Renaissance Technologies LLC Invests $736,000 in Compass Diversified Holdings $CODI

Key Points

• Renaissance Technologies acquired 93,607 Compass Diversified shares worth approximately $736,000, while institutional investors collectively own 72.73% of CODI.
• Insiders made significant purchases, including 25,000 shares by Zachary T. Sawtelle and 10,000 shares by Stephen Keller; insiders bought 120,995 shares worth roughly $1.49 million over the quarter.
• Analyst sentiment remains mixed but includes several upgrades and higher price targets, with an average rating of “Hold” and a $16.50 target. CODI reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity.

Renaissance Technologies LLC acquired a new stake in Compass Diversified Holdings (NYSE:CODI - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 93,607 shares of the financial services provider's stock, valued at approximately $736,000. Renaissance Technologies LLC owned approximately 0.12% of Compass Diversified at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of CODI. Geneos Wealth Management Inc. boosted its holdings in Compass Diversified by 68.6% during the 2nd quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider's stock valued at $62,000 after acquiring an additional 4,000 shares during the period. Focus Partners Wealth purchased a new stake in Compass Diversified during the third quarter worth about $70,000. Quantessence Capital LLC purchased a new stake in Compass Diversified during the third quarter worth about $70,000. Diversify Wealth Management LLC acquired a new stake in shares of Compass Diversified during the second quarter worth about $81,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of Compass Diversified during the third quarter worth about $81,000. Hedge funds and other institutional investors own 72.73% of the company's stock.

Insider Activity

In other news, insider Stephen Keller acquired 10,000 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was acquired at an average cost of $12.01 per share, with a total value of $120,100.00. Following the transaction, the insider owned 51,840 shares in the company, valued at approximately $622,598.40. This trade represents a 23.90% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Zachary T. Sawtelle bought 25,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased at an average price of $11.99 per share, with a total value of $299,750.00. Following the purchase, the insider owned 56,588 shares of the company's stock, valued at approximately $678,490.12. This represents a 79.14% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have purchased 120,995 shares of company stock worth $1,486,098. Insiders own 1.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on CODI shares. TD Cowen raised their price objective on shares of Compass Diversified from $12.50 to $18.00 and gave the company a "buy" rating in a research note on Tuesday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Compass Diversified in a research note on Friday, July 17th. UBS Group set a $18.00 price target on shares of Compass Diversified in a research report on Tuesday. Wall Street Zen downgraded shares of Compass Diversified from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, B. Riley Financial raised Compass Diversified from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $11.00 to $15.00 in a research report on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $16.50.

Compass Diversified Stock Performance

Shares of CODI opened at $12.70 on Friday. The stock has a 50-day simple moving average of $10.48 and a 200-day simple moving average of $9.43. The company has a debt-to-equity ratio of 11.90, a quick ratio of 1.56 and a current ratio of 2.26. The stock has a market capitalization of $955.40 million, a PE ratio of -5.85 and a beta of 1.27. Compass Diversified Holdings has a 1 year low of $4.58 and a 1 year high of $13.25.

Compass Diversified (NYSE:CODI - Get Free Report) last released its earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. The firm had revenue of $424.04 million for the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. On average, analysts predict that Compass Diversified Holdings will post 0.22 earnings per share for the current fiscal year.

Key Stories Impacting Compass Diversified

Here are the key news stories impacting Compass Diversified this week:

• Positive Sentiment: Analyst upgrades and higher targets: B. Riley Financial upgraded CODI from “Neutral” to “Buy” and raised its price target from $11 to $15. TD Cowen increased its target from $12.50 to $18 and maintained a “Buy” rating, while UBS also set an $18 target. The higher targets are above recent trading levels and likely improved investor sentiment. B. Riley Financial upgrades Compass Diversified
• Positive Sentiment: Multiple insider purchases: Zachary T. Sawtelle bought 25,000 shares for approximately $299,750 on August 12 and another 7,000 shares for $87,150 on August 13. Stephen Keller purchased 10,000 shares for about $120,100. The transactions materially increased their ownership and may signal that insiders believe CODI is undervalued or expect a business recovery. SEC insider ownership filing
• Positive Sentiment: Turnaround and transaction optimism: Reports have highlighted a $292 million sale and potential management-fee savings, reinforcing the possibility of improved liquidity, lower expenses and stronger portfolio performance. Compass Diversified’s $292 million sale
• Neutral Sentiment: Unusual options activity: Elevated options volume shows increased attention around CODI and could amplify near-term volatility, but it does not establish a clear bullish or bearish direction. Unusual options trading in Compass Diversified
• Negative Sentiment: Losses remain a risk: CODI reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity. Its recovery case therefore depends on successfully improving portfolio-company performance and converting recent strategic developments into sustained earnings.

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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