Compass Diversified (NYSE:CODI) Insider Buys 67,114 Shares of Stock

Compass Diversified Holdings (NYSE:CODI) insider Larry Enterline purchased 67,114 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average price of $12.42 per share, for a total transaction of $833,555.88. Following the transaction, the insider directly owned 100,000 shares in the company, valued at $1,242,000. This trade represents a 204.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Compass Diversified Stock Performance

Compass Diversified stock traded up $0.42 during mid-day trading on Friday, reaching $12.70. 1,062,849 shares of the company were exchanged, compared to its average volume of 1,105,218. Compass Diversified Holdings has a twelve month low of $4.58 and a twelve month high of $13.25. The firm’s 50-day simple moving average is $10.44 and its two-hundred day simple moving average is $9.41. The company has a debt-to-equity ratio of 34.60, a quick ratio of 1.56 and a current ratio of 2.67. The firm has a market cap of $955.40 million, a PE ratio of -5.85 and a beta of 1.27.

Compass Diversified (NYSE:CODI) last released its earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share (EPS) for the quarter. Compass Diversified had a negative net margin of 5.38% and a negative return on equity of 9.53%. The company had revenue of $424.04 million during the quarter. Equities analysts predict that Compass Diversified Holdings will post 0.22 earnings per share for the current fiscal year.

Compass Diversified News Roundup

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

• Positive Sentiment: Analyst upgrades and higher targets: B. Riley Financial upgraded CODI from “Neutral” to “Buy” and raised its price target from $11 to $15. TD Cowen increased its target from $12.50 to $18 and maintained a “Buy” rating, while UBS also set an $18 target. The higher targets are above recent trading levels and likely improved investor sentiment. B. Riley Financial upgrades Compass Diversified
• Positive Sentiment: Multiple insider purchases: Zachary T. Sawtelle bought 25,000 shares for approximately $299,750 on August 12 and another 7,000 shares for $87,150 on August 13. Stephen Keller purchased 10,000 shares for about $120,100. The transactions materially increased their ownership and may signal that insiders believe CODI is undervalued or expect a business recovery. SEC insider ownership filing
• Positive Sentiment: Turnaround and transaction optimism: Reports have highlighted a $292 million sale and potential management-fee savings, reinforcing the possibility of improved liquidity, lower expenses and stronger portfolio performance. Compass Diversified’s $292 million sale
• Neutral Sentiment: Unusual options activity: Elevated options volume shows increased attention around CODI and could amplify near-term volatility, but it does not establish a clear bullish or bearish direction. Unusual options trading in Compass Diversified
• Negative Sentiment: Losses remain a risk: CODI reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity. Its recovery case therefore depends on successfully improving portfolio-company performance and converting recent strategic developments into sustained earnings.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on CODI shares. UBS Group set a $18.00 target price on Compass Diversified in a research note on Tuesday. Weiss Ratings restated a “sell (d-)” rating on shares of Compass Diversified in a research note on Friday, July 17th. B. Riley Financial raised Compass Diversified from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $11.00 to $15.00 in a report on Tuesday. Finally, TD Cowen increased their price objective on Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a research report on Tuesday. Three investment 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 presently has an average rating of “Hold” and a consensus target price of $16.50.

Institutional Investors Weigh In On Compass Diversified

A number of institutional investors and hedge funds have recently modified their holdings of the company. Western Standard LLC acquired a new stake in shares of Compass Diversified in the fourth quarter valued at approximately $5,592,000. Sei Investments Co. lifted its stake 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 buying an additional 117,423 shares in the last quarter. Oak Family Advisors LLC purchased a new stake in Compass Diversified in the 1st quarter valued at approximately $1,372,000. North Star Investment Management Corp. grew its holdings in Compass Diversified by 20,678.0% during the 1st quarter. North Star Investment Management Corp. now owns 61,295 shares of the financial services provider’s stock valued at $482,000 after buying an additional 61,000 shares during the last quarter. Finally, CenterBook Partners LP acquired a new stake in Compass Diversified during the 4th quarter valued at $6,597,000. Institutional investors and hedge funds own 72.73% of the company’s stock.

Compass Diversified Company Profile

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.