CPI Card Group Shares Drop Sharply After Major Shareholder Sells at Discount
Shares of CPI Card Group (NASDAQ: PMTS) plummeted by nearly 16.3% on September 11, 2026, following an announcement that major stockholder Parallel49 Equity is selling a large block of shares in the secondary market. The private equity firm plans to sell between 2.3 million and 2.7 million shares at $21.50 per share — significantly below the previous day's closing price by about 20%. This move has triggered concerns among investors, despite CPI’s strong free cash flow of $25.9 million in its last quarter. Parallel49 Equity had owned CPI Payments for two decades and is now capitalizing on recent gains to exit its position. While the sell-off may not necessarily signal long-term trouble for CPI Card Group, it has caused a sharp drop in share price today. The stock currently trades at just 4 times free cash flow — potentially offering an attractive entry point for investors willing to ignore short-term volatility. The Motley Fool analysts note that while they have previously recommended CPI as a buy, the company is not among their current top ten picks.
Topics: CPI Card Group Parallel49 Equity PMTS stock crash secondary offering