Compass (NYSE:COMP) Cut to Hold at Wall Street Zen

Wall Street Zen cut shares of Compass (NYSE:COMP) from a buy rating to a hold rating in a report issued on Wednesday.

Several other equities analysts have also recently weighed in on the company. Odeon Capital Group assumed coverage on Compass in a research note on Wednesday, November 19th. They set a “buy” rating on the stock. Barclays upgraded shares of Compass from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $9.00 to $13.00 in a report on Monday, December 8th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 price objective on shares of Compass in a research report on Tuesday, November 4th. Wells Fargo & Company increased their target price on shares of Compass from $7.00 to $8.00 and gave the stock an “equal weight” rating in a research report on Wednesday, November 5th. Finally, BTIG Research lifted their target price on shares of Compass from $11.00 to $12.50 and gave the company a “buy” rating in a research note on Tuesday, November 25th. Seven analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Compass presently has an average rating of “Moderate Buy” and an average target price of $11.33.

Compass Stock Performance

NYSE COMP opened at $12.87 on Wednesday. Compass has a twelve month low of $5.10 and a twelve month high of $13.53. The stock has a market cap of $7.22 billion, a price-to-earnings ratio of -117.04 and a beta of 2.53. The firm’s 50 day moving average price is $10.23 and its two-hundred day moving average price is $8.68.

Compass (NYSE:COMP) last released its earnings results on Tuesday, November 4th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.01. Compass had a negative return on equity of 8.83% and a negative net margin of 0.85%.The company had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.79 billion. On average, research analysts forecast that Compass will post 0.09 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, General Counsel Bradley K. Serwin sold 20,953 shares of the company’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $11.00, for a total transaction of $230,483.00. Following the completion of the sale, the general counsel owned 258,712 shares in the company, valued at approximately $2,845,832. This represents a 7.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Scott R. Wahlers sold 99,986 shares of the stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $12.03, for a total value of $1,202,831.58. Following the transaction, the chief financial officer directly owned 250,073 shares in the company, valued at approximately $3,008,378.19. This represents a 28.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 234,167 shares of company stock worth $2,651,216 in the last 90 days. 4.08% of the stock is owned by insiders.

Key Compass News

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Completed merger — Compass closed its landmark all‑stock combination with Anywhere Real Estate, forming Compass International Holdings and positioning the company as the world’s largest broker; market participants are treating the closing as a major growth and cost‑synergy catalyst. Compass Completes Landmark Anywhere Merger, Stock Soars
• Positive Sentiment: DOJ clearance — The Justice Department allowed the deal to close after overruling some staff concerns, removing a key regulatory hurdle that had been delaying the transaction and reducing execution risk. DOJ allows Compass-Anywhere deal after overruling staff
• Neutral Sentiment: Financing and liquidity — Compass priced an upsized private offering of $850M in convertible senior notes due 2031 to fund growth and integration; this boosts cash but carries potential long‑term dilution if conversion occurs. Compass, Inc. Announces Upsize and Pricing of $850,000,000 Convertible Senior Notes
• Negative Sentiment: Insider selling — CFO Scott Wahlers sold 99,986 shares (filed Jan. 7), cutting his stake by ~28.6%; insider sales can signal cashing‑out concerns or simply personal liquidity needs, and they sometimes pressure sentiment. SEC Form 4 — CFO Sale
• Negative Sentiment: Regulatory optics and governance questions — Reporting highlights that Compass engaged outside counsel tied to political controversy and that some DOJ staff wanted a deeper probe; this raises reputational and oversight questions that could attract further scrutiny. Real‑Estate Brokerages Avoided Merger Investigation After Justice Department Rift
• Negative Sentiment: Momentum vs fundamentals — Analysts warn the recent rally is volume‑driven and that estimate revisions haven’t yet confirmed durable earnings upside, so the stock may need operational proof of merger synergies to sustain gains. Compass (COMP) Surges 9.3%: Is This an Indication Of Further Gains?

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.