Compass Diversified (NYSE:CODI) Shares Gap Down – Should You Sell?

Compass Diversified Holdings (NYSE:CODI) gapped down before the market opened on Thursday . The stock had previously closed at $10.92, but opened at $10.34. Compass Diversified shares last traded at $9.8330, with a volume of 207,324 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. B. Riley Financial raised their price target on Compass Diversified from $8.00 to $10.50 and gave the stock a “neutral” rating in a research report on Tuesday, April 7th. Weiss Ratings raised Compass Diversified from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, April 21st. Wall Street Zen raised Compass Diversified from a “sell” rating to a “hold” rating in a research report on Saturday, March 7th. Raymond James Financial initiated coverage on Compass Diversified in a report on Wednesday, March 11th. They set a “hold” rating for the company. Finally, Zacks Research upgraded Compass Diversified from a “strong sell” rating to a “hold” rating in a report on Monday, March 16th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $12.75.

Compass Diversified Stock Performance

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 firm has a market capitalization of $765.53 million, a P/E ratio of -2.60 and a beta of 1.26. The stock has a fifty day moving average of $10.97 and a 200-day moving average of $7.83.

Insider Activity

In other news, insider Stephen Keller acquired 30,000 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The stock was acquired at an average cost of $8.61 per share, for a total transaction of $258,300.00. Following the completion of the acquisition, the insider owned 20,000 shares in the company, valued at $172,200. This represents a -300.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of CODI. Allspring Global Investments Holdings LLC increased its position in shares of Compass Diversified by 1.2% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 4,346,106 shares of the financial services provider’s stock worth $20,209,000 after purchasing an additional 49,423 shares during the last quarter. Mangrove Partners IM LLC increased its position in shares of Compass Diversified by 48.7% during the 3rd quarter. Mangrove Partners IM LLC now owns 3,684,800 shares of the financial services provider’s stock worth $24,393,000 after purchasing an additional 1,206,524 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its position in shares of Compass Diversified by 75.2% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,966,408 shares of the financial services provider’s stock worth $9,439,000 after purchasing an additional 843,965 shares during the last quarter. SG Capital Management LLC acquired a new position in shares of Compass Diversified during the 4th quarter worth approximately $7,626,000. Finally, CenterBook Partners LP acquired a new position in shares of Compass Diversified during the 4th quarter worth approximately $6,597,000. 72.73% of the stock is currently owned by institutional investors.

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.