Compass Diversified (NYSE:CODI) Share Price Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Compass Diversified shares rose above their 200-day moving average, trading as high as $11.19 versus the $10.17 average, with the latest price at $11.115.
• Analyst sentiment is mixed but improving: the stock has an average “Hold” rating and a $16.50 consensus price target, while B. Riley and TD Cowen upgraded it to “Buy” and raised their targets.
• The company reported a quarterly loss of $0.09 per share, negative margins and return on equity, but insiders bought roughly 141,000 shares worth $1.7 million over the past three months; institutional investors own 72.73% of the stock.

Compass Diversified Holdings (NYSE:CODI - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $10.17 and traded as high as $11.19. Compass Diversified shares last traded at $11.1150, with a volume of 360,934 shares trading hands.

Analysts Set New Price Targets

CODI has been the topic of a number of analyst reports. B. Riley Financial upgraded Compass Diversified from a "neutral" rating to a "buy" rating and raised their price target for the company from $11.00 to $15.00 in a research note on Tuesday, August 11th. UBS Group set a $18.00 price objective on Compass Diversified in a research report on Tuesday, August 11th. Wall Street Zen upgraded Compass Diversified from a "sell" rating to a "hold" rating in a report on Saturday, August 29th. TD Cowen raised their target price on Compass Diversified from $12.50 to $18.00 and gave the stock a "buy" rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Compass Diversified in a research note on Friday, July 17th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $16.50.

Compass Diversified Price Performance

The company has a debt-to-equity ratio of 11.90, a quick ratio of 1.10 and a current ratio of 2.26. The stock's 50-day moving average is $10.99 and its 200 day moving average is $10.17. The stock has a market capitalization of $836.29 million, a PE ratio of -5.12 and a beta of 1.26.

Compass Diversified (NYSE:CODI - Get Free Report) last announced 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 10.36% and a negative net margin of 5.38%.The company had revenue of $424.04 million for the quarter. As a group, equities analysts expect that Compass Diversified Holdings will post 0.11 earnings per share for the current year.

Insider Buying and Selling at Compass Diversified

In other news, insider Zachary T. Sawtelle bought 7,000 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The stock was purchased at an average cost of $12.45 per share, with a total value of $87,150.00. Following the transaction, the insider directly owned 63,588 shares in the company, valued at $791,670.60. This trade represents a 12.37% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Teri Shaffer purchased 11,881 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased at an average price of $12.25 per share, for a total transaction of $145,542.25. Following the purchase, the insider directly owned 13,201 shares in the company, valued at $161,712.25. The trade was a 900.08% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have acquired 140,995 shares of company stock valued at $1,715,498. 1.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Compass Diversified

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. CenterBook Partners LP acquired a new position in Compass Diversified in the fourth quarter valued at $6,597,000. Bank of America Corp DE boosted its stake 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 worth $10,269,000 after buying an additional 570,003 shares during the period. Oak Family Advisors LLC purchased a new position in shares of Compass Diversified during the first quarter worth about $1,372,000. Public Employees Retirement System of Ohio purchased a new position in shares of Compass Diversified during the second quarter worth about $1,424,000. Finally, Sei Investments Co. increased its position in Compass Diversified by 69.6% in the 1st quarter. Sei Investments Co. now owns 286,033 shares of the financial services provider's stock valued at $2,248,000 after acquiring an additional 117,423 shares during the period. Hedge funds and other institutional investors own 72.73% of the company's stock.

Compass Diversified Company Profile

Compass Diversified NYSE: CODI is a holding company that acquires and manages controlling interests in established middle-market businesses. The company provides its subsidiaries with capital, strategic guidance, and operational support while allowing them to maintain their own brands and management teams. Its investment approach is focused on building a diversified portfolio of businesses with opportunities for long-term growth.

Compass Diversified's portfolio has included companies serving consumer and industrial markets.

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