Compass Diversified (NYSE:CODI) Stock Breaks Above 50 Day Moving Average – Here’s Why

Compass Diversified Holdings (NYSE:CODI)’s stock price crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $11.05 and traded as high as $11.30. Compass Diversified shares last traded at $11.2830, with a volume of 943,199 shares trading hands.

Wall Street Analyst Weigh In

CODI has been the subject of several analyst reports. Wall Street Zen upgraded Compass Diversified from a “sell” rating to a “hold” rating in a research note on Saturday, August 29th. LADENBURG THALM/SH SH assumed coverage on Compass Diversified in a report on Tuesday, October 13th. They set a “buy” rating and a $17.00 target price for the company. UBS Group set a $18.00 price target on Compass Diversified in a research report on Tuesday, August 11th. Weiss Ratings reissued a “sell (d-)” rating on shares of Compass Diversified in a report on Thursday, October 15th. Finally, B. Riley Financial upgraded shares of Compass Diversified from a “neutral” rating to a “buy” rating and raised their price objective for the company from $11.00 to $15.00 in a research report on Tuesday, August 11th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $17.00.

Compass Diversified Stock Performance

The company has a 50-day moving average of $11.05 and a 200 day moving average of $9.72. 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 firm has a market capitalization of $838.93 million, a PE ratio of -5.14 and a beta of 1.30.

Compass Diversified (NYSE:CODI) last announced its earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. The business had revenue of $424.04 million during the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. Equities research analysts predict that Compass Diversified Holdings will post 0.08 EPS for the current year.

Insider Buying and Selling

In related news, insider Zachary Sawtelle bought 25,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were acquired at an average cost of $11.99 per share, with a total value of $299,750.00. Following the completion of the purchase, the insider directly owned 56,588 shares of the company’s stock, valued at $678,490.12. This trade represents a 79.14% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Eugene Kim bought 20,000 shares of the company’s stock in a transaction on Wednesday, August 26th. The shares were bought at an average price of $11.47 per share, with a total value of $229,400.00. Following the completion of the transaction, the insider owned 20,000 shares of the company’s stock, valued at $229,400. The trade was a ? increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased 140,995 shares of company stock valued at $1,715,498 in the last 90 days. 1.60% of the stock is owned by company insiders.

Institutional Trading of Compass Diversified

Several institutional investors and hedge funds have recently made changes to their positions in CODI. Bank of America Corp DE lifted its stake in Compass Diversified by 77.4% during the first quarter. Bank of America Corp DE now owns 1,306,527 shares of the financial services provider’s stock worth $10,269,000 after purchasing an additional 570,003 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new position in shares of Compass Diversified in the 2nd quarter worth about $1,424,000. Sei Investments Co. boosted its holdings in shares of Compass Diversified by 69.6% in the 1st quarter. Sei Investments Co. now owns 286,033 shares of the financial services provider’s stock worth $2,248,000 after purchasing an additional 117,423 shares in the last quarter. Renaissance Technologies LLC bought a new position in shares of Compass Diversified during the 1st quarter valued at about $736,000. Finally, Engineers Gate Manager LP increased its position in shares of Compass Diversified by 135.5% during the 2nd quarter. Engineers Gate Manager LP now owns 129,216 shares of the financial services provider’s stock valued at $1,377,000 after purchasing an additional 74,344 shares during the last quarter. Hedge funds and other institutional investors own 72.73% of the company’s stock.

Compass Diversified Company Profile

Compass Diversified is a holding company that acquires and manages controlling interests in middle-market businesses. Rather than operating as a single-product company, it owns a diversified portfolio of subsidiaries across consumer and industrial markets and provides them with capital, strategic guidance and operational support.

The company’s portfolio has included businesses that develop and sell outdoor and recreational equipment, apparel and accessories, home and wellness products, food and beverage items, and specialty industrial products.