Compass (NYSE:COMP) Stock Jumps 8.7% – Still a Buy?

Compass, Inc. (NYSE:COMP) shot up 8.7% during mid-day trading on Thursday. The company traded as high as $9.47 and last traded at $9.5250. Approximately 7,777,415 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 16,011,899 shares. The stock had previously closed at $8.76.

More Compass News

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Falling long-term interest rates have supported housing and real-estate brokerage stocks, helping Compass participate in a recent sector rally. Opendoor and Zillow Surge 7% as Long-Term Rates Retreat; Compass Climbs 6%
• Positive Sentiment: Compass is reportedly tightening its grip on the Los Angeles County market, suggesting improved competitive positioning and potential support for transaction volume and agent recruitment. The Data Drop: Compass tightens its grip on LA
• Positive Sentiment: Needham maintained a “buy” rating, although it reduced its price target to $12 from $17. The new target still implies substantial upside from the referenced share price. Needham Lowers Compass Price Target
• Neutral Sentiment: Compass will release third-quarter 2026 results after the market closes on November 5, followed by a conference call. Investors may remain cautious ahead of the report. Compass to Announce Third Quarter Results on November 5
• Negative Sentiment: Compass sued the California Regional Multiple Listing Service over listing-cooperation rules, alleging anticompetitive conduct. The company said it will cover fines imposed on agents, potentially increasing legal and regulatory costs. Compass files antitrust suit against CRMLS over listing rules
• Negative Sentiment: Several law firms announced or promoted securities class actions involving former Anywhere Real Estate shareholders who received Compass shares in the January merger. The complaints allege misleading disclosures regarding antitrust compliance and investigations, creating potential litigation costs, liability and reputational risk. Compass Investor Class Action Announcement

Analyst Ratings Changes

Several analysts have commented on COMP shares. The Goldman Sachs Group boosted their target price on shares of Compass from $10.50 to $12.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Zacks Research downgraded shares of Compass from a “strong-buy” rating to a “hold” rating in a report on Thursday, August 6th. Compass Point set a $11.00 price objective on shares of Compass in a research note on Wednesday. Weiss Ratings raised shares of Compass from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday. Finally, Wells Fargo & Company decreased their price objective on shares of Compass from $13.00 to $10.00 and set an “equal weight” rating for the company in a report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $13.50.

Compass Stock Performance

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 1.05. The firm has a market cap of $6.89 billion, a price-to-earnings ratio of 151.58 and a beta of 2.32. The stock has a fifty day moving average price of $10.52 and a 200 day moving average price of $9.80.

Compass (NYSE:COMP) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.08 by $0.03. The business had revenue of $4.31 billion for the quarter, compared to the consensus estimate of $4.11 billion. Compass had a return on equity of 3.62% and a net margin of 0.63%. As a group, analysts predict that Compass, Inc. will post 0.19 earnings per share for the current year.

Insider Activity at Compass

In other news, CEO Robert Reffkin sold 23,456 shares of Compass stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $11.70, for a total value of $274,435.20. Following the transaction, the chief executive officer owned 7,757,748 shares of the company’s stock, valued at $90,765,651.60. This trade represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.85% of the stock is currently owned by corporate insiders.

Institutional Trading of Compass

Large investors have recently modified their holdings of the company. Wellington Management Group LLP acquired a new position in Compass in the 2nd quarter valued at $41,838,000. Irenic Capital Management LP acquired a new position in Compass during the 2nd quarter worth $22,156,000. Readystate Asset Management LP acquired a new position in Compass during the 2nd quarter worth $20,237,000. Steamboat Capital Partners LLC bought a new stake in Compass during the second quarter valued at about $17,069,000. Finally, Squarepoint Ops LLC bought a new stake in Compass during the second quarter valued at about $10,232,000. 67.05% of the stock is owned by institutional investors.

About Compass

Compass, Inc is a technology-enabled residential real estate brokerage operating in the United States. The company supports real estate agents and their clients in buying, selling and renting homes, combining brokerage services with digital tools designed to manage listings, marketing, customer relationships and transactions.

Compass provides its agents with a proprietary technology platform that includes customer relationship management, listing and marketing tools, business analytics, and transaction-management capabilities.