Compass (NYSE:COMP) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Compass from “strong buy” to “hold,” despite a broader analyst consensus of “moderate buy” and an average price target near $14.15.
• Compass exceeded quarterly expectations, reporting $0.11 in EPS versus $0.08 expected and revenue of $4.31 billion versus $4.11 billion expected. Shares opened at $12.58, near their 52-week high of $13.95.
• CEO Robert Reffkin sold approximately $274,000 of stock under a pre-arranged Rule 10b5-1 plan, while controversy over Compass’s private-listing partnership presents a regulatory and reputational overhang.

Compass (NYSE:COMP - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Thursday,Zacks.com reports.

COMP has been the topic of a number of other reports. BTIG Research reissued a "buy" rating on shares of Compass in a report on Wednesday, July 15th. Zelman & Associates reiterated a "neutral" rating and issued a $13.50 target price on shares of Compass in a research report on Thursday. Oppenheimer raised their target price on shares of Compass from $15.00 to $18.00 and gave the company an "outperform" rating in a research note on Wednesday. UBS Group raised their target price on shares of Compass from $12.00 to $17.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $15.00 price target on shares of Compass in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $14.15.

Compass Stock Performance

Compass stock opened at $12.58 on Thursday. The stock has a market cap of $9.40 billion, a P/E ratio of 209.65 and a beta of 2.36. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 1.11. The stock has a 50 day moving average of $10.80 and a 200-day moving average of $9.75. Compass has a 52 week low of $6.37 and a 52 week high of $13.95.

Compass (NYSE:COMP - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.03. The business had revenue of $4.31 billion during the quarter, compared to the consensus estimate of $4.11 billion. Compass had a net margin of 0.63% and a return on equity of 4.56%. On average, analysts expect that Compass will post 0.22 EPS for the current fiscal year.

Insiders Place Their Bets

In other Compass news, CEO Robert L. Reffkin sold 23,456 shares of Compass stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $11.70, for a total value of $274,435.20. Following the transaction, the chief executive officer owned 7,757,748 shares in the company, valued at approximately $90,765,651.60. The trade was a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 70,368 shares of company stock worth $748,246 in the last ninety days. Company insiders own 2.85% of the company's stock.

Compass News Summary

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Analysts see additional upside: Wells Fargo raised its price target to $13 from $12 while maintaining an equal-weight rating. Goldman Sachs also increased its target to $12 from $10.50. Zelman & Associates reaffirmed a neutral rating but set a $13.50 target, implying potential upside from recent levels. Wells Fargo Compass analyst update
• Positive Sentiment: Better-than-expected earnings support the stock: Compass reported quarterly revenue of $4.31 billion versus the $4.11 billion consensus estimate and adjusted earnings of $0.11 per share versus expectations of $0.08. Record net income, strong cash flow and faster-than-planned cost synergies reinforce the company’s profitability improvement story. Compass second-quarter results
• Neutral Sentiment: Analyst sentiment remains mixed: Zelman’s neutral rating contrasts with buy and outperform ratings from several other firms. The average analyst target is approximately $14.21, but the high valuation and limited profitability leave investors sensitive to execution and housing-market conditions. Zelman neutral rating
• Neutral Sentiment: CEO insider sale was limited: CEO Robert Reffkin sold 23,456 shares for about $274,000 under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by only 0.30%, making it a relatively weak bearish signal. Compass SEC insider filing
• Negative Sentiment: Private-listings controversy is the key overhang: Sen. Elizabeth Warren questioned Compass’s partnership with Chicago’s MRED private-listing network, arguing that the arrangement could increase risks of civil-rights violations and discriminatory access to housing. The criticism adds regulatory, reputational and potential legal risk while a congressional inquiry remains active. Compass defended the strategy as beneficial to consumers and agents, but the controversy may limit near-term upside. Senator Warren questions Compass private listings deal

Compass Company Profile

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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