Insider Buying: Compass Diversified (NYSE:CODI) Insider Acquires $833,555.88 in Stock

Compass Diversified Holdings (NYSE:CODI) insider Larry Enterline bought 67,114 shares of the firm’s stock in a transaction on Thursday, August 13th. The shares were bought at an average cost of $12.42 per share, for a total transaction of $833,555.88. Following the purchase, the insider owned 100,000 shares of the company’s stock, valued at approximately $1,242,000. The trade was a 204.08% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Compass Diversified Stock Down 0.1%

Shares of CODI opened at $12.70 on Monday. Compass Diversified Holdings has a 52 week low of $4.58 and a 52 week high of $13.25. The stock has a market capitalization of $955.40 million, a price-to-earnings ratio of -5.85 and a beta of 1.27. The company has a debt-to-equity ratio of 11.90, a quick ratio of 1.10 and a current ratio of 2.26. The stock has a fifty day moving average of $10.48 and a 200-day moving average of $9.45.

Compass Diversified (NYSE:CODI) last released 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 firm had revenue of $424.04 million for the quarter. As a group, sell-side analysts anticipate that Compass Diversified Holdings will post 0.22 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on CODI. Wall Street Zen downgraded Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. TD Cowen boosted their target price on shares of Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a report on Tuesday, August 11th. UBS Group set a $18.00 price target on shares of Compass Diversified in a research report on Tuesday, August 11th. Finally, B. Riley Financial raised shares of Compass Diversified from a “neutral” rating to a “buy” rating and raised their price target for the company from $11.00 to $15.00 in a research note on Tuesday, August 11th. Three equities 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 stock. Based on data from MarketBeat.com, Compass Diversified presently has an average rating of “Hold” and an average target price of $16.50.

Institutional Investors Weigh In On Compass Diversified

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Essential Partners LLC raised its position in shares of Compass Diversified by 9,263.2% during the first 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 last quarter. RPO LLC acquired a new stake in Compass Diversified during the 4th quarter valued at approximately $60,000. Geneos Wealth Management Inc. increased its position in Compass Diversified by 68.6% during the 2nd 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 period. Focus Partners Wealth bought a new position in Compass Diversified during the 3rd quarter worth approximately $70,000. Finally, Quantessence Capital LLC bought a new position in Compass Diversified during the 3rd quarter worth approximately $70,000. Institutional investors and hedge funds own 72.73% of the company’s stock.

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.