Insider Buying: Compass Diversified (NYSE:CODI) Insider Acquires $87,150.00 in Stock

Key Points

• Insider purchase: Compass Diversified insider Zachary Sawtelle bought 7,000 shares at $12.45 each, investing $87,150 and increasing his ownership by 12.37% to 63,588 shares.
• Financial performance: The company reported quarterly revenue of $424.04 million and a loss of $0.09 per share. Its net margin and return on equity remained negative.
• Analyst outlook: Ratings are mixed, but B. Riley and TD Cowen upgraded or maintained a buy view, while the average analyst rating is “Hold” with a $16.50 price target.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) insider Zachary Sawtelle bought 7,000 shares of the firm's stock in a transaction on Thursday, August 13th. The shares were acquired at an average price of $12.45 per share, for a total transaction of $87,150.00. Following the transaction, the insider owned 63,588 shares in the company, valued at approximately $791,670.60. This represents a 12.37% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Compass Diversified Price Performance

Shares of NYSE CODI traded up $0.20 during midday trading on Thursday, reaching $12.28. The company's stock had a trading volume of 743,162 shares, compared to its average volume of 1,105,443. The company has a debt-to-equity ratio of 34.60, a quick ratio of 1.56 and a current ratio of 2.67. Compass Diversified Holdings has a fifty-two week low of $4.58 and a fifty-two week high of $13.24. The business's 50 day moving average price is $10.41 and its two-hundred day moving average price is $9.36. The company has a market cap of $923.57 million, a P/E ratio of -5.66 and a beta of 1.27.

Compass Diversified (NYSE:CODI - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share (EPS) for the quarter. The company had revenue of $424.04 million during the quarter. Compass Diversified had a negative net margin of 5.38% and a negative return on equity of 9.53%. On average, analysts forecast that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

Institutional Investors Weigh In On Compass Diversified

Several institutional investors and hedge funds have recently added to or reduced their stakes in CODI. Jacobs Levy Equity Management Inc. boosted its holdings in shares of Compass Diversified by 75.2% in the 4th 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 purchasing an additional 843,965 shares in the last quarter. SG Capital Management LLC acquired a new position in shares of Compass Diversified during the 4th quarter worth $7,626,000. CenterBook Partners LP bought a new stake in shares of Compass Diversified during the 4th quarter worth $6,597,000. Bank of America Corp DE boosted its stake in Compass Diversified by 77.4% in the first quarter. Bank of America Corp DE now owns 1,306,527 shares of the financial services provider's stock valued at $10,269,000 after buying an additional 570,003 shares in the last quarter. Finally, State Street Corp boosted its stake in Compass Diversified by 2.3% in the fourth quarter. State Street Corp now owns 1,238,792 shares of the financial services provider's stock valued at $5,946,000 after buying an additional 27,774 shares in the last quarter. 72.73% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CODI has been the topic of several analyst reports. B. Riley Financial raised Compass Diversified from a "neutral" rating to a "buy" rating and increased their target price for the stock from $11.00 to $15.00 in a report 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 objective on shares of Compass Diversified in a research report on Tuesday. Finally, TD Cowen increased their price objective on shares of Compass Diversified from $12.50 to $18.00 and gave the stock a "buy" rating in a research note on Tuesday. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $16.50.

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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