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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of CPI Card Group Inc. (NASDAQ:PMTS), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
CPI Card Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Human Resources Officer, Sonya Vollmer, for US$92k worth of shares, at about US$25.10 per share. That means that an insider was selling shares at around the current price of US$23.96. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was Sonya Vollmer.
Happily, we note that in the last year insiders paid US$133k for 4.59k shares. On the other hand they divested 3.66k shares, for US$92k. In total, CPI Card Group insiders bought more than they sold over the last year. They paid about US$29.09 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for CPI Card Group
CPI Card Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of CPI Card Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that CPI Card Group insiders own about US$6.4m worth of shares (which is 2.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About CPI Card Group Insiders?
It doesn't really mean much that no insider has traded CPI Card Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more CPI Card Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CPI Card Group. For example, CPI Card Group has 2 warning signs (and 1 which is a bit concerning) we think you should know about.