Investors Purchase Large Volume of Call Options on Compass Diversified (NYSE:CODI)

Compass Diversified Holdings (NYSE:CODI) was the target of some unusual options trading on Tuesday. Investors purchased 9,180 call options on the company. This represents an increase of 314% compared to the average volume of 2,216 call options.

Institutional Trading of Compass Diversified

Institutional investors and hedge funds have recently bought and sold shares of the company. Western Standard LLC bought a new position in shares of Compass Diversified in the 4th quarter worth $5,592,000. Sei Investments Co. lifted its holdings in shares of Compass Diversified by 69.6% during the 1st quarter. Sei Investments Co. now owns 286,033 shares of the financial services provider’s stock worth $2,248,000 after acquiring an additional 117,423 shares during the last quarter. Oak Family Advisors LLC purchased a new position in Compass Diversified in the first quarter worth $1,372,000. North Star Investment Management Corp. grew its position in Compass Diversified by 20,678.0% in the first quarter. North Star Investment Management Corp. now owns 61,295 shares of the financial services provider’s stock worth $482,000 after acquiring an additional 61,000 shares in the last quarter. Finally, CenterBook Partners LP bought a new position in Compass Diversified in the fourth quarter valued at $6,597,000. 72.73% of the stock is currently owned by hedge funds and other institutional investors.

Compass Diversified Price Performance

Shares of Compass Diversified stock traded up $1.15 on Tuesday, reaching $12.23. The stock had a trading volume of 1,148,029 shares, compared to its average volume of 1,098,380. Compass Diversified has a 1 year low of $4.58 and a 1 year high of $13.24. The company has a market cap of $920.19 million, a P/E ratio of -3.13 and a beta of 1.27. The company has a current ratio of 2.67, a quick ratio of 1.56 and a debt-to-equity ratio of 34.60. The business’s 50 day moving average is $10.35 and its two-hundred day moving average is $9.27.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on CODI shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. B. Riley Financial raised shares of Compass Diversified from a “neutral” rating to a “buy” rating and boosted their price target for the company from $11.00 to $15.00 in a research report on Tuesday. TD Cowen restated a “buy” rating on shares of Compass Diversified in a research note on Tuesday. Finally, UBS Group set a $18.00 price target on shares of Compass Diversified in a research note on Tuesday. Three 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. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $15.12.

Trending Headlines about Compass Diversified

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

• Positive Sentiment: B. Riley upgraded CODI to “buy” and raised its price target to $15 from $11, implying additional upside and providing a near-term catalyst for the stock. Benzinga coverage
• Positive Sentiment: Second-quarter adjusted EBITDA from continuing subsidiaries, excluding Lugano and the divested Sterno food-service business, rose 12.6% to $91.5 million. Branded Consumer adjusted EBITDA increased 24.2%, with BOA, PrimaLoft and The Honey Pot each reporting growth of more than 25%; Arnold’s EBITDA rose nearly 50%. Second-quarter 2026 financial results
• Positive Sentiment: CODI sold Sterno’s Food Service Business for more than $280 million and used the proceeds to reduce debt. Total debt fell to approximately $1.59 billion from $1.89 billion at year-end, while the leverage ratio improved to about 4.8x from 5.3x in the prior quarter. Q2 results and debt reduction
• Positive Sentiment: CODI extended its term-loan and revolving-commitment maturities to January 2028, improving near-term liquidity flexibility. Management also amended its fee agreement to lower expected fees and better align compensation with shareholder returns. Credit facility amendment
• Neutral Sentiment: Reported second-quarter EPS of $0.86 substantially exceeded the $0.09 consensus estimate, but results included a $182.3 million gain on the Sterno sale. Adjusted earnings remained negative at $6.9 million, making the headline earnings improvement less representative of recurring profitability. Q2 2026 earnings call transcript
• Negative Sentiment: GAAP revenue declined 11.4% year over year to $424.0 million, while Industrial segment revenue and EBITDA weakened. CODI also continues to carry elevated leverage, and the Sterno gain will not recur.

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.