Compass Diversified (NYSE:CODI) Downgraded by Wall Street Zen to Sell

Wall Street Zen downgraded shares of Compass Diversified (NYSE:CODI) from a hold rating to a sell rating in a research note released on Saturday.

CODI has been the subject of several other reports. B. Riley Financial raised Compass Diversified from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $11.00 to $15.00 in a research note on Tuesday, August 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass Diversified in a report on Friday, July 17th. UBS Group set a $18.00 price target on shares of Compass Diversified in a research report on Tuesday. Finally, TD Cowen raised their price target on shares of Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a report on Tuesday. Three research 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. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $16.50.

Compass Diversified Trading Up 3.4%

Shares of CODI opened at $12.70 on Friday. The business’s 50-day moving average price is $10.48 and its 200 day moving average price is $9.43. The stock has a market capitalization of $955.40 million, a P/E ratio of -5.85 and a beta of 1.27. Compass Diversified has a 1-year low of $4.58 and a 1-year high of $13.25. The company has a current ratio of 2.26, a quick ratio of 1.56 and a debt-to-equity ratio of 11.90.

Compass Diversified (NYSE:CODI) last announced its earnings results on Monday, August 10th. The financial services provider reported ($0.09) EPS for the quarter. The firm had revenue of $424.04 million during the quarter. Compass Diversified had a negative return on equity of 10.36% and a negative net margin of 5.38%. Analysts expect that Compass Diversified will post 0.22 earnings per share for the current year.

Insider Buying and Selling at Compass Diversified

In other Compass Diversified news, insider Larry L. Enterline bought 67,114 shares of the stock in a transaction on Thursday, August 13th. The shares were purchased at an average cost of $12.42 per share, with a total value of $833,555.88. Following the completion of the transaction, the insider directly owned 100,000 shares of the company’s stock, valued at $1,242,000. This represents a 204.08% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Zachary T. Sawtelle bought 7,000 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were bought at an average price of $12.45 per share, for a total transaction of $87,150.00. Following the completion of the acquisition, the insider owned 63,588 shares of the company’s stock, valued at approximately $791,670.60. This represents a 12.37% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 120,995 shares of company stock worth $1,486,098 in the last 90 days. 1.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Compass Diversified

Large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC acquired a new position in Compass Diversified in the 1st quarter valued at $294,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Compass Diversified by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,635 shares of the financial services provider’s stock valued at $740,000 after purchasing an additional 1,728 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Compass Diversified by 6.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 154,458 shares of the financial services provider’s stock valued at $2,884,000 after purchasing an additional 10,006 shares during the last quarter. Jane Street Group LLC increased its stake in shares of Compass Diversified by 345.5% in the first quarter. Jane Street Group LLC now owns 193,907 shares of the financial services provider’s stock worth $3,620,000 after purchasing an additional 150,386 shares during the period. Finally, Geode Capital Management LLC increased its stake in shares of Compass Diversified by 5.5% in the second quarter. Geode Capital Management LLC now owns 862,549 shares of the financial services provider’s stock worth $5,416,000 after purchasing an additional 44,938 shares during the period. Institutional investors own 72.73% of the company’s stock.

More Compass Diversified News

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

• Positive Sentiment: Analyst upgrades and higher targets: B. Riley Financial upgraded CODI from “Neutral” to “Buy” and raised its price target from $11 to $15. TD Cowen increased its target from $12.50 to $18 and maintained a “Buy” rating, while UBS also set an $18 target. The higher targets are above recent trading levels and likely improved investor sentiment. B. Riley Financial upgrades Compass Diversified
• Positive Sentiment: Multiple 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 purchased 10,000 shares for about $120,100. The transactions materially increased their ownership and may signal that insiders believe CODI is undervalued or expect a business recovery. SEC insider ownership filing
• Positive Sentiment: Turnaround and transaction optimism: Reports have highlighted a $292 million sale and potential management-fee savings, reinforcing the possibility of improved liquidity, lower expenses and stronger portfolio performance. Compass Diversified’s $292 million sale
• Neutral Sentiment: Unusual options activity: Elevated options volume shows increased attention around CODI and could amplify near-term volatility, but it does not establish a clear bullish or bearish direction. Unusual options trading in Compass Diversified
• Negative Sentiment: Losses remain a risk: CODI reported a quarterly loss of $0.09 per share, negative net margin and negative return on equity. Its recovery case therefore depends on successfully improving portfolio-company performance and converting recent strategic developments into sustained earnings.

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.