Insider Buying: Compass Diversified (NYSE:CODI) Insider Buys $120,100.00 in Stock

Compass Diversified Holdings (NYSE:CODI) insider Stephen Keller purchased 10,000 shares of the firm’s stock in a transaction on Wednesday, August 12th. The stock was bought at an average price of $12.01 per share, with a total value of $120,100.00. Following the acquisition, the insider owned 51,840 shares in the company, valued at $622,598.40. This trade represents a 23.90% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Compass Diversified Stock Performance

Compass Diversified stock opened at $12.70 on Friday. Compass Diversified Holdings has a 12-month low of $4.58 and a 12-month high of $13.25. The company 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 current ratio of 2.26 and a quick ratio of 1.56. The firm’s fifty day moving average price is $10.48 and its 200 day moving average price is $9.43.

Compass Diversified (NYSE:CODI) last announced its earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share (EPS) for the quarter. Compass Diversified had a negative net margin of 5.38% and a negative return on equity of 10.36%. The business had revenue of $424.04 million during the quarter. On average, research analysts forecast that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

Trending Headlines about 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.

Analysts Set New Price Targets

CODI has been the topic of a number of recent research reports. UBS Group set a $18.00 target price on Compass Diversified in a research note on Tuesday. Weiss Ratings restated a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. TD Cowen increased their price objective on shares of Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a report on Tuesday. Wall Street Zen downgraded shares of Compass Diversified from a “hold” rating to a “sell” rating in a research report on Saturday. Finally, B. Riley Financial upgraded 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 report on Tuesday, August 11th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $16.50.

Institutional Trading of Compass Diversified

A number of hedge funds and other institutional investors have recently made changes to their positions in CODI. Empowered Funds LLC acquired a new position in shares of Compass Diversified during the first quarter valued at approximately $222,000. Essential Partners LLC raised its holdings in 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 purchasing an additional 5,280 shares in the last quarter. Bank of America Corp DE lifted its position in Compass Diversified by 77.4% in 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 period. Saba Capital Management L.P. lifted its position in Compass Diversified by 4.9% in the first quarter. Saba Capital Management L.P. now owns 429,259 shares of the financial services provider’s stock worth $3,374,000 after purchasing an additional 20,000 shares during the period. Finally, Renaissance Technologies LLC bought a new position in Compass Diversified during the 1st quarter valued at $736,000. 72.73% of the stock is currently owned by 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.