Insider Buying: Compass Diversified (NYSE:CODI) Insider Buys $299,750.00 in Stock

Compass Diversified Holdings (NYSE:CODI) insider Zachary Sawtelle bought 25,000 shares of the firm’s stock in a transaction on Wednesday, August 12th. The shares were bought at an average cost of $11.99 per share, with a total value of $299,750.00. Following the purchase, the insider directly owned 56,588 shares in the company, valued at approximately $678,490.12. This trade represents a 79.14% 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.

Compass Diversified Trading Up 3.4%

Compass Diversified stock opened at $12.70 on Friday. 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 stock has a market cap of $955.40 million, a P/E ratio of -5.85 and a beta of 1.27. The company’s fifty day simple moving average is $10.48 and its 200-day simple moving average is $9.43.

Compass Diversified (NYSE:CODI) last announced its quarterly earnings data on Monday, August 10th. The financial services provider reported ($0.09) earnings per share (EPS) 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%. As a group, sell-side analysts forecast that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

Trending Headlines about 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.

Hedge Funds Weigh In On Compass Diversified

Hedge funds have recently bought and sold shares of the business. Jacobs Levy Equity Management Inc. raised its holdings in Compass Diversified by 75.2% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,966,408 shares of the financial services provider’s stock valued at $9,439,000 after buying an additional 843,965 shares in the last quarter. SG Capital Management LLC bought a new stake in shares of Compass Diversified during the 4th quarter worth about $7,626,000. CenterBook Partners LP bought a new stake in shares of Compass Diversified during the 4th quarter worth about $6,597,000. Bank of America Corp DE increased its holdings in shares of Compass Diversified by 77.4% during 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 acquiring an additional 570,003 shares during the last quarter. Finally, State Street Corp increased its holdings in shares of Compass Diversified by 2.3% during the 4th quarter. State Street Corp now owns 1,238,792 shares of the financial services provider’s stock valued at $5,946,000 after acquiring an additional 27,774 shares during the last quarter. 72.73% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on CODI shares. TD Cowen raised their price target on Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a research note on Tuesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Compass Diversified in a research note on Friday, July 17th. Wall Street Zen cut Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday. B. Riley Financial upgraded Compass Diversified from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $11.00 to $15.00 in a report on Tuesday, August 11th. Finally, UBS Group set a $18.00 price objective on shares of Compass Diversified in a research report on Tuesday. 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.com, the company has an average rating of “Hold” and an average target price of $16.50.

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.