Compass Diversified Sees Unusually High Options Volume (NYSE:CODI)

Key Points

• Unusually high options activity: Investors bought 21,178 call options on Compass Diversified, more than 22 times the average daily volume of 895 calls.
• Insider buying continued: Company insiders purchased 140,995 shares worth approximately $1.72 million over the past 90 days, while institutional investors own 72.73% of the stock.
• Analyst outlook is mixed: The stock has a consensus “Hold” rating and a $17.00 price target, despite several analysts issuing Buy ratings and targets ranging from $15 to $18; CODI recently traded near $10.32.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) was the target of some unusual options trading activity on Thursday. Investors acquired 21,178 call options on the stock. This represents an increase of 2,266% compared to the average daily volume of 895 call options.

Compass Diversified Stock Performance

Compass Diversified stock traded up $0.04 during mid-day trading on Thursday, reaching $10.32. The company's stock had a trading volume of 116,525 shares, compared to its average volume of 983,280. The company has a current ratio of 2.26, a quick ratio of 1.10 and a debt-to-equity ratio of 11.90. Compass Diversified has a twelve month low of $4.58 and a twelve month high of $13.25. The business has a 50 day moving average price of $11.23 and a 200-day moving average price of $10.93. The firm has a market cap of $776.63 million, a price-to-earnings ratio of -4.76 and a beta of 1.30.

Compass Diversified (NYSE:CODI - Get Free Report) last released its quarterly earnings data 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 for the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. Sell-side analysts predict that Compass Diversified will post 0.08 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Eugene Kim purchased 20,000 shares of the stock in a transaction that occurred on Wednesday, August 26th. The stock was acquired at an average cost of $11.47 per share, with a total value of $229,400.00. Following the acquisition, the insider owned 20,000 shares in the company, valued at approximately $229,400. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Zachary Sawtelle purchased 25,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased at an average cost of $11.99 per share, with a total value of $299,750.00. Following the completion of the acquisition, the insider owned 56,588 shares in the company, valued at approximately $678,490.12. This represents a 79.14% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders bought 140,995 shares of company stock valued at $1,715,498. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Compass Diversified

Several institutional investors have recently modified their holdings of the company. Public Employees Retirement System of Ohio bought a new position in Compass Diversified in the 2nd quarter worth about $1,424,000. Renaissance Technologies LLC acquired a new stake in shares of Compass Diversified in the first quarter valued at approximately $736,000. Bank of America Corp DE raised its holdings in shares of Compass Diversified by 77.4% during 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 during the last quarter. Sei Investments Co. raised its holdings in shares of Compass Diversified by 69.6% during the first quarter. Sei Investments Co. now owns 286,033 shares of the financial services provider's stock valued at $2,248,000 after buying an additional 117,423 shares during the last quarter. Finally, Oak Family Advisors LLC bought a new stake in shares of Compass Diversified during the first quarter valued at approximately $1,372,000. Institutional investors own 72.73% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on CODI shares. Compass Point set a $17.00 price objective on shares of Compass Diversified in a research report on Tuesday, October 13th. B. Riley Financial raised Compass Diversified from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $11.00 to $15.00 in a research report on Tuesday, August 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Compass Diversified in a research note on Thursday, October 15th. Wall Street Zen raised Compass Diversified from a "sell" rating to a "hold" rating in a report on Saturday, August 29th. Finally, UBS Group set a $18.00 price target on Compass Diversified in a report on Tuesday, August 11th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $17.00.

About Compass Diversified

Compass Diversified is a holding company that acquires and manages controlling interests in middle-market businesses. Rather than operating as a single-product company, it owns a diversified portfolio of subsidiaries across consumer and industrial markets and provides them with capital, strategic guidance and operational support.

The company's portfolio has included businesses that develop and sell outdoor and recreational equipment, apparel and accessories, home and wellness products, food and beverage items, and specialty industrial products.

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