Compass Minerals International (NYSE:CMP) Shares Gap Down Following Weak Earnings

Key Points

• Compass Minerals International shares gapped down after reporting a quarterly earnings per share (EPS) of ($0.39), missing analyst expectations of ($0.13).
• The company's revenue was $214.60 million for the quarter, surpassing estimates of $208.60 million, while experiencing a 5.8% year-over-year growth.
• Analysts have recently downgraded the stock from a "strong-buy" to a "buy," with target prices ranging from $20.00 to $22.00.

Compass Minerals International, Inc. (NYSE:CMP - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.50, but opened at $20.77. Compass Minerals International shares last traded at $21.22, with a volume of 78,718 shares.

The basic materials company reported ($0.39) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.26). The company had revenue of $214.60 million for the quarter, compared to analyst estimates of $208.60 million. Compass Minerals International had a negative return on equity of 16.70% and a negative net margin of 9.87%. Compass Minerals International's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the prior year, the business posted ($1.05) earnings per share.

Analyst Ratings Changes

Several equities research analysts have weighed in on CMP shares. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $22.00 price target (up from $14.00) on shares of Compass Minerals International in a research report on Monday, June 23rd. BMO Capital Markets increased their price target on Compass Minerals International from $15.00 to $20.00 and gave the stock a "market perform" rating in a research report on Monday, May 12th. Wall Street Zen cut Compass Minerals International from a "buy" rating to a "hold" rating in a research report on Saturday. JPMorgan Chase & Co. cut Compass Minerals International from an "overweight" rating to an "underweight" rating and raised their target price for the company from $15.00 to $18.00 in a research report on Wednesday. Finally, Zacks Research upgraded Compass Minerals International to a "hold" rating in a research report on Monday, August 11th. One research analyst has rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $20.00.

Institutional Investors Weigh In On Compass Minerals International

Institutional investors have recently bought and sold shares of the company. Koch Inc. acquired a new stake in Compass Minerals International in the 4th quarter worth about $79,139,000. Net Worth Advisory Group acquired a new stake in Compass Minerals International in the 1st quarter worth about $178,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Compass Minerals International by 18.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 105,915 shares of the basic materials company's stock worth $1,192,000 after buying an additional 16,558 shares during the last quarter. GAMMA Investing LLC boosted its holdings in Compass Minerals International by 361.4% in the 1st quarter. GAMMA Investing LLC now owns 4,812 shares of the basic materials company's stock worth $45,000 after buying an additional 3,769 shares during the last quarter. Finally, Federated Hermes Inc. acquired a new stake in Compass Minerals International in the 1st quarter worth about $40,000. 99.78% of the stock is currently owned by institutional investors and hedge funds.

Compass Minerals International Trading Up 1.3%

The company has a current ratio of 2.15, a quick ratio of 1.12 and a debt-to-equity ratio of 3.30. The company has a market capitalization of $791.28 million, a price-to-earnings ratio of -6.50 and a beta of 1.11. The company has a fifty day moving average of $20.50 and a 200-day moving average of $15.61.

Compass Minerals International Company Profile

Compass Minerals International, Inc, provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products.