Compass Diversified (NYSE:CODI) Stock Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• Technical breakout: CODI crossed above its 200-day moving average (200‑day MA $6.89), trading as high as $11.67 and last around $11.36 on heavy volume.
• Analyst sentiment is mixed with an average rating of "Hold" and an average price target of $12.75, following several upgrades and a recent price-target increase to $10.50 by B. Riley.
• Insider and institutional buying: insider Stephen Keller purchased 30,000 shares at $8.61, and institutions/hedge funds own roughly 72.73% of the stock, indicating notable investor interest.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s stock price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $6.89 and traded as high as $11.67. Compass Diversified shares last traded at $11.3570, with a volume of 678,419 shares traded.

Analyst Ratings Changes

CODI has been the subject of a number of recent research reports. Zacks Research upgraded Compass Diversified from a "strong sell" rating to a "hold" rating in a report on Monday, March 16th. B. Riley Financial increased their price target on Compass Diversified from $8.00 to $10.50 and gave the company a "neutral" rating in a research report on Tuesday, April 7th. CJS Securities upgraded Compass Diversified to an "outperform" rating in a research note on Tuesday, January 27th. Weiss Ratings raised Compass Diversified from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, April 21st. Finally, Raymond James Financial assumed coverage on shares of Compass Diversified in a research note on Wednesday, March 11th. They set a "hold" rating on the stock. One investment 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's stock. According to data from MarketBeat.com, Compass Diversified has an average rating of "Hold" and an average price target of $12.75.

Compass Diversified Trading Down 3.8%

The firm has a market capitalization of $854.46 million, a price-to-earnings ratio of -2.93 and a beta of 1.00. The company has a debt-to-equity ratio of 19.20, a quick ratio of 1.26 and a current ratio of 2.42. The company has a 50-day moving average price of $8.33 and a 200-day moving average price of $6.89.

Insiders Place Their Bets

In related news, insider Stephen Keller bought 30,000 shares of the stock in a transaction dated Monday, April 6th. The stock was acquired at an average price of $8.61 per share, for a total transaction of $258,300.00. Following the acquisition, the insider owned 20,000 shares in the company, valued at approximately $172,200. This represents a -300.00% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Compass Diversified

Several large investors have recently bought and sold shares of CODI. AQR Capital Management LLC acquired a new stake in shares of Compass Diversified during the first quarter worth about $294,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Compass Diversified by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,635 shares of the financial services provider's stock worth $740,000 after buying an additional 1,728 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Compass Diversified by 6.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 154,458 shares of the financial services provider's stock worth $2,884,000 after buying an additional 10,006 shares during the last quarter. Jane Street Group LLC increased its position in Compass Diversified by 345.5% during the first quarter. Jane Street Group LLC now owns 193,907 shares of the financial services provider's stock worth $3,620,000 after buying an additional 150,386 shares during the period. Finally, Geode Capital Management LLC increased its position in Compass Diversified by 5.5% during the second quarter. Geode Capital Management LLC now owns 862,549 shares of the financial services provider's stock worth $5,416,000 after buying an additional 44,938 shares during the period. Institutional investors and hedge funds own 72.73% of the company's stock.

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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