Recent insider trends for CPI Card Group Inc. (NASDAQ:PMTS) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on PMTS is anything to go by, investors should pay attention.
Institutions own 18.29% of CPI Card Group Inc. (PMTS)’s shares. The total value of these holdings, in millions, is $13. Among active positions in the latest quarter, 32 holders increased their positions by a total of 1.27 million shares, 37 holders decreased the positions by a total of 3.44 million shares, and 9 holders held their positions. This works out to a net decrease in ownership of 2.17 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 7 holders initiated new positions by a total of 256986 shares and 20 holders exited their positions by a total of 2.56 million shares. This nets out to a decrease of 2.3 million shares and is another bearish sign for PMTS.
In the last three months, insiders executed a total of 5 trades. 4 of these were buys and 1 were sells. Insider ownership increased by a total of 110584 shares, which suggests that PMTS’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 10 buys and 6 sells, and ownership increased by a net of 118290 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. CPI Card Group Inc. (NASDAQ:PMTS)’s short interest is 2.57 million shares, or 13.21% of the float. This represents a decrease of -5% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for PMTS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PMTS is a buy, which implies that PMTS is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that CPI Card Group Inc. (NASDAQ:PMTS) is undervalued.