Compass Diversified (NYSE:CODI) Reaches New 12-Month High - Still a Buy?

Key Points

• CODI reached a new 52-week high of $12.41 (last $12.08) despite reporting a quarterly EPS miss of ($0.62) versus estimates of ($0.06) and revenue below consensus.
• Analysts are mixed: MarketBeat's consensus is a "Hold" with an average price target of $12.75 (one Buy, four Holds, one Sell), and several firms recently adjusted their targets and ratings.
• Insider Stephen Keller bought 30,000 shares at an average $8.61 on April 6, and institutional investors own about 72.73% of the stock.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s stock price reached a new 52-week high on Thursday . The company traded as high as $12.41 and last traded at $12.0770, with a volume of 207794 shares trading hands. The stock had previously closed at $11.62.

Analysts Set New Price Targets

A number of research firms recently weighed in on CODI. Weiss Ratings upgraded Compass Diversified from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, April 21st. B. Riley Financial raised their price objective on Compass Diversified from $8.00 to $10.50 and gave the stock a "neutral" rating in a research report on Tuesday, April 7th. Compass Point set a $15.00 price objective on Compass Diversified in a research report on Tuesday, January 27th. CJS Securities upgraded Compass Diversified to an "outperform" rating in a research report on Tuesday, January 27th. Finally, Wall Street Zen upgraded Compass Diversified from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Compass Diversified currently has an average rating of "Hold" and an average price target of $12.75.

Compass Diversified Price Performance

The stock has a 50 day moving average price of $8.58 and a two-hundred day moving average price of $6.95. The company has a debt-to-equity ratio of 19.20, a quick ratio of 1.26 and a current ratio of 2.42. The company has a market capitalization of $903.26 million, a PE ratio of -3.10 and a beta of 1.29.

Compass Diversified (NYSE:CODI - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The financial services provider reported ($0.62) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.56). The firm had revenue of $426.86 million during the quarter, compared to the consensus estimate of $437.75 million. Equities analysts forecast that Compass Diversified Holdings will post 0.09 earnings per share for the current year.

Insider Buying and Selling at Compass Diversified

In related news, insider Stephen Keller bought 30,000 shares of Compass Diversified stock in a transaction that occurred on Monday, April 6th. The stock was purchased at an average cost of $8.61 per share, for a total transaction of $258,300.00. Following the acquisition, the insider owned 20,000 shares in the company, valued at $172,200. This trade represents a -300.00% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Compass Diversified

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Compass Diversified by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,635 shares of the financial services provider's stock worth $740,000 after purchasing an additional 1,728 shares during the last quarter. Rhumbline Advisers lifted its holdings in Compass Diversified by 2.0% in the 3rd quarter. Rhumbline Advisers now owns 95,717 shares of the financial services provider's stock worth $634,000 after purchasing an additional 1,874 shares during the last quarter. PNC Financial Services Group Inc. lifted its holdings in Compass Diversified by 8.8% in the 3rd quarter. PNC Financial Services Group Inc. now owns 23,423 shares of the financial services provider's stock worth $155,000 after purchasing an additional 1,896 shares during the last quarter. Sei Investments Co. lifted its holdings in Compass Diversified by 1.8% in the 3rd quarter. Sei Investments Co. now owns 115,570 shares of the financial services provider's stock worth $765,000 after purchasing an additional 2,022 shares during the last quarter. Finally, Brown Advisory Inc. lifted its holdings in Compass Diversified by 3.9% in the 2nd quarter. Brown Advisory Inc. now owns 80,734 shares of the financial services provider's stock worth $507,000 after purchasing an additional 3,000 shares during the last quarter. 72.73% of the stock is currently owned by institutional investors and hedge funds.

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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