Compass Diversified (NYSE:CODI) Shares Down 6.5% - Should You Sell?

Key Points

• Compass Diversified Holdings' shares fell by 6.5%, trading at $8.04, with approximately 926,737 shares changing hands, which is a 6% decline from the average volume.
• Wall Street analysts have downgraded the stock from a "buy" to a "hold", with a current average target price of $26.00.
• Large investors have increased their positions in Compass Diversified, with 72.73% of the stock owned by institutional investors, indicating strong institutional interest.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s share price was down 6.5% during trading on Wednesday . The stock traded as low as $8.26 and last traded at $8.04. Approximately 926,737 shares traded hands during trading, a decline of 6% from the average daily volume of 989,011 shares. The stock had previously closed at $8.60.

Wall Street Analyst Weigh In

Several research analysts have issued reports on CODI shares. Wall Street Zen lowered Compass Diversified from a "buy" rating to a "hold" rating in a report on Friday, August 22nd. Weiss Ratings reissued a "sell (d+)" rating on shares of Compass Diversified in a research note on Wednesday, October 8th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $26.00.

Compass Diversified Stock Down 7.3%

The stock has a 50-day simple moving average of $7.17 and a 200-day simple moving average of $9.02. The firm has a market capitalization of $600.04 million, a PE ratio of -6.24 and a beta of 1.08.

Hedge Funds Weigh In On Compass Diversified

Large investors have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC boosted its holdings in shares of Compass Diversified by 10.4% in the first quarter. Allspring Global Investments Holdings LLC now owns 4,789,892 shares of the financial services provider's stock worth $88,709,000 after acquiring an additional 451,731 shares during the period. Bessemer Group Inc. bought a new position in shares of Compass Diversified in the first quarter worth $37,000. Nuveen LLC bought a new position in shares of Compass Diversified in the first quarter worth $7,785,000. Lord Abbett & CO. LLC boosted its holdings in shares of Compass Diversified by 3.2% in the first quarter. Lord Abbett & CO. LLC now owns 1,608,556 shares of the financial services provider's stock worth $30,032,000 after acquiring an additional 49,276 shares during the period. Finally, Y Intercept Hong Kong Ltd bought a new position in shares of Compass Diversified in the first quarter worth $777,000. 72.73% of the stock is owned by institutional investors.

Compass Diversified Company Profile

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, healthcare, safety & security, electronic components, food and foodservice.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.