Compass Diversified (NYSE:CODI) Earns Market Perform Rating from Analysts at Raymond James Financial

Key Points

• Raymond James initiated coverage on Compass Diversified and assigned a "market perform" rating to the stock.
• Analysts are mixed but bearish on balance — the consensus rating is "Reduce" with a $11.50 consensus price target (1 Buy, 3 Hold, 2 Sell).
• Shares traded at $6.29 after Compass Diversified reported a large EPS miss (‑$0.98 vs. $0.61 expected); the company has a market cap of about $474 million and a negative net margin.

Raymond James Financial began coverage on shares of Compass Diversified (NYSE:CODI - Get Free Report) in a research note issued on Wednesday. The firm set a "market perform" rating on the financial services provider's stock.

Other equities analysts have also recently issued research reports about the stock. Zacks Research cut shares of Compass Diversified from a "hold" rating to a "strong sell" rating in a research note on Monday, January 19th. Compass Point set a $15.00 target price on shares of Compass Diversified in a report on Tuesday, January 27th. CJS Securities upgraded shares of Compass Diversified to an "outperform" rating in a research report on Tuesday, January 27th. B. Riley Financial dropped their price target on shares of Compass Diversified from $13.00 to $8.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. Finally, Wall Street Zen upgraded Compass Diversified from a "sell" rating to a "hold" rating in a research report on Saturday. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $11.50.

Compass Diversified Stock Down 1.7%

Shares of NYSE CODI traded down $0.11 on Wednesday, reaching $6.29. 68,063 shares of the company's stock traded hands, compared to its average volume of 1,374,419. The company has a quick ratio of 1.26, a current ratio of 2.42 and a debt-to-equity ratio of 19.20. The business's 50 day simple moving average is $6.29 and its two-hundred day simple moving average is $6.47. Compass Diversified has a 12 month low of $4.58 and a 12 month high of $20.07. The company has a market cap of $473.56 million, a price-to-earnings ratio of -1.62 and a beta of 1.04.

Compass Diversified (NYSE:CODI - Get Free Report) last posted its quarterly earnings results on Wednesday, January 14th. The financial services provider reported ($0.98) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.61 by ($1.59). Compass Diversified had a positive return on equity of 24.48% and a negative net margin of 12.09%. As a group, equities research analysts forecast that Compass Diversified will post 1.96 EPS for the current fiscal year.

Institutional Trading of Compass Diversified

A number of institutional investors and hedge funds have recently bought and sold shares of CODI. AQR Capital Management LLC bought a new position in Compass Diversified during the first quarter valued at $294,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Compass Diversified by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,635 shares of the financial services provider's stock valued at $740,000 after buying an additional 1,728 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Compass Diversified by 6.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 154,458 shares of the financial services provider's stock valued at $2,884,000 after acquiring an additional 10,006 shares during the last quarter. Jane Street Group LLC lifted its holdings in shares of Compass Diversified by 345.5% in the 1st quarter. Jane Street Group LLC now owns 193,907 shares of the financial services provider's stock valued at $3,620,000 after acquiring an additional 150,386 shares during the last quarter. Finally, Fox Run Management L.L.C. purchased a new position in Compass Diversified in the second quarter worth about $122,000. 72.73% of the stock is currently owned by institutional investors.

About Compass Diversified

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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