CPS Technologies Corp. (NASDAQ:CPSH) Chief Financial Officer Charles Kellogg (NYSE:) Griffith Jr. has reported a purchase of 1,000 shares of the company’s common stock, according to a recent SEC filing. The shares were acquired at a price of $1.40 each, totaling approximately $1,400. Following this transaction, Griffith Jr. holds 37,792 shares directly. This transaction highlights continued insider investment in the company, which is based in Norton, Massachusetts.
In other recent news, CPS Technologies reported its third-quarter financial results, revealing a revenue decline and an operating loss. The company’s revenue for the quarter was $4.2 million, a decrease from the previous year’s $6.3 million. This decline is primarily attributed to the completion of a significant U.S. Navy Armor contract and reduced purchases by another key customer. The company also reported an operating loss of approximately $1.5 million and a gross loss of roughly 12% of sales. Despite these challenges, CPS Technologies remains optimistic about the future.
The company cites recent contract wins and improvements in manufacturing capabilities as positive indicators for upcoming quarters. CPS Technologies is actively pursuing follow-on orders from the U.S. Navy and other agencies, and is focusing on growth and improved margins for fiscal 2025. The company also highlighted the importance of new product lines, including the commercialization of Fiber Reinforced (FRA) composites in fiscal 2025. These recent developments suggest that CPS Technologies is positioning itself for potential future success despite recent setbacks.
InvestingPro Insights
The recent insider purchase by CPS Technologies Corp.’s CFO Charles Kellogg Griffith Jr. comes at a time when the company faces several financial challenges, as revealed by InvestingPro data. With a market capitalization of $20.35 million, CPSH is currently trading at a price-to-book ratio of 1.33, suggesting the stock may be reasonably valued relative to its book value.
However, InvestingPro Tips highlight that CPS Technologies is not profitable over the last twelve months and suffers from weak gross profit margins. This is reflected in the company’s financials, with a gross profit margin of just 5.93% and an operating income margin of -13.3% for the last twelve months as of Q3 2023. The company’s revenue has also seen a significant decline, with a 32.43% decrease in quarterly revenue for Q3 2023.
On a positive note, an InvestingPro Tip indicates that CPS Technologies holds more cash than debt on its balance sheet, which could provide some financial flexibility during this challenging period. Additionally, the company’s liquid assets exceed short-term obligations, potentially mitigating immediate liquidity concerns.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for CPS Technologies, providing a deeper understanding of the company’s financial position and prospects.
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