Compass (NYSE:COMP) Stock Sees Heavy Put Option Buying

Key Points

• Put-option activity surged: Traders purchased 17,059 Compass put options, 270% above the typical daily volume of 4,614, signaling unusually heavy downside hedging or bearish interest.
• Shares fell 5.7% to $8.86 during Monday’s trading, while Compass reported quarterly EPS and revenue above analyst expectations. Analysts project $0.20 in full-year EPS.
• Analyst sentiment remains moderately bullish: Compass has a consensus “Moderate Buy” rating and a $13.92 target price, although CEO Robert Reffkin sold 23,456 shares under a pre-arranged Rule 10b5-1 plan.

Compass, Inc. (NYSE:COMP - Get Free Report) was the target of unusually large options trading on Monday. Traders purchased 17,059 put options on the stock. This represents an increase of 270% compared to the typical daily volume of 4,614 put options.

Compass Stock Down 5.7%

Shares of COMP stock traded down $0.54 on Monday, hitting $8.86. 6,082,762 shares of the stock were exchanged, compared to its average volume of 16,029,429. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 1.05. The firm has a market capitalization of $6.71 billion, a P/E ratio of 147.58 and a beta of 2.32. Compass has a fifty-two week low of $6.37 and a fifty-two week high of $13.95. The business has a 50-day moving average of $10.85 and a 200 day moving average of $9.77.

Compass (NYSE:COMP - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.08 by $0.03. The business had revenue of $4.31 billion for the quarter, compared to analyst estimates of $4.11 billion. Compass had a return on equity of 3.62% and a net margin of 0.63%. Equities analysts anticipate that Compass will post 0.20 EPS for the current year.

Insider Activity at Compass

In other news, CEO Robert Reffkin sold 23,456 shares of the company's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $11.70, for a total value of $274,435.20. Following the completion of the sale, the chief executive officer directly owned 7,757,748 shares of the company's stock, valued at $90,765,651.60. This represents a 0.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.85% of the stock is currently owned by company insiders.

Institutional Trading of Compass

Hedge funds and other institutional investors have recently made changes to their positions in the business. IFP Advisors Inc acquired a new stake in Compass in the 2nd quarter valued at $31,000. GAMMA Investing LLC boosted its stake in shares of Compass by 57.7% during the 3rd quarter. GAMMA Investing LLC now owns 5,400 shares of the company's stock worth $48,000 after buying an additional 1,975 shares during the last quarter. Nykredit A S acquired a new position in shares of Compass during the 2nd quarter worth about $77,000. Allworth Financial LP bought a new position in shares of Compass in the 2nd quarter valued at about $110,000. Finally, QRG Capital Management Inc. acquired a new stake in shares of Compass in the second quarter valued at about $152,000. 67.05% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts recently commented on COMP shares. Weiss Ratings cut shares of Compass from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 25th. Barclays lifted their target price on Compass from $15.00 to $16.00 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. UBS Group boosted their target price on Compass from $12.00 to $17.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Zelman & Associates reissued a "hold" rating and issued a $13.50 target price on shares of Compass in a research note on Thursday, August 6th. Finally, The Goldman Sachs Group increased their price target on Compass from $10.50 to $12.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Compass currently has an average rating of "Moderate Buy" and a consensus target price of $13.92.

Compass Company Profile

Compass, Inc is a technology-enabled residential real estate brokerage operating in the United States. The company supports real estate agents and their clients in buying, selling and renting homes, combining brokerage services with digital tools designed to manage listings, marketing, customer relationships and transactions.

Compass provides its agents with a proprietary technology platform that includes customer relationship management, listing and marketing tools, business analytics, and transaction-management capabilities.

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