Compass Diversified (NYSE:CODI) Rating Lowered to Sell at Wall Street Zen

Compass Diversified (NYSE:CODI) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

A number of other analysts have also weighed in on the stock. UBS Group set a $18.00 price target on shares of Compass Diversified in a report on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass Diversified in a report on Friday, July 17th. B. Riley Financial upgraded Compass Diversified from a “neutral” rating to a “buy” rating and increased their price objective for the company from $11.00 to $15.00 in a research report on Tuesday, August 11th. Finally, TD Cowen lifted their target price on Compass Diversified from $12.50 to $18.00 and gave the company a “buy” rating in a research note on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $16.50.

Compass Diversified Stock Down 0.1%

Shares of NYSE CODI opened at $12.70 on Friday. Compass Diversified has a 12-month low of $4.58 and a 12-month high of $13.25. The firm’s 50-day simple moving average is $10.48 and its 200 day simple moving average is $9.45. The company has a quick ratio of 1.10, a current ratio of 2.26 and a debt-to-equity ratio of 11.90. The company has a market cap of $955.40 million, a price-to-earnings ratio of -5.85 and a beta of 1.27.

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

Insider Buying and Selling at Compass Diversified

In related news, insider Zachary T. Sawtelle purchased 7,000 shares of Compass Diversified stock in a transaction dated Thursday, August 13th. The shares were acquired at an average cost of $12.45 per share, for a total transaction of $87,150.00. Following the transaction, the insider directly owned 63,588 shares of the company’s stock, valued at approximately $791,670.60. This trade represents a 12.37% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Teri Shaffer purchased 11,881 shares of Compass Diversified stock in a transaction dated Wednesday, August 12th. The stock was bought at an average price of $12.25 per share, for a total transaction of $145,542.25. Following the completion of the transaction, the insider directly owned 13,201 shares in the company, valued at $161,712.25. The trade was a 900.08% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 120,995 shares of company stock worth $1,486,098 over the last quarter. 1.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Compass Diversified

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio grew its position in shares of Compass Diversified by 0.9% in the 1st quarter. Public Employees Retirement System of Ohio now owns 133,659 shares of the financial services provider’s stock valued at $1,051,000 after purchasing an additional 1,128 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Compass Diversified by 4.6% during the 1st 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 period. Sei Investments Co. lifted its stake in Compass Diversified by 1.8% in the third quarter. Sei Investments Co. now owns 115,570 shares of the financial services provider’s stock valued at $765,000 after buying an additional 2,022 shares in the last quarter. Brown Advisory Inc. lifted its position in Compass Diversified by 3.9% in the 2nd quarter. Brown Advisory Inc. now owns 80,734 shares of the financial services provider’s stock valued at $507,000 after acquiring an additional 3,000 shares in the last quarter. Finally, Prudential Financial Inc. lifted its holdings in shares of Compass Diversified by 13.0% in the second quarter. Prudential Financial Inc. now owns 30,325 shares of the financial services provider’s stock valued at $190,000 after purchasing an additional 3,490 shares in the last quarter. Institutional investors own 72.73% of the company’s stock.

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.

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.