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

Key Points

• Shares jumped 7.3% on Monday, trading as high as $9.33 and last at $9.2160 on volume of 1,028,703 shares (about 24% below average).
• Analysts are mixed—one Buy, four Hold and one Sell—leaving a consensus rating of Hold and a consensus price target of $11.50.
• Compass Diversified posted a significant earnings miss (EPS -$0.98 vs. $0.61 expected), has a negative P/E of -2.40 and a market cap of roughly $700.6M, with about 72.7% institutional ownership.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) shot up 7.3% on Monday . The company traded as high as $9.33 and last traded at $9.2160. 1,028,703 shares changed hands during trading, a decline of 24% from the average session volume of 1,361,047 shares. The stock had previously closed at $8.59.

Analysts Set New Price Targets

A number of research firms have recently issued reports on CODI. CJS Securities raised Compass Diversified to an "outperform" rating in a research report on Tuesday, January 27th. Raymond James Financial began coverage on Compass Diversified in a research note on Wednesday, March 11th. They issued a "hold" rating on the stock. B. Riley Financial cut their price target on Compass Diversified from $13.00 to $8.00 and set a "neutral" rating for the company in a report on Tuesday, March 3rd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Compass Diversified in a research report on Friday, December 26th. Finally, Wall Street Zen raised shares of Compass Diversified from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $11.50.

Compass Diversified Price Performance

The company has a current ratio of 2.42, a quick ratio of 1.26 and a debt-to-equity ratio of 19.20. The company has a 50 day moving average of $6.83 and a 200-day moving average of $6.41. The firm has a market capitalization of $700.56 million, a P/E ratio of -2.40 and a beta of 1.00.

Compass Diversified (NYSE:CODI - Get Free Report) last posted its quarterly earnings data 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). On average, sell-side analysts predict that Compass Diversified Holdings will post 1.96 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CODI. RPO LLC bought a new stake in shares of Compass Diversified in the fourth quarter valued at approximately $60,000. Geneos Wealth Management Inc. increased its stake in Compass Diversified by 68.6% during the 2nd quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider's stock worth $62,000 after acquiring an additional 4,000 shares during the period. Focus Partners Wealth acquired a new position in Compass Diversified in the 3rd quarter valued at $70,000. Quantessence Capital LLC acquired a new position in Compass Diversified in the 3rd quarter valued at $70,000. Finally, Voleon Capital Management LP bought a new stake in shares of Compass Diversified during the 2nd quarter valued at $77,000. 72.73% of the stock is owned by institutional investors.

Compass Diversified Company Profile

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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