Compass Diversified (NYSE:CODI) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Compass Diversified from “sell” to “hold.” The broader analyst consensus is also “Hold,” with three Buy, two Hold and one Sell rating and an average price target of $16.50.
• CODI shares opened at $11.48, above their 50-day and 200-day moving averages, but the company reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity.
• Insiders purchased 140,995 shares worth approximately $1.72 million over the past 90 days, while institutional investors own 72.73% of the stock.

Compass Diversified (NYSE:CODI - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

CODI has been the topic of several other reports. B. Riley Financial raised shares of Compass Diversified from a "neutral" rating to a "buy" rating and lifted their price target for the company from $11.00 to $15.00 in a report on Tuesday, August 11th. UBS Group set a $18.00 price objective on shares of Compass Diversified in a research note on Tuesday, August 11th. TD Cowen raised their target price on shares of Compass Diversified from $12.50 to $18.00 and gave the company a "buy" rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Compass Diversified in a research note on Friday, July 17th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $16.50.

Compass Diversified Price Performance

Shares of CODI stock opened at $11.48 on Friday. The business has a fifty day simple moving average of $10.75 and a 200 day simple moving average of $9.79. The company has a market cap of $863.76 million, a P/E ratio of -5.29 and a beta of 1.27. The company has a quick ratio of 1.10, a current ratio of 2.26 and a debt-to-equity ratio of 11.90. Compass Diversified has a twelve month low of $4.58 and a twelve month high of $13.25.

Compass Diversified (NYSE:CODI - Get Free Report) last released its earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share (EPS) for the quarter. The business had revenue of $424.04 million during the quarter. Compass Diversified had a negative net margin of 5.38% and a negative return on equity of 10.36%. On average, sell-side analysts forecast that Compass Diversified will post 0.11 EPS for the current fiscal year.

Insider Activity

In other news, insider Stephen Keller acquired 10,000 shares of the stock in a transaction dated Wednesday, August 12th. The stock was bought at an average price of $12.01 per share, with a total value of $120,100.00. Following the completion of the purchase, the insider directly owned 51,840 shares of the company's stock, valued at $622,598.40. This represents a 23.90% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Teri Shaffer acquired 11,881 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The stock was acquired at an average price of $12.25 per share, with a total value of $145,542.25. Following the acquisition, the insider owned 13,201 shares in the company, valued at $161,712.25. The trade was a 900.08% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders acquired 140,995 shares of company stock valued at $1,715,498. 1.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Compass Diversified

A number of institutional investors have recently added to or reduced their stakes in CODI. Western Standard LLC bought a new position in shares of Compass Diversified during the fourth quarter valued at $5,592,000. Renaissance Technologies LLC bought a new position in Compass Diversified during the 1st quarter worth $736,000. Sei Investments Co. raised its position in Compass Diversified by 69.6% during the 1st quarter. Sei Investments Co. now owns 286,033 shares of the financial services provider's stock worth $2,248,000 after purchasing an additional 117,423 shares during the last quarter. Bank of America Corp DE lifted its holdings in Compass Diversified by 77.4% during the 1st quarter. Bank of America Corp DE now owns 1,306,527 shares of the financial services provider's stock worth $10,269,000 after buying an additional 570,003 shares during the period. Finally, Oak Family Advisors LLC acquired a new position in Compass Diversified during the 1st quarter worth about $1,372,000. 72.73% of the stock is owned by institutional investors.

Compass Diversified Company Profile

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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