Compass Diversified (NYSE:CODI) Given New $10.50 Price Target at B. Riley Financial

Key Points

• B. Riley Financial raised its price target on Compass Diversified from $8.00 to $10.50 while keeping a "neutral" rating, implying about a 7.8% upside from the current share price.
• Compass Diversified posted a big quarterly earnings miss (EPS of -$0.98 vs. $0.61 expected) and its shares traded near $9.74 within a 12‑month range of $4.58–$17.70; analysts' consensus is a Hold with an average target of $12.75.
• Insider Stephen Keller bought 30,000 shares at an average price of $8.61, and institutional/hedge fund ownership stands at roughly 72.7% of the company.

Compass Diversified (NYSE:CODI - Get Free Report) had its target price lifted by investment analysts at B. Riley Financial from $8.00 to $10.50 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the financial services provider's stock. B. Riley Financial's price target suggests a potential upside of 7.80% from the stock's current price.

A number of other research firms have also recently commented on CODI. Raymond James Financial assumed coverage on Compass Diversified in a research report on Wednesday, March 11th. They set a "hold" rating on the stock. Wall Street Zen upgraded Compass Diversified from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings restated a "sell (d)" rating on shares of Compass Diversified in a research report on Friday, December 26th. Compass Point set a $15.00 target price on Compass Diversified in a research note on Tuesday, January 27th. Finally, Zacks Research upgraded Compass Diversified from a "strong sell" rating to a "hold" rating in a research report on Monday, March 16th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Compass Diversified has a consensus rating of "Hold" and an average target price of $12.75.

Compass Diversified Stock Performance

Shares of CODI stock traded up $0.19 on Tuesday, hitting $9.74. The company had a trading volume of 676,773 shares, compared to its average volume of 1,368,827. Compass Diversified has a twelve month low of $4.58 and a twelve month high of $17.70. 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 firm has a market cap of $732.84 million, a P/E ratio of -2.51 and a beta of 1.00. The company has a 50-day moving average price of $6.89 and a 200-day moving average price of $6.42.

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

Insider Activity at Compass Diversified

In other Compass Diversified news, insider Stephen Keller purchased 30,000 shares of the stock in a transaction that occurred on Monday, April 6th. The shares were purchased at an average cost of $8.61 per share, for a total transaction of $258,300.00. Following the completion of the transaction, the insider owned 20,000 shares of the company's stock, valued at $172,200. The trade was a -300.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Compass Diversified

Institutional investors have recently bought and sold shares of the company. Mangrove Partners IM LLC increased its holdings in shares of Compass Diversified by 48.7% during the 3rd quarter. Mangrove Partners IM LLC now owns 3,684,800 shares of the financial services provider's stock worth $24,393,000 after buying an additional 1,206,524 shares during the last quarter. Quantbot Technologies LP lifted its holdings in Compass Diversified by 559.9% in the second quarter. Quantbot Technologies LP now owns 180,074 shares of the financial services provider's stock valued at $1,131,000 after acquiring an additional 152,785 shares during the last quarter. Quantessence Capital LLC purchased a new position in Compass Diversified in the third quarter worth approximately $70,000. Focus Partners Wealth purchased a new position in Compass Diversified in the third quarter worth approximately $70,000. Finally, Alpine Global Management LLC acquired a new stake in Compass Diversified during the fourth quarter worth $177,000. 72.73% of the stock is owned by hedge funds and other 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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