Compass Diversified (NYSE:CODI) Shares Gap Up - Should You Buy?

Key Points

• Compass Diversified shares gapped up at the open, rising from a prior close of $10.06 to $10.70 before settling near $10.40 in early trading.
• Wall Street sentiment remains cautious, with analysts assigning an average “Hold” rating and a consensus price target of $12.75; recent moves included upgrades from Weiss Ratings and Zacks, while B. Riley lifted its target to $10.50.
• The company has a market cap of about $769 million and mixed technical/financial signals, including a negative P/E ratio, a high debt-to-equity ratio, and shares trading above their 200-day moving average but below the 50-day average.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $10.06, but opened at $10.70. Compass Diversified shares last traded at $10.3950, with a volume of 126,656 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have weighed in on CODI. Weiss Ratings upgraded Compass Diversified from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, April 21st. Zacks Research upgraded Compass Diversified from a "strong sell" rating to a "hold" rating in a research report on Monday, March 16th. Finally, B. Riley Financial raised their target price on shares of Compass Diversified from $8.00 to $10.50 and gave the company a "neutral" rating in a report on Tuesday, April 7th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $12.75.

Compass Diversified Trading Up 1.6%

The stock has a market cap of $769.33 million, a P/E ratio of -2.62 and a beta of 1.26. The company has a debt-to-equity ratio of 34.60, a quick ratio of 1.56 and a current ratio of 2.67. The stock's fifty day moving average is $10.96 and its 200 day moving average is $8.49.

Hedge Funds Weigh In On Compass Diversified

A number of institutional investors and hedge funds have recently modified their holdings of CODI. Essential Partners LLC increased its position in shares of Compass Diversified by 9,263.2% during the 1st quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 5,280 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in Compass Diversified by 68.6% in the second quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider's stock worth $62,000 after buying an additional 4,000 shares during the last quarter. Focus Partners Wealth purchased a new position in Compass Diversified during the third quarter worth $70,000. Quantessence Capital LLC purchased a new position in Compass Diversified during the third quarter worth $70,000. Finally, Diversify Wealth Management LLC bought a new position in Compass Diversified during the second quarter valued at $81,000. Hedge funds and other institutional investors own 72.73% of the company's stock.

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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