Compass Diversified (NYSE:CODI) Shares Up 7.3% - Here's Why

Key Points

• Compass Diversified's stock price increased by 7.3%, reaching a high of $7.43 during mid-day trading, after closing at $6.92 previously.
• Multiple analysts have changed their ratings on the stock; B. Riley downgraded it from "buy" to "neutral," while Wall Street Zen upgraded it from "hold" to "buy," resulting in a consensus rating of "Moderate Buy" with a price target of $26.00.
• Institutional investors hold 72.73% of Compass Diversified's shares, with notable increases in holdings from firms like Cetera Investment Advisers and Tower Research Capital LLC.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s stock price shot up 7.3% during mid-day trading on Wednesday . The company traded as high as $7.32 and last traded at $7.43. 174,383 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 881,998 shares. The stock had previously closed at $6.92.

Analysts Set New Price Targets

A number of brokerages have issued reports on CODI. B. Riley downgraded Compass Diversified from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $30.00 to $18.00 in a research note on Thursday, May 8th. Jefferies Financial Group downgraded Compass Diversified to a "hold" rating in a research note on Friday, June 6th. Finally, Wall Street Zen upgraded Compass Diversified from a "hold" rating to a "buy" rating in a research note on Sunday, August 3rd. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $26.00.

Compass Diversified Stock Up 9.5%

The company has a current ratio of 4.07, a quick ratio of 1.57 and a debt-to-equity ratio of 1.54. The stock has a 50 day simple moving average of $6.51 and a 200 day simple moving average of $13.13. The firm has a market capitalization of $569.91 million, a PE ratio of -5.92 and a beta of 1.05.

Institutional Trading of Compass Diversified

A number of hedge funds have recently modified their holdings of the business. Cetera Investment Advisers boosted its holdings in shares of Compass Diversified by 2.4% during the 4th quarter. Cetera Investment Advisers now owns 31,104 shares of the financial services provider's stock valued at $718,000 after buying an additional 722 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in Compass Diversified by 46.9% in the fourth quarter. Tower Research Capital LLC TRC now owns 3,055 shares of the financial services provider's stock worth $71,000 after acquiring an additional 976 shares in the last quarter. Mackenzie Financial Corp boosted its holdings in Compass Diversified by 4.7% in the first quarter. Mackenzie Financial Corp now owns 22,945 shares of the financial services provider's stock worth $429,000 after acquiring an additional 1,030 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. boosted its holdings in Compass Diversified by 35.1% in the first quarter. Thurston Springer Miller Herd & Titak Inc. now owns 4,316 shares of the financial services provider's stock worth $81,000 after acquiring an additional 1,122 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Compass Diversified by 3.6% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,907 shares of the financial services provider's stock worth $875,000 after acquiring an additional 1,310 shares in the last quarter. Institutional investors own 72.73% of the company's stock.

About Compass Diversified

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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