Key Points
- Insider confidence: Zachary Sawtelle purchased 25,000 Compass Diversified shares for approximately $299,750, increasing his ownership by 79.14% to 56,588 shares.
- Mixed financial performance: Compass Diversified reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity, despite generating $424.04 million in revenue.
- Analyst sentiment remains divided: B. Riley, UBS and TD Cowen raised targets or issued bullish ratings, but the stock’s consensus rating is still “Hold,” with an average price target of $16.50.
Compass Diversified Holdings (NYSE:CODI - Get Free Report) insider Zachary Sawtelle purchased 7,000 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average cost of $12.45 per share, for a total transaction of $87,150.00. Following the completion of the acquisition, the insider directly owned 63,588 shares of the company's stock, valued at $791,670.60. This represents a 12.37% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website.
Compass Diversified Price Performance
CODI opened at $12.28 on Friday. The company has a market capitalization of $923.57 million, a P/E ratio of -5.66 and a beta of 1.27. Compass Diversified Holdings has a 1-year low of $4.58 and a 1-year high of $13.24. The company has a 50-day moving average of $10.44 and a 200-day moving average of $9.41. The company has a debt-to-equity ratio of 34.60, a quick ratio of 1.56 and a current ratio of 2.67.
Compass Diversified (NYSE:CODI - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. Compass Diversified had a negative net margin of 5.38% and a negative return on equity of 9.53%. The firm had revenue of $424.04 million during the quarter. Equities analysts expect that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.
More Compass Diversified News
Here are the key news stories impacting Compass Diversified this week:
- Positive Sentiment: Analyst upgrades: B. Riley Financial raised its rating to “Buy” from “Neutral” and increased its price target to $15 from $11. TD Cowen also raised its target to $18 from $12.50, while UBS set an $18 target. The analysts’ targets are above the recent trading level and have helped improve investor sentiment. B. Riley Financial upgrades Compass Diversified
- Positive Sentiment: Heavy insider buying: Zachary T. Sawtelle purchased 25,000 shares for approximately $299,750 on August 12 and another 7,000 shares for $87,150 on August 13. Stephen Keller also bought 10,000 shares for about $120,100. The purchases significantly increased their holdings and may signal that insiders view CODI as undervalued or expect improving performance. SEC insider ownership filing
- Positive Sentiment: Potential cost savings: A renegotiated management-fee agreement is expected to lower expenses, supporting the turnaround case for the middle-market investment company. This has attracted interest from value-oriented investors despite challenges at one portfolio company. Small-cap comeback story on Compass Diversified
- Neutral Sentiment: Unusual options activity: Elevated options trading reflects increased investor attention and could lead to greater near-term volatility, but it does not clearly indicate whether traders expect further gains or a pullback. Unusual options trading in Compass Diversified
- Negative Sentiment: Fundamental risks persist: CODI’s latest quarter included a $0.09-per-share loss, a negative net margin and negative return on equity. The company also continues to face reputational and execution concerns following fraud at an investment, which could undermine the recovery story.
Wall Street Analysts Forecast Growth
CODI has been the subject of several recent research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Compass Diversified in a research note on Friday, July 17th. UBS Group set a $18.00 price objective on shares of Compass Diversified in a research note on Tuesday. B. Riley Financial raised shares of Compass Diversified from a "neutral" rating to a "buy" rating and raised their target price for the stock from $11.00 to $15.00 in a report on Tuesday. Finally, TD Cowen lifted their target price on Compass Diversified from $12.50 to $18.00 and gave the company a "buy" rating in a research note on Tuesday. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Compass Diversified presently has an average rating of "Hold" and a consensus price target of $16.50.
Check Out Our Latest Analysis on Compass Diversified
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in CODI. Western Standard LLC acquired a new stake in shares of Compass Diversified during the 4th quarter valued at about $5,592,000. Sei Investments Co. increased its holdings in Compass Diversified by 69.6% in the first quarter. Sei Investments Co. now owns 286,033 shares of the financial services provider's stock worth $2,248,000 after buying an additional 117,423 shares during the last quarter. Oak Family Advisors LLC acquired a new position in Compass Diversified in the first quarter worth approximately $1,372,000. North Star Investment Management Corp. increased its stake in shares of Compass Diversified by 20,678.0% during the 1st quarter. North Star Investment Management Corp. now owns 61,295 shares of the financial services provider's stock worth $482,000 after purchasing an additional 61,000 shares during the last quarter. Finally, CenterBook Partners LP bought a new stake in Compass Diversified in the fourth quarter worth $6,597,000. Institutional investors and hedge funds own 72.73% of the company's stock.
About Compass Diversified
(
Get Free Report)
Compass Diversified Holdings (NYSE:CODI) is a publicly traded private equity company headquartered in Bethesda, Maryland. The firm specializes in acquiring and managing middle-market businesses across a variety of industries, with a focus on driving operational performance and sustainable growth. As an externally managed entity, Compass Diversified leverages a disciplined investment approach to build a portfolio of market-leading companies that benefit from strategic oversight, capital support and shared best practices.
Compass Diversified's investment activities span five core sectors: branded consumer, consumer services, differentiated industrial products, value-added distribution and business services.
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