Compass Diversified (NYSE:CODI) Stock Rated Buy in New Coverage at LADENBURG THALM/SH SH

Key Points

• LADENBURG THALM/SH SH initiated coverage of Compass Diversified with a “buy” rating and a $17 price target, implying approximately 58% upside from the prior close.
• Analyst sentiment is mixed: four analysts rate the stock a Buy, two a Hold, and one a Sell, resulting in a consensus “Hold” rating and an average $17 price target.
• Compass Diversified reported a quarterly loss of $0.09 per share on $424.04 million in revenue, while insiders purchased 140,995 shares worth about $1.72 million over the past three months.

Investment analysts at LADENBURG THALM/SH SH initiated coverage on shares of Compass Diversified (NYSE:CODI - Get Free Report) in a research note issued on Tuesday, Briefing.com reports. The brokerage set a "buy" rating and a $17.00 price target on the financial services provider's stock. LADENBURG THALM/SH SH's price target would suggest a potential upside of 57.77% from the stock's previous close.

A number of other brokerages have also recently commented on CODI. UBS Group set a $18.00 target price on Compass Diversified in a report on Tuesday, August 11th. Compass Point set a $17.00 price target on Compass Diversified in a report on Tuesday. TD Cowen upped their price target on Compass Diversified from $12.50 to $18.00 and gave the stock a "buy" rating in a research report on Tuesday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Compass Diversified in a research report on Friday, July 17th. Finally, Wall Street Zen raised Compass Diversified from a "sell" rating to a "hold" rating in a research note on Saturday, August 29th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Compass Diversified currently has a consensus rating of "Hold" and an average price target of $17.00.

Compass Diversified Stock Down 0.7%

CODI opened at $10.78 on Tuesday. The company has a current ratio of 2.26, a quick ratio of 1.10 and a debt-to-equity ratio of 11.90. Compass Diversified has a 1-year low of $4.58 and a 1-year high of $13.25. The company has a market capitalization of $810.71 million, a PE ratio of -4.97 and a beta of 1.30. The firm's 50 day simple moving average is $11.34 and its two-hundred day simple moving average is $10.78.

Compass Diversified (NYSE:CODI - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. The business had revenue of $424.04 million for the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. As a group, equities analysts forecast that Compass Diversified will post 0.13 EPS for the current year.

Insider Activity

In other Compass Diversified news, insider Teri Shaffer bought 11,881 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The shares were bought at an average price of $12.25 per share, with a total value of $145,542.25. Following the purchase, the insider owned 13,201 shares of the company's stock, valued at $161,712.25. This trade represents a 900.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Larry Enterline purchased 67,114 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average cost of $12.42 per share, for a total transaction of $833,555.88. Following the completion of the acquisition, the insider owned 100,000 shares in the company, valued at $1,242,000. This represents a 204.08% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought a total of 140,995 shares of company stock valued at $1,715,498 in the last three months. 1.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Compass Diversified

Institutional investors and hedge funds have recently modified their holdings of the stock. Essential Partners LLC boosted its position in shares of Compass Diversified by 9,263.2% during the first quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider's stock worth $42,000 after acquiring an additional 5,280 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in Compass Diversified during the second quarter valued at $48,000. Alpine Global Management LLC purchased a new position in Compass Diversified during the fourth quarter valued at $177,000. Empowered Funds LLC bought a new stake in Compass Diversified in the 1st quarter valued at $222,000. Finally, ARS Investment Partners LLC increased its holdings in Compass Diversified by 257.6% in the 1st quarter. ARS Investment Partners LLC now owns 53,256 shares of the financial services provider's stock valued at $419,000 after acquiring an additional 38,364 shares during the last quarter. Institutional investors own 72.73% of the company's stock.

About Compass Diversified

Compass Diversified NYSE: CODI is a holding company that acquires and manages a diverse portfolio of middle-market businesses. The company provides long-term capital and operational support to businesses with established brands, differentiated products and opportunities for continued growth, generally seeking to hold its subsidiaries for extended periods rather than operate as a short-term investment vehicle.

Its portfolio has included companies in branded consumer products and niche industrial markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.