Crisp April, Senior Vice President of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), recently executed a stock transaction involving the sale of 2,500 shares of common stock. The shares were sold at a price of $10.75 each, totaling $26,875. This transaction was part of a broader exercise of stock options, where April acquired 2,500 shares at an exercise price of $2.47 per share before the sale. Following these transactions, April's direct ownership in the company stands at 17,212 shares.
In other recent news, Consumer Portfolio Services has experienced significant developments. The company's annual shareholder meeting concluded with the re-election of its nine-member board of directors and the ratification of executive pay. The board includes Charles E. Bradley, Jr., Stephen H. Deckoff, Louis M. Grasso, William W. Grounds, Brian J. Rayhill, William B. Roberts, James E. Walker III, Gregory S. Washer, and Daniel S. Wood.
Moreover, the company expanded its credit facility from $200 million to $225 million, a move facilitated by Citibank, N.A. This amendment aims to strengthen the company's auto loan financing business.
In their third quarter of 2024, Consumer Portfolio Services reported a 9% year-over-year increase in revenues, reaching $100.6 million, and a 38% surge in origination volume. However, pre-tax earnings and net income declined to $6.9 million and $4.8 million, respectively. Additionally, the company's fair value portfolio grew to $3.1 billion with an 11.3% yield.
The company also implemented operational improvements, such as reducing funding times and increasing same-day funding, and successfully integrated AI-driven tools. Looking forward, Consumer Portfolio Services plans to leverage technology to enhance efficiencies and reduce fraud losses. These are the latest developments in the company's ongoing growth and strategic direction.
InvestingPro Insights
The recent stock transaction by Crisp April, Senior Vice President of Consumer Portfolio Services, Inc. (NASDAQ:CPSS), aligns with several key insights from InvestingPro.
CPSS's stock has shown strong performance recently, with InvestingPro data indicating a 24.82% price total return over the past three months and a 27.27% return over the last six months. This robust performance is reflected in one of the InvestingPro Tips, which notes a "Strong return over the last three months."
Despite the positive stock performance, it's worth noting that CPSS's revenue growth has been negative, with a -18.56% decline in the last twelve months. This contrasts with another InvestingPro Tip suggesting that "Analysts anticipate sales growth in the current year," indicating a potential turnaround in the company's financial performance.
The company's valuation metrics provide additional context. CPSS trades at a P/E ratio of 10.32, which is relatively low, and its price-to-book ratio stands at 0.77, suggesting the stock may be undervalued. This could explain why the company has seen strong returns despite revenue challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for CPSS, providing a deeper understanding of the company's financial health and market position.
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