Insider Buying: Compass Diversified (NYSE:CODI) Insider Buys $145,542.25 in Stock

Key Points

• Insider confidence increased: Teri Shaffer bought 11,881 Compass Diversified shares for $145,542.25, expanding her position by more than 900% to 13,201 shares.
• Stock performance improved: CODI recently traded at $12.70, near its 52-week high of $13.25, while institutional investors owned 72.73% of the company.
• Recovery outlook remains mixed: Analysts raised price targets as high as $18, but Compass Diversified reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) insider Teri Shaffer purchased 11,881 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were acquired at an average price of $12.25 per share, for a total transaction of $145,542.25. Following the completion of the transaction, the insider directly owned 13,201 shares of the company's stock, valued at $161,712.25. The trade was a 900.08% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Compass Diversified Price Performance

NYSE CODI traded up $0.42 during trading hours on Friday, hitting $12.70. 1,063,399 shares of the company's stock traded hands, compared to its average volume of 1,105,218. Compass Diversified Holdings has a 52-week low of $4.58 and a 52-week high of $13.25. The company has a market capitalization of $955.40 million, a PE ratio of -5.85 and a beta of 1.27. The company has a debt-to-equity ratio of 34.60, a current ratio of 2.67 and a quick ratio of 1.56. The firm's 50-day moving average is $10.44 and its 200-day moving average is $9.41.

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 business had revenue of $424.04 million during the quarter. Compass Diversified had a negative return on equity of 9.53% and a negative net margin of 5.38%. Equities analysts forecast that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

Institutional Trading of Compass Diversified

Institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC acquired a new stake in Compass Diversified during the first quarter worth $294,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Compass Diversified by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,635 shares of the financial services provider's stock worth $740,000 after purchasing an additional 1,728 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Compass Diversified by 6.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 154,458 shares of the financial services provider's stock valued at $2,884,000 after buying an additional 10,006 shares during the period. Jane Street Group LLC lifted its stake in Compass Diversified by 345.5% in the first quarter. Jane Street Group LLC now owns 193,907 shares of the financial services provider's stock worth $3,620,000 after acquiring an additional 150,386 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Compass Diversified by 5.5% during the 2nd quarter. Geode Capital Management LLC now owns 862,549 shares of the financial services provider's stock worth $5,416,000 after purchasing an additional 44,938 shares during the last quarter. Hedge funds and other institutional investors own 72.73% of the company's stock.

Compass Diversified News Roundup

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.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. TD Cowen boosted their price objective on Compass Diversified from $12.50 to $18.00 and gave the stock 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. B. Riley Financial upgraded Compass Diversified from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $11.00 to $15.00 in a report on Tuesday. Finally, UBS Group set a $18.00 price target on shares of Compass Diversified in a research report on Tuesday. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Compass Diversified currently has an average rating of "Hold" and an average target price of $16.50.

About Compass Diversified

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.

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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