2024-10-01 12:28:09 ET
Shares of CPI Card Group (NASDAQ: PMTS) , a small-cap company that's curiously also one of the nation's biggest manufacturers of the credit cards that banks issue their customers, plunged 15% through 10:50 a.m. ET Tuesday morning. It's not hard to figure out why: CPI's biggest shareholder is cashing out.
Not cashing out entirely , mind you. But as the company advised today, private equity firm Parallel49 Equity is offering anywhere from 1.2 million to 1.4 million shares for sale (depending on whether overallotment options are exercised). And it's selling these shares for just $21 apiece.
CPI stock closed near $28 last night. So you can understand why investors were a bit surprised by this news, and this price. It must feel a bit like someone on the inside knows something we don't and is dumping their shares at a loss. But here's the thing:
