Compass Diversified (NYSE:CODI) Posts Quarterly Earnings Results, Misses Estimates By $1.33 EPS

Compass Diversified (NYSE:CODI) issued its quarterly earnings results on Thursday. The financial services provider reported ($1.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($1.33), FiscalAI reports. Compass Diversified had a positive return on equity of 24.48% and a negative net margin of 7.08%.The firm had revenue of $460.41 million during the quarter, compared to analyst estimates of $486.17 million.

Compass Diversified Price Performance

Shares of NYSE:CODI traded up $0.17 during midday trading on Thursday, reaching $8.38. 1,462,869 shares of the company’s stock were exchanged, compared to its average volume of 1,354,867. The stock has a market cap of $630.51 million, a price-to-earnings ratio of -3.06 and a beta of 1.09. Compass Diversified has a fifty-two week low of $4.58 and a fifty-two week high of $22.21. The firm’s 50 day simple moving average is $5.91 and its two-hundred day simple moving average is $6.49.

Institutional Investors Weigh In On Compass Diversified

Institutional investors and hedge funds have recently made changes to their positions in the stock. RPO LLC purchased a new position in shares of Compass Diversified during the 4th quarter worth approximately $60,000. Geneos Wealth Management Inc. grew its stake in shares of Compass Diversified by 68.6% in the second quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider’s stock valued at $62,000 after buying an additional 4,000 shares in the last quarter. Quantessence Capital LLC purchased a new stake in shares of Compass Diversified in the 3rd quarter valued at $70,000. Focus Partners Wealth acquired a new position in Compass Diversified during the 3rd quarter worth about $70,000. Finally, Voleon Capital Management LP acquired a new position in Compass Diversified during the 2nd quarter worth about $77,000. 72.73% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have issued reports on CODI shares. B. Riley Financial lowered 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 restated a “sell (d)” rating on shares of Compass Diversified in a research report on Friday, December 26th. Zacks Research downgraded shares of Compass Diversified from a “hold” rating to a “strong sell” rating in a report on Monday, January 19th. Wall Street Zen lowered shares of Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday, December 20th. Finally, CJS Securities upgraded Compass Diversified to an “outperform” rating in a report on Tuesday, January 27th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Compass Diversified has an average rating of “Hold” and an average target price of $14.00.

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.