Greg Washer, a director at Consumer Portfolio Services, Inc. (NASDAQ:CPSS), recently sold a significant portion of his holdings in the company. On November 7, Washer sold 10,981 shares of common stock at a weighted average price of $11.06 per share, resulting in a total transaction value of $121,449. Following this sale, Washer retains direct ownership of 265,000 shares. Additionally, he holds 106,803 shares indirectly in a Simplified Employer Pension Account. The shares were sold in multiple transactions at prices ranging from $11.05 to $11.20.
In other recent news, Consumer Portfolio Services, a finance services company, has made strategic financial maneuvers to bolster its auto loan financing business. The company expanded its credit line from $200 million to $225 million, a move disclosed in a recent SEC filing. This amendment, managed by Citibank, N.A., allows for an increased borrowing capacity and introduces a subordinate third-party lender, enhancing the advance rate against pledged receivables.
On the earnings front, Consumer Portfolio Services reported a solid financial performance for the third quarter of 2024. Despite a decrease in pre-tax earnings and net income, the company saw a 9% increase in revenues year-over-year, reaching $100.6 million. There was also a 38% surge in origination volume, contributing to year-to-date revenues of $288.2 million.
The company also highlighted operational improvements such as reduced funding times and increased same-day funding. The integration of AI-driven tools has been successful, and despite a slight increase in annualized net charge-offs, the company's fair value portfolio grew to $3.1 billion with an 11.3% yield. These are recent developments that reflect Consumer Portfolio Services' strategic focus on operational efficiency and credit performance.
InvestingPro Insights
In light of Greg Washer's recent stock sale, it's worth examining some key financial metrics and insights for Consumer Portfolio Services, Inc. (NASDAQ:CPSS). According to InvestingPro data, CPSS currently has a market capitalization of $237.17 million and a price-to-earnings (P/E) ratio of 11.03, suggesting the stock may be reasonably valued relative to its earnings.
Despite the director's sale, InvestingPro Tips highlight that CPSS has shown strong returns over various time frames. The stock has seen a significant 9.79% return over the last week and an impressive 28.69% return over the last three months. This positive momentum could indicate investor confidence in the company's prospects, even as an insider reduces their position.
It's also noteworthy that CPSS's liquid assets exceed its short-term obligations, which speaks to the company's financial stability. This factor may provide some reassurance to investors concerned about the recent insider sale.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CPSS, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable for investors trying to contextualize insider transactions like Washer's sale.
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