Compass Diversified Holdings (NYSE:CODI) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Compass Diversified, with three buys, two holds and one sell among six covering brokerages. The average 12-month price target is $16.50, above the stock’s reported $11.73 price.
• Insiders have recently increased their holdings, including purchases by Teri Shaffer and Stephen Keller. Company insiders acquired 120,995 shares worth approximately $1.49 million over the past 90 days.
• Compass Diversified reported a quarterly loss of $0.09 per share on revenue of $424.04 million, alongside negative margins and return on equity. Institutional investors and hedge funds own 72.73% of the company.

Shares of Compass Diversified Holdings (NYSE:CODI - Get Free Report) have been given a consensus rating of "Hold" by the six brokerages that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and three have given a buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $16.50.

Several equities analysts have recently issued reports on the company. Wall Street Zen cut Compass Diversified from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. B. Riley Financial upgraded shares of Compass Diversified from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $11.00 to $15.00 in a report on Tuesday, August 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Compass Diversified in a research report on Friday, July 17th. TD Cowen raised their price objective on shares of Compass Diversified from $12.50 to $18.00 and gave the company a "buy" rating in a report on Tuesday, August 11th. Finally, UBS Group set a $18.00 price objective on shares of Compass Diversified in a research report on Tuesday, August 11th.

Insiders Place Their Bets

In related news, insider Teri Shaffer purchased 11,881 shares of Compass Diversified stock in a transaction that occurred on Wednesday, August 12th. The stock was purchased at an average cost of $12.25 per share, with a total value of $145,542.25. Following the completion of the transaction, the insider directly owned 13,201 shares in the company, valued at approximately $161,712.25. The trade was a 900.08% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Stephen Keller acquired 10,000 shares of Compass Diversified stock in a transaction on Wednesday, August 12th. The stock was purchased at an average price of $12.01 per share, with a total value of $120,100.00. Following the purchase, the insider owned 51,840 shares of the company's stock, valued at $622,598.40. The trade was a 23.90% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 120,995 shares of company stock valued at $1,486,098. 1.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Compass Diversified

Several institutional investors have recently added to or reduced their stakes in CODI. Essential Partners LLC grew its stake in shares of Compass Diversified by 9,263.2% in the 1st quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 5,280 shares during the last quarter. RPO LLC acquired a new position in shares of Compass Diversified in the fourth quarter valued at approximately $60,000. Geneos Wealth Management Inc. raised its stake in shares of Compass Diversified by 68.6% during the second quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider's stock worth $62,000 after purchasing an additional 4,000 shares during the last quarter. Focus Partners Wealth purchased a new stake in shares of Compass Diversified during the third quarter worth approximately $70,000. Finally, Quantessence Capital LLC acquired a new stake in shares of Compass Diversified during the third quarter worth $70,000. Institutional investors and hedge funds own 72.73% of the company's stock.

Compass Diversified Stock Performance

Shares of Compass Diversified stock opened at $11.73 on Monday. The business has a 50-day moving average of $10.61 and a 200 day moving average of $9.64. Compass Diversified has a 12 month low of $4.58 and a 12 month high of $13.25. The stock has a market capitalization of $882.52 million, a price-to-earnings ratio of -5.41 and a beta of 1.27. The company has a debt-to-equity ratio of 11.90, a current ratio of 2.26 and a quick ratio of 1.10.

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 (EPS) 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 for the quarter. As a group, sell-side analysts forecast that Compass Diversified will post 0.11 earnings per share for the current year.

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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