Compass Diversified (NYSE:CODI) Shares Gap Up – Should You Buy?

Shares of Compass Diversified Holdings (NYSE:CODI) gapped up before the market opened on Monday . The stock had previously closed at $10.06, but opened at $10.70. Compass Diversified shares last traded at $10.3950, with a volume of 126,656 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have commented on CODI. B. Riley Financial increased their price target on shares of Compass Diversified from $8.00 to $10.50 and gave the company a “neutral” rating in a research note on Tuesday, April 7th. Weiss Ratings upgraded shares of Compass Diversified from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, April 21st. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Compass Diversified has an average rating of “Hold” and a consensus target price of $12.75.

Compass Diversified Price Performance

The company has a quick ratio of 1.56, a current ratio of 2.67 and a debt-to-equity ratio of 34.60. The firm has a market capitalization of $736.98 million, a price-to-earnings ratio of -2.51 and a beta of 1.26. The company has a fifty day moving average price of $10.88 and a two-hundred day moving average price of $8.56.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Essential Partners LLC raised its holdings in shares of Compass Diversified by 9,263.2% in the first quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider’s stock valued at $42,000 after buying an additional 5,280 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Compass Diversified by 68.6% during the second quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider’s stock worth $62,000 after buying an additional 4,000 shares during the last quarter. Focus Partners Wealth acquired a new position in Compass Diversified in the 3rd quarter valued at about $70,000. Quantessence Capital LLC acquired a new position in Compass Diversified in the 3rd quarter valued at about $70,000. Finally, Diversify Wealth Management LLC purchased a new stake in Compass Diversified during the 2nd quarter valued at approximately $81,000. 72.73% of the stock is owned by hedge funds and other institutional investors.

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.