Compass Diversified (NYSE:CODI) Shares Up 7% – Should You Buy?

Compass Diversified Holdings (NYSE:CODI) rose 7% during trading on Tuesday . The company traded as high as $7.04 and last traded at $6.8370. Approximately 529,549 shares were traded during trading, a decline of 59% from the average daily volume of 1,290,765 shares. The stock had previously closed at $6.39.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on CODI shares. B. Riley Financial cut their target price on shares of Compass Diversified from $18.00 to $13.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 21st. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Compass Diversified in a report on Friday, December 26th. CJS Securities upgraded Compass Diversified to an “outperform” rating in a report on Tuesday, January 27th. Zacks Research lowered Compass Diversified from a “hold” rating to a “strong sell” rating in a research report on Monday, January 19th. Finally, Compass Point set a $15.00 price objective on shares of Compass Diversified in a report on Tuesday, January 27th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $14.00.

Compass Diversified Trading Up 7.1%

The company’s 50-day moving average is $5.59 and its two-hundred day moving average is $6.45. The stock has a market capitalization of $514.87 million, a P/E ratio of -2.50 and a beta of 1.09.

Compass Diversified (NYSE:CODI) last posted its earnings results on Wednesday, January 14th. The financial services provider reported ($0.98) EPS for the quarter, missing the consensus estimate of $0.61 by ($1.59). The firm had revenue of $472.56 million during the quarter, compared to the consensus estimate of $497.19 million. Compass Diversified had a positive return on equity of 24.48% and a negative net margin of 7.08%. Sell-side analysts expect that Compass Diversified Holdings will post 1.96 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CODI. Nisa Investment Advisors LLC raised its stake in shares of Compass Diversified by 65.3% during the second quarter. Nisa Investment Advisors LLC now owns 5,043 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 1,992 shares in the last quarter. Nomura Asset Management Co. Ltd. grew its position in Compass Diversified by 29.0% in the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 6,548 shares of the financial services provider’s stock valued at $41,000 after buying an additional 1,471 shares in the last quarter. RPO LLC acquired a new position in Compass Diversified during the 4th quarter valued at about $60,000. Geneos Wealth Management Inc. lifted its stake in shares of Compass Diversified by 68.6% in the 2nd quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider’s stock worth $62,000 after acquiring an additional 4,000 shares during the period. Finally, Focus Partners Wealth bought a new position in shares of Compass Diversified in the third quarter valued at approximately $70,000. Institutional investors own 72.73% of the company’s stock.

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.