Key Points
- Insider Larry Enterline purchased 67,114 Compass Diversified shares at an average price of $12.42, investing approximately $833,556 and increasing his holdings to 100,000 shares.
- CODI reported a quarterly loss of $0.09 per share on $424.04 million in revenue, with negative net margin and return on equity, highlighting ongoing profitability risks.
- Analyst sentiment has improved, with B. Riley upgrading the stock to “Buy” and several firms raising price targets; however, the consensus rating remains “Hold” with a $16.50 target price.
Compass Diversified Holdings (NYSE:CODI - Get Free Report) insider Larry Enterline bought 67,114 shares of the stock in a transaction dated Thursday, August 13th. The shares were purchased at an average cost of $12.42 per share, for a total transaction of $833,555.88. Following the completion of the purchase, the insider owned 100,000 shares in the company, valued at approximately $1,242,000. This represents a 204.08% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
Compass Diversified Price Performance
NYSE:CODI opened at $12.70 on Friday. The company has a quick ratio of 1.56, a current ratio of 2.26 and a debt-to-equity ratio of 11.90. Compass Diversified Holdings has a 52 week low of $4.58 and a 52 week high of $13.25. The stock's 50-day moving average price is $10.48 and its 200-day moving average price is $9.43. The stock has a market capitalization of $955.35 million, a PE ratio of -5.85 and a beta of 1.27.
Compass Diversified (NYSE:CODI - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%.The business had revenue of $424.04 million during the quarter. As a group, equities analysts expect that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.
Institutional Trading of Compass Diversified
Several hedge funds have recently made changes to their positions in CODI. SG Capital Management LLC acquired a new stake in shares of Compass Diversified during the 4th quarter worth approximately $7,626,000. CenterBook Partners LP purchased a new stake in Compass Diversified in the fourth quarter valued at $6,597,000. Western Standard LLC purchased a new stake in shares of Compass Diversified in the 4th quarter valued at $5,592,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Compass Diversified during the fourth quarter worth approximately $4,099,000. Finally, Jacobs Levy Equity Management Inc. boosted its position in shares of Compass Diversified by 75.2% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,966,408 shares of the financial services provider's stock worth $9,439,000 after acquiring an additional 843,965 shares in the last quarter. Hedge funds and other institutional investors own 72.73% of the company's stock.
Compass Diversified News Summary
Here are the key news stories impacting Compass Diversified this week:
- Positive Sentiment: Analyst upgrades and higher targets: B. Riley Financial upgraded CODI from “Neutral” to “Buy” and raised its price target from $11 to $15. TD Cowen increased its target from $12.50 to $18 and maintained a “Buy” rating, while UBS also set an $18 target. The higher targets are above recent trading levels and likely improved investor sentiment. B. Riley Financial upgrades Compass Diversified
- Positive Sentiment: Multiple insider purchases: Zachary T. Sawtelle bought 25,000 shares for approximately $299,750 on August 12 and another 7,000 shares for $87,150 on August 13. Stephen Keller purchased 10,000 shares for about $120,100. The transactions materially increased their ownership and may signal that insiders believe CODI is undervalued or expect a business recovery. SEC insider ownership filing
- Positive Sentiment: Turnaround and transaction optimism: Reports have highlighted a $292 million sale and potential management-fee savings, reinforcing the possibility of improved liquidity, lower expenses and stronger portfolio performance. Compass Diversified’s $292 million sale
- Neutral Sentiment: Unusual options activity: Elevated options volume shows increased attention around CODI and could amplify near-term volatility, but it does not establish a clear bullish or bearish direction. Unusual options trading in Compass Diversified
- Negative Sentiment: Losses remain a risk: CODI reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity. Its recovery case therefore depends on successfully improving portfolio-company performance and converting recent strategic developments into sustained earnings.
Analyst Upgrades and Downgrades
A number of equities research analysts have recently issued reports on the stock. UBS Group set a $18.00 target price on shares of Compass Diversified in a report on Tuesday. TD Cowen upped their price objective on shares of Compass Diversified from $12.50 to $18.00 and gave the company a "buy" rating in a research note on Tuesday. B. Riley Financial upgraded shares of Compass Diversified from a "neutral" rating to a "buy" rating and increased their price objective for the company from $11.00 to $15.00 in a report on Tuesday. Weiss Ratings restated a "sell (d-)" rating on shares of Compass Diversified in a report on Friday, July 17th. Finally, Wall Street Zen cut Compass Diversified from a "hold" rating to a "sell" rating in a report on Saturday. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $16.50.
Check Out Our Latest Report on Compass Diversified
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.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
