CPI CARD GROUP DL-,001

CPI Card Group fell about 16% after major stockholder Parallel49 Equity announced a secondary sale of 2.3–2.7 million shares at $21.50 each, roughly 20% below the prior close. The sale followed recent positive free cash flow results that had driven a sharp August rally. After the drop, the stock trades at roughly 4x price-to-free-cash-flow. Analysts note the sale reflects Parallel49 exiting a long-held position, and CPI was not included in a separate top-10 stock recommendation list. » More on finance.yahoo.com

The CPI Card Group share plunged about 14.9% in after-hours trading after shareholders linked to Parallel49 Equity announced a guaranteed secondary placement of 2,337,323 ordinary shares. The syndicate banks were also granted a 30-day option to buy up to a further 350,598 shares, which could increase the placement volume. CPI Card Group is not involved in the transaction and will receive no proceeds, which is seen as a sign of the financial investor reducing its stake. The announcement came against a weak macroeconomic backdrop with rising oil prices and stronger-than-expected producer price data, which amplified the negative price reaction. » More on de.investing.com

Members of Parallel49 Equity are offering 2,337,323 common shares of CPI Card Group for secondary sale and have granted the syndicate banks a 30-day option on up to 350,598 additional shares. CPI Card Group is not selling any shares and will receive no proceeds; all proceeds will go to the selling shareholders. B. Riley Securities and D.A. Davidson & Co. are leading the syndicate; the offering is being made on market terms and is based on an effective S-3 registration with the SEC. » More on de.investing.com