Zachary Sawtelle Acquires 7,000 Shares of Compass Diversified (NYSE:CODI) Stock

Compass Diversified Holdings (NYSE:CODI) insider Zachary Sawtelle acquired 7,000 shares of Compass Diversified stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average cost of $12.45 per share, with a total value of $87,150.00. Following the transaction, the insider owned 63,588 shares of the company’s stock, valued at approximately $791,670.60. The trade was a 12.37% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Compass Diversified Stock Performance

Shares of NYSE CODI opened at $12.70 on Friday. The company has a debt-to-equity ratio of 11.90, a current ratio of 2.26 and a quick ratio of 1.56. Compass Diversified Holdings has a one year low of $4.58 and a one year high of $13.25. The business’s 50-day moving average price is $10.48 and its two-hundred day moving average price is $9.43. The company has a market capitalization of $955.35 million, a P/E ratio of -5.85 and a beta of 1.27.

Compass Diversified (NYSE:CODI) last posted its quarterly earnings results 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%. Analysts anticipate that Compass Diversified Holdings will post 0.22 earnings per share for the current fiscal year.

More Compass Diversified News

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.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CODI. Essential Partners LLC raised its holdings in Compass Diversified by 9,263.2% in the 1st quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider’s stock worth $42,000 after acquiring an additional 5,280 shares during the period. RPO LLC bought a new stake in Compass Diversified during the fourth quarter valued at about $60,000. Geneos Wealth Management Inc. grew its position in shares of Compass Diversified by 68.6% in the second quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider’s stock valued at $62,000 after purchasing an additional 4,000 shares during the last quarter. Focus Partners Wealth acquired a new stake in shares of Compass Diversified in the third quarter valued at about $70,000. Finally, Quantessence Capital LLC bought a new position in shares of Compass Diversified in the third quarter worth about $70,000. 72.73% of the stock is currently owned by institutional investors and hedge funds.

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.