Compass Diversified (NYSE:CODI) Insider Zachary Sawtelle Acquires 7,000 Shares of Stock

Compass Diversified Holdings (NYSE:CODI) insider Zachary Sawtelle bought 7,000 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were acquired at an average price of $12.45 per share, with a total value of $87,150.00. Following the completion of the acquisition, the insider directly owned 63,588 shares in the company, valued at $791,670.60. This represents a 12.37% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Compass Diversified Trading Up 1.7%

Shares of CODI opened at $12.28 on Friday. The company has a debt-to-equity ratio of 34.60, a current ratio of 2.67 and a quick ratio of 1.56. Compass Diversified Holdings has a 1-year low of $4.58 and a 1-year high of $13.24. The stock has a market cap of $923.57 million, a price-to-earnings ratio of -5.66 and a beta of 1.27. The firm has a 50 day simple moving average of $10.44 and a 200-day simple moving average of $9.41.

Compass Diversified (NYSE:CODI) last released 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 company had revenue of $424.04 million for the quarter. Equities analysts forecast that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

More Compass Diversified News

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

• Positive Sentiment: Analyst upgrades: B. Riley Financial raised its rating to “Buy” from “Neutral” and increased its price target to $15 from $11. TD Cowen also raised its target to $18 from $12.50, while UBS set an $18 target. The analysts’ targets are above the recent trading level and have helped improve investor sentiment. B. Riley Financial upgrades Compass Diversified
• Positive Sentiment: Heavy insider buying: Zachary T. Sawtelle purchased 25,000 shares for approximately $299,750 on August 12 and another 7,000 shares for $87,150 on August 13. Stephen Keller also bought 10,000 shares for about $120,100. The purchases significantly increased their holdings and may signal that insiders view CODI as undervalued or expect improving performance. SEC insider ownership filing
• Positive Sentiment: Potential cost savings: A renegotiated management-fee agreement is expected to lower expenses, supporting the turnaround case for the middle-market investment company. This has attracted interest from value-oriented investors despite challenges at one portfolio company. Small-cap comeback story on Compass Diversified
• Neutral Sentiment: Unusual options activity: Elevated options trading reflects increased investor attention and could lead to greater near-term volatility, but it does not clearly indicate whether traders expect further gains or a pullback. Unusual options trading in Compass Diversified
• Negative Sentiment: Fundamental risks persist: CODI’s latest quarter included a $0.09-per-share loss, a negative net margin and negative return on equity. The company also continues to face reputational and execution concerns following fraud at an investment, which could undermine the recovery story.

Wall Street Analysts Forecast Growth

CODI has been the subject of several recent analyst reports. TD Cowen lifted their target price on shares of Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a research note on Tuesday. UBS Group set a $18.00 target price on Compass Diversified in a research report on Tuesday. B. Riley Financial raised Compass Diversified from a “neutral” rating to a “buy” rating and raised their price target for the stock from $11.00 to $15.00 in a research note on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass Diversified in a research note on Friday, July 17th. 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 company. Based on data from MarketBeat, Compass Diversified currently has an average rating of “Hold” and a consensus target price of $16.50.

Institutional Investors Weigh In On Compass Diversified

Hedge funds have recently modified their holdings of the stock. Essential Partners LLC raised its stake in shares of 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 valued at $42,000 after purchasing an additional 5,280 shares during the period. RPO LLC purchased a new position in shares of Compass Diversified in the fourth quarter valued at $60,000. Geneos Wealth Management Inc. grew its holdings in 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 valued at $62,000 after purchasing an additional 4,000 shares in the last quarter. Focus Partners Wealth acquired a new position in Compass Diversified in the 3rd quarter worth $70,000. Finally, Quantessence Capital LLC purchased a new position in Compass Diversified in the 3rd quarter valued at about $70,000. 72.73% of the stock is currently 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.