Compass Diversified (NYSE:CODI) Shares Gap Up - Here's Why

Key Points

• Compass Diversified's stock price gapped up significantly from a closing price of $7.35 to an opening price of $8.47, with last trades at $7.93 and over 1.1 million shares traded.
• Analyst ratings show a mix of opinions, with Wall Street Zen lowering the rating from "buy" to "hold," while the consensus rating remains "hold" with an average target price of $26.00.
• Institutional investors own 72.73% of Compass Diversified's shares, indicating strong backing from hedge funds after multiple firms increased their stakes in the stock during the first quarter.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $7.35, but opened at $8.47. Compass Diversified shares last traded at $7.93, with a volume of 1,121,096 shares trading hands.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Compass Diversified from a "buy" rating to a "hold" rating in a research note on Friday, August 22nd. Weiss Ratings reissued a "sell (d+)" rating on shares of Compass Diversified in a report on Wednesday. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Compass Diversified currently has a consensus rating of "Hold" and an average target price of $26.00.

Compass Diversified Price Performance

The company's 50 day moving average price is $7.06 and its 200 day moving average price is $9.31. The firm has a market cap of $570.67 million, a PE ratio of -6.15 and a beta of 1.08.

Hedge Funds Weigh In On Compass Diversified

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

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.

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