Compass Diversified (NYSE:CODI) Reaches New 52-Week High Following Analyst Upgrade

Compass Diversified Holdings (NYSE:CODI) reached a new 52-week high on Tuesday after B. Riley Financial upgraded the stock from a neutral rating to a buy rating. B. Riley Financial now has a $15.00 price target on the stock, up from their previous price target of $11.00. Compass Diversified traded as high as $13.24 and last traded at $12.3370, with a volume of 365389 shares changing hands. The stock had previously closed at $11.08.

Other equities analysts also recently issued reports about the company. TD Cowen reiterated a “buy” rating and issued a $12.50 target price on shares of Compass Diversified in a research report on Thursday, July 16th. Weiss Ratings restated a “sell (d-)” rating on shares of Compass Diversified in a report on Friday, July 17th. Three equities research 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 company presently has a consensus rating of “Hold” and an average price target of $15.12.

Trending Headlines about Compass Diversified

Here are the key news stories impacting Compass Diversified this week:

• Positive Sentiment: B. Riley upgraded CODI from “neutral” to “buy” and set a $15 price target, implying considerable upside from the reference price. The upgrade provides a positive valuation signal following the company’s quarterly report. Finviz analyst upgrade reference
• Positive Sentiment: CODI reported second-quarter EPS of $0.86, well above the $0.09 analyst consensus, while operating cash flow improved to $29.7 million from a cash outflow in the prior-year quarter. Continuing-operations net income was $81.9 million, compared with an $80.8 million loss a year earlier. Compass Diversified second-quarter financial results
• Positive Sentiment: Underlying subsidiary performance was strong: continuing-business adjusted EBITDA rose 12.6% to $91.5 million, led by more than 25% growth at BOA, PrimaLoft and The Honey Pot, and nearly 50% growth at Arnold. CODI maintained its 2026 adjusted EBITDA outlook of $320 million to $365 million. BOA and PrimaLoft second-quarter performance
• Positive Sentiment: The sale of Sterno’s Food Service Business generated more than $280 million of proceeds, which CODI used to reduce debt. Total debt fell to $1.59 billion from $1.89 billion at year-end, while the company also amended its credit facility to extend term-loan and revolving commitments to January 2028. Compass Diversified credit facility amendment
• Neutral Sentiment: CEO Elias Sabo plans to retire at the end of 2026, with COO Zach Sawtelle named as successor. CODI also amended its management agreement to reduce expected fees and better link compensation to shareholder returns.
• Negative Sentiment: Reported revenue declined 11.4% year over year to $424 million, and adjusted earnings remained negative at $6.9 million. The strong GAAP profit relied heavily on a $182.3 million gain from the Sterno sale, while leverage remained elevated at approximately 4.8 times.

Institutional Trading of Compass Diversified

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC acquired a new position in shares of Compass Diversified in the 1st quarter worth approximately $294,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Compass Diversified by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,635 shares of the financial services provider’s stock worth $740,000 after buying an additional 1,728 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Compass Diversified by 6.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 154,458 shares of the financial services provider’s stock valued at $2,884,000 after buying an additional 10,006 shares during the period. Jane Street Group LLC lifted its holdings in Compass Diversified by 345.5% in the first quarter. Jane Street Group LLC now owns 193,907 shares of the financial services provider’s stock valued at $3,620,000 after buying an additional 150,386 shares during the period. Finally, Geode Capital Management LLC boosted its position in Compass Diversified by 5.5% during the second quarter. Geode Capital Management LLC now owns 862,549 shares of the financial services provider’s stock valued at $5,416,000 after acquiring an additional 44,938 shares during the last quarter. Institutional investors and hedge funds own 72.73% of the company’s stock.

Compass Diversified Stock Up 12.5%

The company has a quick ratio of 1.56, a current ratio of 2.67 and a debt-to-equity ratio of 34.60. The stock’s 50-day simple moving average is $10.35 and its 200 day simple moving average is $9.27. The firm has a market cap of $938.17 million, a P/E ratio of -3.17 and a beta of 1.27.

About Compass Diversified

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.