Irenic Capital Management LP Makes New Investment in Compass, Inc. $COMP

Key Points

• Irenic Capital Management acquired 1.8 million Compass shares worth approximately $22.2 million, representing about 0.24% of the company; institutional investors collectively own 67.05% of Compass.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $14.15. Oppenheimer and Barclays recently raised their price targets, while other analysts maintained or downgraded their ratings.
• Compass exceeded quarterly expectations, reporting adjusted earnings of $0.11 per share versus $0.08 expected and revenue of $4.31 billion versus $4.11 billion forecast. CEO Robert Reffkin sold 23,456 shares under a pre-arranged Rule 10b5-1 plan.

Irenic Capital Management LP bought a new position in Compass, Inc. (NYSE:COMP - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 1,796,898 shares of the company's stock, valued at approximately $22,156,000. Compass comprises 1.1% of Irenic Capital Management LP's holdings, making the stock its 22nd largest holding. Irenic Capital Management LP owned approximately 0.24% of Compass at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Fund 1 Investments LLC bought a new stake in Compass during the second quarter worth $2,837,000. Nykredit A S purchased a new position in Compass in the second quarter worth $77,000. Beaconlight Capital LLC bought a new position in Compass in the 2nd quarter valued at $8,013,000. Finally, Wellington Management Group LLP bought a new position in Compass in the 2nd quarter valued at $41,838,000. 67.05% of the stock is owned by institutional investors.

Analyst Ratings Changes

COMP has been the topic of a number of recent analyst reports. Oppenheimer lifted their target price on Compass from $15.00 to $18.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 5th. Zelman & Associates reaffirmed a "hold" rating and issued a $13.50 price objective on shares of Compass in a research report on Thursday, August 6th. Weiss Ratings upgraded shares of Compass from a "sell (d+)" rating to a "hold (c)" rating in a research note on Friday, August 21st. Zacks Research lowered shares of Compass from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 6th. Finally, Barclays lifted their price target on shares of Compass from $15.00 to $16.00 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $14.15.

Insider Activity at Compass

In related news, CEO Robert Reffkin sold 23,456 shares of the firm's 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 completion of the transaction, the chief executive officer directly owned 7,757,748 shares of the company's stock, valued at approximately $90,765,651.60. This trade represents a 0.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.85% of the company's stock.

Compass Trading Up 0.7%

Shares of Compass stock opened at $11.14 on Friday. Compass, Inc. has a 52-week low of $6.37 and a 52-week high of $13.95. The stock's 50-day simple moving average is $11.89 and its 200 day simple moving average is $9.66. The stock has a market capitalization of $8.44 billion, a P/E ratio of 185.67 and a beta of 2.32. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.06 and a current ratio of 1.06.

Compass (NYSE:COMP - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.08 by $0.03. The firm had revenue of $4.31 billion during the quarter, compared to analyst estimates of $4.11 billion. Compass had a net margin of 0.63% and a return on equity of 3.62%. As a group, research analysts anticipate that Compass, Inc. will post 0.24 EPS for the current year.

Compass 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.

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