Insider Buying: Compass Diversified (NYSE:CODI) Insider Buys 25,000 Shares

Key Points

• Compass Diversified insider Zachary Sawtelle bought 25,000 shares at an average price of $11.99, investing approximately $299,750 and increasing his direct ownership by 79.14% to 56,588 shares.
• CODI shares traded at $12.28, near the upper end of their 12-month range of $4.58 to $13.24. The company reported quarterly revenue of $424.04 million and a loss of $0.09 per share.
• Analyst sentiment has improved, with several firms raising price targets or upgrading the stock; however, the overall consensus remains “Hold”, with an average price target of $16.50.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) insider Zachary Sawtelle purchased 25,000 shares of Compass Diversified stock in a transaction that occurred on Wednesday, August 12th. The shares were bought at an average cost of $11.99 per share, for a total transaction of $299,750.00. Following the transaction, the insider directly owned 56,588 shares of the company's stock, valued at $678,490.12. This represents a 79.14% increase in their ownership of the stock. The transaction 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 $0.20 during midday trading on Thursday, hitting $12.28. The company had a trading volume of 743,162 shares, compared to its average volume of 1,105,443. The firm has a 50-day moving average price of $10.41 and a 200-day moving average price of $9.36. The company has a market capitalization of $923.57 million, a PE ratio of -5.66 and a beta of 1.27. The company has a current ratio of 2.67, a quick ratio of 1.56 and a debt-to-equity ratio of 34.60. Compass Diversified Holdings has a twelve month low of $4.58 and a twelve month high of $13.24.

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

Hedge Funds Weigh In On Compass Diversified

Several large investors have recently modified their holdings of CODI. Essential Partners LLC increased its holdings in Compass Diversified by 9,263.2% in the first quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 5,280 shares during the period. RPO LLC bought a new stake in shares of Compass Diversified in the 4th quarter valued at about $60,000. Geneos Wealth Management Inc. increased its stake in shares of Compass Diversified by 68.6% in the second quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider's stock valued at $62,000 after buying an additional 4,000 shares during the period. Focus Partners Wealth bought a new position in shares of Compass Diversified during the third quarter worth about $70,000. Finally, Quantessence Capital LLC acquired a new position in shares of Compass Diversified in the third quarter worth approximately $70,000. Institutional investors own 72.73% of the company's stock.

Analyst Ratings Changes

CODI has been the subject of a number of recent analyst reports. TD Cowen upped their price target on shares of Compass Diversified from $12.50 to $18.00 and gave the stock a "buy" rating in a report on Tuesday. UBS Group set a $18.00 price objective on shares of Compass Diversified in a research report on Tuesday. B. Riley Financial upgraded Compass Diversified from a "neutral" rating to a "buy" rating and lifted their price target for the company from $11.00 to $15.00 in a research note on Tuesday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Compass Diversified in a research report on Friday, July 17th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Compass Diversified has a consensus rating of "Hold" and an average target price 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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