Compass Diversified (NYSE:CODI) Trading 9.1% Higher - Here's Why

Key Points

• Compass Diversified (NYSE:CODI) jumped 9.1% on Thursday, trading as high as $10.61 after opening around $9.86. Trading volume was lighter than usual at about 476,522 shares, well below the average session volume.
• Recent analyst activity was mixed but generally supportive: TD Cowen reiterated a buy rating with a $12.50 target, while the broader consensus remains Hold with an average price target of $12.67.
• The company’s latest move comes amid strong institutional ownership, with 72.73% of shares held by institutions and hedge funds, and several firms adding new positions in the latest quarter.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s share price rose 9.1% on Thursday . The company traded as high as $10.61 and last traded at $10.7530. Approximately 476,522 shares were traded during mid-day trading, a decline of 59% from the average session volume of 1,166,140 shares. The stock had previously closed at $9.86.

Wall Street Analyst Weigh In

CODI has been the subject of a number of recent analyst reports. TD Cowen reiterated a "buy" rating and issued a $12.50 price target on shares of Compass Diversified in a research note on Thursday. Weiss Ratings upgraded shares of Compass Diversified from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, April 21st. Finally, B. Riley Financial upped their target price on Compass Diversified from $8.00 to $10.50 and gave the company a "neutral" rating in a research report on Tuesday, April 7th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $12.67.

Compass Diversified Price Performance

The company has a quick ratio of 1.56, a current ratio of 2.67 and a debt-to-equity ratio of 34.60. The firm has a market capitalization of $796.49 million, a P/E ratio of -2.70 and a beta of 1.26. The business's 50 day moving average is $10.85 and its 200-day moving average is $8.60.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. SG Capital Management LLC acquired a new position in Compass Diversified in the 4th quarter worth about $7,626,000. CenterBook Partners LP acquired a new position in Compass Diversified during the 4th quarter worth about $6,597,000. Western Standard LLC bought a new stake in shares of Compass Diversified in the 4th quarter valued at about $5,592,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Compass Diversified in the 4th quarter worth approximately $4,099,000. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in Compass Diversified by 75.2% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,966,408 shares of the financial services provider's stock valued at $9,439,000 after buying an additional 843,965 shares during the period. 72.73% of the stock is currently owned by institutional investors and hedge funds.

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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