Compass Diversified (NYSE:CODI) Upgraded at B. Riley Financial

B. Riley Financial upgraded shares of Compass Diversified (NYSE:CODI) from a neutral rating to a buy rating in a research report released on Tuesday, Marketbeat Ratings reports. B. Riley Financial currently has $15.00 price objective on the financial services provider’s stock, up from their prior price objective of $11.00.

A number of other research analysts also recently weighed in on the stock. TD Cowen reaffirmed a “buy” rating and issued a $12.50 target price on shares of Compass Diversified in a research report on Thursday, July 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $16.50.

Compass Diversified Trading Up 1.7%

NYSE CODI opened at $12.28 on Tuesday. Compass Diversified has a 52 week low of $4.58 and a 52 week high of $13.24. The company has a debt-to-equity ratio of 34.60, a quick ratio of 1.56 and a current ratio of 2.67. The stock’s 50 day moving average price is $10.44 and its two-hundred day moving average price is $9.41. The stock has a market capitalization of $923.57 million, a price-to-earnings ratio of -5.66 and a beta of 1.27.

Compass Diversified (NYSE:CODI) last issued its quarterly earnings results on Monday, August 10th. The financial services provider reported ($0.09) earnings per share for the quarter. Compass Diversified had a negative return on equity of 9.53% and a negative net margin of 5.38%.The business had revenue of $424.04 million for the quarter. As a group, analysts anticipate that Compass Diversified will post 0.22 earnings per share for the current fiscal year.

Insider Activity at Compass Diversified

In other news, insider Stephen Keller bought 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The stock was acquired at an average cost of $12.01 per share, with a total value of $120,100.00. Following the completion of the purchase, the insider owned 51,840 shares of the company’s stock, valued at $622,598.40. This represents a 23.90% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Zachary T. Sawtelle bought 25,000 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased at an average price of $11.99 per share, for a total transaction of $299,750.00. Following the completion of the acquisition, the insider owned 56,588 shares of the company’s stock, valued at $678,490.12. The trade was a 79.14% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 42,000 shares of company stock worth $507,000 in the last ninety days. Insiders own 1.60% of the company’s stock.

Institutional Trading of Compass Diversified

A number of large investors have recently added to or reduced their stakes in CODI. Empowered Funds LLC bought a new position in shares of Compass Diversified in the 1st quarter valued at about $222,000. Essential Partners LLC raised its holdings in shares of Compass Diversified by 9,263.2% in the 1st quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 5,280 shares during the period. Bank of America Corp DE lifted its stake in Compass Diversified by 77.4% in the 1st quarter. Bank of America Corp DE now owns 1,306,527 shares of the financial services provider’s stock valued at $10,269,000 after purchasing an additional 570,003 shares during the last quarter. Saba Capital Management L.P. lifted its stake in Compass Diversified by 4.9% in the 1st quarter. Saba Capital Management L.P. now owns 429,259 shares of the financial services provider’s stock valued at $3,374,000 after purchasing an additional 20,000 shares during the last quarter. Finally, Renaissance Technologies LLC bought a new position in Compass Diversified during the first quarter worth about $736,000. Institutional investors and hedge funds own 72.73% of the company’s stock.

Compass Diversified News Summary

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

• Positive Sentiment: Analyst upgrade: B. Riley Financial upgraded Compass Diversified to “Buy,” providing a fresh bullish catalyst and contributing to the stock reaching a new 12-month high. B. Riley Financial Upgrades Compass Diversified to Buy
• Positive Sentiment: Cluster of 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 also purchased 10,000 shares for about $120,100. The purchases increased their respective holdings by roughly 79%, 12%, and 24%, suggesting management insiders view the stock as attractively valued or have confidence in the company’s prospects. SEC insider ownership filing
• Positive Sentiment: Cost-reduction opportunity: A renegotiated management-fee agreement is expected to reduce costs, strengthening the investment case for value-focused and contrarian investors despite past problems at one portfolio company. A Small-Cap Comeback Story
• Neutral Sentiment: Elevated options activity: Unusually high options trading indicates increased investor interest and potentially higher near-term volatility, but it does not establish a clear bullish or bearish direction. Compass Diversified Target of Unusually High Options Trading
• Negative Sentiment: Execution and earnings risks remain: Compass Diversified has faced a fraud scandal involving an investment, while its latest reported quarter included a loss per share and negative net margin. These issues could limit upside if the turnaround falters.

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.