Zachary Sawtelle Purchases 25,000 Shares of Compass Diversified (NYSE:CODI) Stock

Compass Diversified Holdings (NYSE:CODI) insider Zachary Sawtelle acquired 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The stock was bought at an average cost of $11.99 per share, with a total value of $299,750.00. Following the purchase, the insider owned 56,588 shares in the company, valued at $678,490.12. The trade was a 79.14% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink.

Compass Diversified Stock Performance

Shares of Compass Diversified stock opened at $12.70 on Friday. The company’s 50 day moving average price is $10.48 and its two-hundred day moving average price is $9.43. The firm has a market capitalization of $955.35 million, a P/E ratio of -5.85 and a beta of 1.27. Compass Diversified Holdings has a fifty-two week low of $4.58 and a fifty-two week high of $13.25. The company has a debt-to-equity ratio of 11.90, a current ratio of 2.26 and a quick ratio of 1.56.

Compass Diversified (NYSE:CODI) last announced its quarterly 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 return on equity of 10.36% and a negative net margin of 5.38%.The company had revenue of $424.04 million for the quarter. On average, equities analysts forecast that Compass Diversified Holdings will post 0.22 earnings per share for the current fiscal year.

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.

Institutional Investors Weigh In On Compass Diversified

A number of hedge funds have recently added to or reduced their stakes in CODI. Essential Partners LLC lifted its stake in 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 period. RPO LLC acquired a new stake in shares of Compass Diversified during the 4th quarter worth approximately $60,000. Geneos Wealth Management Inc. grew its position in shares of 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 worth $62,000 after buying an additional 4,000 shares during the period. Focus Partners Wealth bought a new stake in shares of Compass Diversified in the 3rd quarter valued at $70,000. Finally, Quantessence Capital LLC bought a new stake in shares of Compass Diversified in the 3rd quarter valued at $70,000. 72.73% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CODI has been the subject of several research reports. B. Riley Financial upgraded Compass Diversified from a “neutral” rating to a “buy” rating and increased their target price for the company from $11.00 to $15.00 in a research report on Tuesday. Wall Street Zen downgraded Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday. UBS Group set a $18.00 price objective on shares of Compass Diversified in a report on Tuesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. Finally, TD Cowen upped their price target on shares of Compass Diversified from $12.50 to $18.00 and gave the company a “buy” rating in a research report on Tuesday. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Compass Diversified presently has a consensus rating of “Hold” and a consensus target price of $16.50.

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.