Compass Diversified Holdings (NYSE:CODI) Receives $11.50 Average PT from Brokerages

Compass Diversified Holdings (NYSE:CODI) has been assigned a consensus recommendation of “Hold” from the six brokerages that are covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, four have given a hold recommendation and one has assigned a buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $11.50.

A number of brokerages have issued reports on CODI. Wall Street Zen upgraded Compass Diversified from a “sell” rating to a “hold” rating in a research note on Saturday, March 7th. B. Riley Financial cut their target price on Compass Diversified from $13.00 to $8.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 3rd. CJS Securities raised Compass Diversified to an “outperform” rating in a research report on Tuesday, January 27th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Compass Diversified in a research report on Friday, December 26th. Finally, Compass Point set a $15.00 price target on shares of Compass Diversified in a research note on Tuesday, January 27th.

More Compass Diversified News

Here are the key news stories impacting Compass Diversified this week:

• Positive Sentiment: Large cash infusion and debt paydown — CODI agreed to sell Sterno’s foodservice business for about $292.5M to Archer/Wynnchurch; management says proceeds will be used to aggressively reduce debt, improving credit metrics, lowering interest expense and increasing financial flexibility. GlobeNewsWire deal release
• Positive Sentiment: Activist/strategic endorsement — ADW Capital filed a Schedule 13D disclosing a ~9.9% stake after the announcement, signaling activist interest and providing incremental credibility that the divestiture is viewed as value-accretive. That filing and the deal together have driven fresh buying interest. MarketBeat coverage
• Neutral Sentiment: CODI retains the Sterno home-fragrance business (to be rebranded Rimports), so the company is not exiting the brand entirely — this preserves some recurring revenue but reduces CODI’s exposure to the foodservice segment. MarketBeat summary
• Neutral Sentiment: Analyst commentary and coverage are being updated — outlets and analysts are reassessing CODI’s runway post-sale; consensus price targets may move over time as deleveraging is realized. Globe & Mail analysts piece
• Negative Sentiment: Revenue and earnings trade-off — selling a material business reduces CODI’s revenue base and near-term EBITDA contribution; investors should watch transaction timing, taxes/transaction costs, and whether proceeds are fully applied to debt vs. other uses. CODI’s prior negative EPS and historical leverage still bear monitoring until deleveraging is complete. Seeking Alpha deal coverage

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. SG Capital Management LLC bought a new stake in shares of Compass Diversified during the fourth quarter valued at approximately $7,626,000. CenterBook Partners LP purchased a new stake in Compass Diversified during the 4th quarter valued at $6,597,000. Mangrove Partners IM LLC increased its holdings in shares of Compass Diversified by 48.7% in the 3rd quarter. Mangrove Partners IM LLC now owns 3,684,800 shares of the financial services provider’s stock worth $24,393,000 after purchasing an additional 1,206,524 shares in the last quarter. Western Standard LLC bought a new stake in shares of Compass Diversified in the 4th quarter worth $5,592,000. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of Compass Diversified in the fourth quarter worth $4,099,000. Institutional investors own 72.73% of the company’s stock.

Compass Diversified Trading Up 3.0%

Shares of NYSE CODI opened at $7.90 on Friday. Compass Diversified has a 1 year low of $4.58 and a 1 year high of $18.84. The company has a debt-to-equity ratio of 19.20, a current ratio of 2.42 and a quick ratio of 1.26. The firm has a 50-day moving average of $6.66 and a 200 day moving average of $6.38. The stock has a market cap of $594.32 million, a P/E ratio of -2.04 and a beta of 1.04.

Compass Diversified (NYSE:CODI) last announced its earnings results on Wednesday, January 14th. The financial services provider reported ($0.98) earnings per share for the quarter, missing analysts’ consensus estimates of $0.61 by ($1.59). Compass Diversified had a negative net margin of 12.09% and a positive return on equity of 24.48%. As a group, sell-side analysts expect that Compass Diversified will post 1.96 EPS for the current fiscal year.

About Compass Diversified

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.