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

Key Points

• Price breakout: CODI shares crossed above their 200-day moving average of $6.57, trading as high as $10.42 and last at $10.365 with volume around 1.23 million shares.
• Analyst view: Sentiment is mixed—one Buy, four Hold and one Sell—giving an average rating of Hold and an average target price of $12.75 (B. Riley recently raised its target to $10.50).
• Earnings and insider activity: The company reported a large quarterly EPS miss (‑$0.98 vs. $0.61 expected), but insider Stephen Keller purchased 30,000 shares at $8.61, which may signal insider confidence despite the weak results.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $6.57 and traded as high as $10.42. Compass Diversified shares last traded at $10.3650, with a volume of 1,227,448 shares.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Wall Street Zen raised shares of Compass Diversified from a "sell" rating to a "hold" rating in a report on Saturday, March 7th. B. Riley Financial upped their price target on shares of Compass Diversified from $8.00 to $10.50 and gave the company a "neutral" rating in a research note on Tuesday, April 7th. Weiss Ratings reiterated a "sell (d)" rating on shares of Compass Diversified in a research report on Friday, December 26th. Zacks Research upgraded shares of Compass Diversified from a "strong sell" rating to a "hold" rating in a report on Monday, March 16th. Finally, CJS Securities upgraded shares of Compass Diversified to an "outperform" rating in a research report on Tuesday, January 27th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Compass Diversified presently has an average rating of "Hold" and an average target price of $12.75.

Compass Diversified Trading Down 0.5%

The stock has a market cap of $779.86 million, a P/E ratio of -2.67 and a beta of 1.00. 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 price of $7.38 and a two-hundred day moving average price of $6.57.

Compass Diversified (NYSE:CODI - Get Free Report) last issued its quarterly earnings results on Wednesday, January 14th. The financial services provider reported ($0.98) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.61 by ($1.59). On average, research analysts expect that Compass Diversified Holdings will post 1.96 EPS for the current fiscal year.

Insider Activity

In other news, insider Stephen Keller bought 30,000 shares of the stock in a transaction dated Monday, April 6th. The stock was purchased 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 of the company's stock, valued at $172,200. The trade was a -300.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 1.80% of the company's stock.

Institutional Trading of Compass Diversified

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. SG Capital Management LLC bought a new stake in Compass Diversified in the fourth quarter worth about $7,626,000. CenterBook Partners LP purchased a new stake in shares of Compass Diversified in the fourth quarter worth approximately $6,597,000. Mangrove Partners IM LLC raised its holdings in shares of Compass Diversified by 48.7% in the third quarter. Mangrove Partners IM LLC now owns 3,684,800 shares of the financial services provider's stock worth $24,393,000 after buying an additional 1,206,524 shares during the period. Western Standard LLC bought a new stake in shares of Compass Diversified during the 4th quarter worth approximately $5,592,000. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new stake in shares of Compass Diversified during the 4th quarter worth approximately $4,099,000. 72.73% of the stock is owned by hedge funds and other institutional investors.

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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