Larry Enterline Acquires 67,114 Shares of Compass Diversified (NYSE:CODI) Stock

Compass Diversified Holdings (NYSE:CODI) insider Larry Enterline bought 67,114 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $12.42 per share, with a total value of $833,555.88. Following the transaction, the insider directly owned 100,000 shares in the company, valued at $1,242,000. This represents a 204.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Compass Diversified Price Performance

NYSE:CODI opened at $12.70 on Friday. The firm has a market cap of $955.40 million, a PE ratio of -5.85 and a beta of 1.27. Compass Diversified Holdings has a 12 month low of $4.58 and a 12 month high of $13.25. The company has a quick ratio of 1.56, a current ratio of 2.26 and a debt-to-equity ratio of 11.90. The company’s 50-day moving average price is $10.48 and its two-hundred day moving average price is $9.43.

Compass Diversified (NYSE:CODI) last issued its quarterly earnings data on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. The firm had revenue of $424.04 million for the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. On average, equities analysts anticipate that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

Analyst Ratings Changes

CODI has been the subject of a number of recent analyst reports. TD Cowen raised their price target on Compass Diversified from $12.50 to $18.00 and gave the company a “buy” rating in a report on Tuesday. Wall Street Zen lowered Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday. UBS Group set a $18.00 target price on Compass Diversified in a report on Tuesday. Weiss Ratings restated a “sell (d-)” rating on shares of Compass Diversified in a research note on Friday, July 17th. Finally, B. Riley Financial raised Compass Diversified from a “neutral” rating to a “buy” rating and lifted their price target for the company from $11.00 to $15.00 in a report on Tuesday, August 11th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $16.50.

Institutional Trading of Compass Diversified

Hedge funds have recently modified their holdings of the stock. Empowered Funds LLC bought a new position in Compass Diversified in the 1st quarter worth approximately $222,000. Essential Partners LLC lifted its holdings in Compass Diversified by 9,263.2% during the 1st quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider’s stock worth $42,000 after buying an additional 5,280 shares in the last quarter. Bank of America Corp DE boosted its position in Compass Diversified by 77.4% in the 1st quarter. Bank of America Corp DE now owns 1,306,527 shares of the financial services provider’s stock valued at $10,269,000 after buying an additional 570,003 shares during the last quarter. Saba Capital Management L.P. boosted its position in Compass Diversified by 4.9% in the 1st quarter. Saba Capital Management L.P. now owns 429,259 shares of the financial services provider’s stock valued at $3,374,000 after buying an additional 20,000 shares during the last quarter. Finally, Renaissance Technologies LLC bought a new position in Compass Diversified in the 1st quarter valued at $736,000. 72.73% of the stock is owned by institutional investors.

Key Stories Impacting Compass Diversified

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.

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.