Compass (NYSE:COMP) Given New $12.00 Price Target at Needham & Company LLC

Key Points

• Needham cut Compass’s price target from $17 to $12 but maintained a “Buy” rating, implying about 24.6% upside from $9.63. Analysts overall have a “Moderate Buy” consensus and a $13.50 average target.
• Compass shares rose 9.9%, while the company reported quarterly EPS of $0.11 versus the $0.08 consensus estimate and revenue of $4.31 billion, ahead of expectations.
• Merger-related securities litigation tied to Compass’s acquisition of Anywhere presents added legal, reputational and integration risks, despite potential support from falling interest rates and the company’s technology investments.

Compass (NYSE:COMP - Get Free Report) had its target price cut by equities researchers at Needham & Company LLC from $17.00 to $12.00 in a report released on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's target price indicates a potential upside of 24.64% from the company's current price.

A number of other equities analysts have also weighed in on the stock. Oppenheimer lifted their price target on shares of Compass from $15.00 to $18.00 and gave the company an "outperform" rating in a report on Wednesday, August 5th. Compass Point set a $11.00 price objective on Compass in a report on Wednesday. Citigroup initiated coverage on Compass in a report on Wednesday. They set an "outperform" rating for the company. The Goldman Sachs Group increased their target price on Compass from $10.50 to $12.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Finally, UBS Group lifted their target price on Compass from $12.00 to $17.00 and gave the company a "buy" rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.50.

Compass Trading Up 9.9%

NYSE COMP opened at $9.63 on Friday. Compass has a 12 month low of $6.37 and a 12 month high of $13.95. The company has a 50-day moving average of $10.58 and a 200-day moving average of $9.80. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $7.29 billion, a P/E ratio of 160.47 and a beta of 2.32.

Compass (NYSE:COMP - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.08 by $0.03. Compass had a net margin of 0.63% and a return on equity of 3.62%. The business had revenue of $4.31 billion for the quarter, compared to analysts' expectations of $4.11 billion. As a group, equities analysts predict that Compass will post 0.19 earnings per share for the current year.

Insiders Place Their Bets

In other Compass news, CEO Robert Reffkin sold 23,456 shares of Compass stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $11.70, for a total transaction of $274,435.20. Following the transaction, the chief executive officer directly owned 7,757,748 shares of the company's stock, valued at $90,765,651.60. The trade was a 0.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.85% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Compass

Several large investors have recently made changes to their positions in COMP. GAMMA Investing LLC raised its stake in shares of Compass by 57.7% in the 3rd quarter. GAMMA Investing LLC now owns 5,400 shares of the company's stock valued at $48,000 after acquiring an additional 1,975 shares during the period. IFP Advisors Inc purchased a new stake in Compass during the 2nd quarter worth $31,000. Nykredit A S purchased a new stake in Compass during the 2nd quarter worth $77,000. Allworth Financial LP acquired a new stake in Compass in the 2nd quarter valued at $110,000. Finally, QRG Capital Management Inc. acquired a new stake in Compass in the 2nd quarter valued at $152,000. Institutional investors and hedge funds own 67.05% of the company's stock.

Key Stories Impacting Compass

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Falling rates support housing stocks: Declining long-term borrowing costs lifted real-estate companies, including Compass, by improving housing affordability and potentially supporting transaction volumes. Opendoor and Zillow Surge as Long-Term Rates Retreat
• Positive Sentiment: Analyst support: Citizens JMP initiated coverage with a “Market Outperform” rating and an $11 price target, implying roughly 14% upside from the referenced $9.63 price. Citizens JMP coverage of Compass
• Positive Sentiment: Technology focus: Compass added a Google Gemini leader to its board, potentially strengthening its artificial-intelligence strategy and technology capabilities in real-estate brokerage. Compass adds Google Gemini leader to board
• Neutral Sentiment: Upcoming earnings event: Compass will release third-quarter 2026 results after the market closes on November 5 and hold a conference call at 5:00 p.m. Investors will be watching integration progress following the Anywhere acquisition, revenue growth and profitability. Compass third-quarter results announcement
• Negative Sentiment: Escalating merger-related litigation: Multiple law firms announced or promoted a securities class action alleging that Compass’s merger offering materials misrepresented or omitted information, including alleged communications involving the Department of Justice and regulatory inquiries. The claims concern the January 2026 stock-for-stock acquisition of Anywhere and remain allegations, but could increase legal costs, reputational risk and uncertainty surrounding the integration. Lead-plaintiff deadlines are centered on December 8, 2026. Compass securities class action filing

Compass Company Profile

Compass, Inc is a technology-enabled residential real estate brokerage operating in the United States. The company supports real estate agents and their clients in buying, selling and renting homes, combining brokerage services with digital tools designed to manage listings, marketing, customer relationships and transactions.

Compass provides its agents with a proprietary technology platform that includes customer relationship management, listing and marketing tools, business analytics, and transaction-management capabilities.

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