered an impressive 74.05% return year-to-date. Get deeper insights and access to 8 additional ProTips with an InvestingPro subscription.
In other recent news, CPI Card Group has been the focus of positive analyst coverage and robust earnings results. DA Davidson initiated coverage on CPI Card Group, setting a buy rating with a $36.00 price target. The firm's optimism stems from the company's expanding market share in the United States, beneficial industry trends, and anticipated high single-digit growth in adjusted EBITDA and free cash flow. The company's decreasing financial leverage also contributed to the favorable assessment.
In terms of earnings, CPI Card Group reported a strong performance in the third quarter of 2024, marking its second-largest sales quarter in history. The company's net sales and adjusted EBITDA both rose nearly 20%, driven by a 25% surge in product sales, particularly in eco-friendly contactless cards. The Prepaid segment also witnessed significant growth. However, net income declined by 66% due to debt refinancing costs.
These are recent developments for CPI Card Group. The company also completed a debt refinancing and a share repurchase program and raised its full-year outlook. It anticipates mid to high single-digit net sales growth and low single-digit adjusted EBITDA growth for the full year. Furthermore, CPI Card Group is planning to open a new production facility in Indiana by mid-2025, expected to enhance capacity and efficiency.
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