Compass Diversified (NYSE:CODI) Shares Gap Up Following Insider Buying Activity

Key Points

• Insider buying: Shares gapped up to open at $9.90 after insider Stephen Keller bought 30,000 shares on April 6 at an average price of $8.61 ($258,300 total), a transaction disclosed in an SEC filing; the stock last traded near $9.68 on volume ~254,917.
• Analyst backdrop: The consensus rating is a "Hold" (one Buy, four Hold, one Sell) with a consensus target price of $11.50, though recent notes include B. Riley trimming its target to $8 and Zacks moving the stock from "strong sell" to "hold."
• Financials and recent results: Compass Diversified has a market cap of ~$726M and a negative P/E (‑2.48); the company reported a Q1 loss of ($0.98) per share versus a $0.61 estimate, while its 50- and 200-day moving averages are ~$6.89 and $6.42 respectively.

Shares of Compass Diversified Holdings (NYSE:CODI - Get Free Report) gapped up before the market opened on Tuesday following insider buying activity. The stock had previously closed at $9.55, but opened at $9.90. Compass Diversified shares last traded at $9.6750, with a volume of 254,917 shares trading hands.

Specifically, insider Stephen Keller bought 30,000 shares of the stock in a transaction dated Monday, April 6th. The shares were purchased at an average price of $8.61 per share, with a total value of $258,300.00. Following the completion of the acquisition, the insider owned 20,000 shares of the company's stock, valued at $172,200. This represents a -300.00% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Zacks Research raised shares of Compass Diversified from a "strong sell" rating to a "hold" rating in a report on Monday, March 16th. B. Riley Financial dropped their price objective on shares of Compass Diversified from $13.00 to $8.00 and set a "neutral" rating for the company in a research note on Tuesday, March 3rd. CJS Securities raised shares of Compass Diversified to an "outperform" rating in a research note on Tuesday, January 27th. Wall Street Zen raised shares of Compass Diversified from a "sell" rating to a "hold" rating in a research note on Saturday, March 7th. Finally, Compass Point set a $15.00 target price on shares of Compass Diversified in a research note on Tuesday, January 27th. One analyst has rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $11.50.

Compass Diversified Trading Up 1.1%

The firm has a market cap of $726.22 million, a PE ratio of -2.48 and a beta of 1.00. 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 company's 50 day moving average price is $6.89 and its two-hundred day moving average price is $6.42.

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CODI. SG Capital Management LLC bought a new position in shares of Compass Diversified in the fourth quarter worth about $7,626,000. CenterBook Partners LP bought a new position in shares of Compass Diversified in the fourth quarter worth about $6,597,000. Mangrove Partners IM LLC grew its holdings in shares of Compass Diversified by 48.7% in the third quarter. Mangrove Partners IM LLC now owns 3,684,800 shares of the financial services provider's stock worth $24,393,000 after purchasing an additional 1,206,524 shares during the last quarter. Western Standard LLC bought a new position in shares of Compass Diversified in the fourth quarter worth about $5,592,000. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Compass Diversified in the fourth quarter worth about $4,099,000. 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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