Compass Diversified (NYSE:CODI) Stock Price Crosses Above 50 Day Moving Average - Should You Sell?

Key Points

• Compass Diversified shares rose above their 50-day moving average, trading as high as $11.30 versus a 50-day average of $11.05. The stock’s 200-day average was $9.70.
• Analyst opinions remain mixed, resulting in a consensus “Hold” rating and a $17.00 price target. Four analysts rate the stock a Buy, two rate it a Hold and one rates it a Sell.
• 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. Compass Diversified recently reported a quarterly loss of $0.09 per share and negative profitability metrics.

Compass Diversified Holdings (NYSE:CODI - Get Free Report) shares passed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $11.05 and traded as high as $11.30. Compass Diversified shares last traded at $11.2830, with a volume of 943,199 shares trading hands.

Analyst Ratings Changes

Several analysts have issued reports on CODI shares. LADENBURG THALM/SH SH initiated coverage on Compass Diversified in a research note on Tuesday, October 13th. They issued a "buy" rating and a $17.00 target price for the company. UBS Group set a $18.00 price target on shares of Compass Diversified in a research note on Tuesday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Compass Diversified in a report on Thursday, October 15th. B. Riley Financial raised shares of Compass Diversified from a "neutral" rating to a "buy" rating and upped their price objective for the company from $11.00 to $15.00 in a research note on Tuesday, August 11th. Finally, Wall Street Zen raised shares of Compass Diversified from a "sell" rating to a "hold" rating in a report on Saturday, August 29th. Four 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. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $17.00.

Compass Diversified Price Performance

The company has a current ratio of 2.26, a quick ratio of 1.10 and a debt-to-equity ratio of 11.90. The business's 50 day moving average price is $11.05 and its two-hundred day moving average price is $9.70. The stock has a market cap of $848.89 million, a P/E ratio of -5.20 and a beta of 1.30.

Compass Diversified (NYSE:CODI - Get Free Report) last announced its earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share (EPS) for the quarter. The firm had revenue of $424.04 million during the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. As a group, sell-side analysts expect that Compass Diversified Holdings will post 0.08 earnings per share for the current fiscal year.

Insider Buying and Selling at Compass Diversified

In other news, insider Teri Shaffer bought 11,881 shares of the stock in a transaction on Wednesday, August 12th. The shares were bought at an average price of $12.25 per share, with a total value of $145,542.25. Following the completion of the acquisition, the insider 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 acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Zachary T. Sawtelle bought 25,000 shares of the company's stock in a transaction on Wednesday, August 12th. The stock was purchased at an average cost of $11.99 per share, for a total transaction of $299,750.00. Following the completion of the transaction, the insider directly owned 56,588 shares of the company's stock, valued at approximately $678,490.12. The trade was a 79.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have purchased 140,995 shares of company stock worth $1,715,498. 1.60% of the stock is owned by company insiders.

Institutional Trading of Compass Diversified

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Essential Partners LLC lifted its position in Compass Diversified by 9,263.2% during 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 last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Compass Diversified in the 2nd quarter worth $48,000. Empowered Funds LLC bought a new stake in shares of Compass Diversified in the 1st quarter worth about $222,000. State of Wyoming increased its holdings in shares of Compass Diversified by 85.1% in the 3rd quarter. State of Wyoming now owns 45,824 shares of the financial services provider's stock worth $500,000 after buying an additional 21,062 shares during the last quarter. Finally, Janney Montgomery Scott LLC increased its holdings in shares of Compass Diversified by 44.7% in the 1st quarter. Janney Montgomery Scott LLC now owns 76,593 shares of the financial services provider's stock worth $602,000 after buying an additional 23,676 shares during the last quarter. 72.73% of the stock is owned by hedge funds and other institutional investors.

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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