Compass (NYSE:COMP) Rating Lowered to Hold at Zacks Research

Compass (NYSE:COMP) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday,Zacks.com reports.

COMP has been the subject of several other research reports. BTIG Research reiterated a “buy” rating on shares of Compass in a research note on Wednesday, July 15th. UBS Group boosted their price objective on shares of Compass from $12.00 to $17.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Zelman & Associates reiterated a “neutral” rating and set a $13.50 price objective on shares of Compass in a research note on Thursday. Barclays raised their target price on shares of Compass from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Oppenheimer lifted their target price on Compass from $15.00 to $18.00 and gave the company an “outperform” rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $14.15.

Compass Stock Down 0.0%

NYSE:COMP opened at $12.58 on Thursday. The company has a market capitalization of $9.40 billion, a price-to-earnings ratio of 209.65 and a beta of 2.36. The stock has a 50-day simple moving average of $10.80 and a 200 day simple moving average of $9.75. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.84 and a current ratio of 0.84. Compass has a one year low of $6.37 and a one year high of $13.95.

Compass (NYSE:COMP) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.08 by $0.03. The business had revenue of $4.31 billion during the quarter, compared to the consensus estimate of $4.11 billion. Compass had a return on equity of 4.56% and a net margin of 0.63%. Sell-side analysts predict that Compass will post 0.22 EPS for the current fiscal year.

Insider Transactions at Compass

In other Compass news, CEO Robert L. Reffkin sold 23,456 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $11.70, for a total value of $274,435.20. Following the sale, the chief executive officer directly owned 7,757,748 shares in the company, valued at approximately $90,765,651.60. This trade represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 70,368 shares of company stock valued at $748,246 in the last quarter. Company insiders own 2.85% of the company’s stock.

Key Stories Impacting Compass

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Analysts see additional upside: Wells Fargo raised its price target to $13 from $12 while maintaining an equal-weight rating. Goldman Sachs also increased its target to $12 from $10.50. Zelman & Associates reaffirmed a neutral rating but set a $13.50 target, implying potential upside from recent levels. Wells Fargo Compass analyst update
• Positive Sentiment: Better-than-expected earnings support the stock: Compass reported quarterly revenue of $4.31 billion versus the $4.11 billion consensus estimate and adjusted earnings of $0.11 per share versus expectations of $0.08. Record net income, strong cash flow and faster-than-planned cost synergies reinforce the company’s profitability improvement story. Compass second-quarter results
• Neutral Sentiment: Analyst sentiment remains mixed: Zelman’s neutral rating contrasts with buy and outperform ratings from several other firms. The average analyst target is approximately $14.21, but the high valuation and limited profitability leave investors sensitive to execution and housing-market conditions. Zelman neutral rating
• Neutral Sentiment: CEO insider sale was limited: CEO Robert Reffkin sold 23,456 shares for about $274,000 under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by only 0.30%, making it a relatively weak bearish signal. Compass SEC insider filing
• Negative Sentiment: Private-listings controversy is the key overhang: Sen. Elizabeth Warren questioned Compass’s partnership with Chicago’s MRED private-listing network, arguing that the arrangement could increase risks of civil-rights violations and discriminatory access to housing. The criticism adds regulatory, reputational and potential legal risk while a congressional inquiry remains active. Compass defended the strategy as beneficial to consumers and agents, but the controversy may limit near-term upside. Senator Warren questions Compass private listings deal

About Compass

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.