Renaissance Technologies LLC Purchases New Position in Compass Diversified Holdings $CODI

Renaissance Technologies LLC acquired a new position in shares of Compass Diversified Holdings (NYSE:CODI) during the first quarter, HoldingsChannel reports. The institutional investor acquired 93,607 shares of the financial services provider’s stock, valued at approximately $736,000.

Other large investors have also modified their holdings of the company. Jacobs Levy Equity Management Inc. grew its position in shares of Compass Diversified by 75.2% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,966,408 shares of the financial services provider’s stock valued at $9,439,000 after buying an additional 843,965 shares during the last quarter. SG Capital Management LLC purchased a new stake in Compass Diversified in the fourth quarter valued at $7,626,000. CenterBook Partners LP purchased a new stake in Compass Diversified in the fourth quarter valued at $6,597,000. State Street Corp boosted its stake in Compass Diversified by 2.3% in the fourth quarter. State Street Corp now owns 1,238,792 shares of the financial services provider’s stock valued at $5,946,000 after acquiring an additional 27,774 shares in the last quarter. Finally, Western Standard LLC acquired a new position in Compass Diversified in the fourth quarter valued at $5,592,000. Institutional investors and hedge funds own 72.73% of the company’s stock.

Compass Diversified Trading Up 3.4%

NYSE CODI opened at $12.70 on Friday. The company has a debt-to-equity ratio of 11.90, a quick ratio of 1.56 and a current ratio of 2.26. The firm has a market cap of $955.40 million, a PE ratio of -5.85 and a beta of 1.27. Compass Diversified Holdings has a one year low of $4.58 and a one year high of $13.25. The firm’s fifty day moving average is $10.48 and its two-hundred day moving average is $9.43.

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

Compass Diversified News Summary

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.

Insider Buying and Selling

In related news, insider Stephen Keller purchased 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased at an average price of $12.01 per share, for a total transaction of $120,100.00. Following the transaction, the insider directly owned 51,840 shares of the company’s stock, valued at approximately $622,598.40. The trade was a 23.90% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Larry L. Enterline acquired 67,114 shares of Compass Diversified stock in a transaction on Thursday, August 13th. The shares were bought at an average cost of $12.42 per share, with a total value of $833,555.88. Following the completion of the purchase, the insider owned 100,000 shares in the company, valued at $1,242,000. The trade was a 204.08% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have bought 120,995 shares of company stock worth $1,486,098. Insiders own 1.60% of the company’s stock.

Wall Street Analysts Forecast Growth

CODI has been the topic of a number of research analyst reports. UBS Group set a $18.00 target price on Compass Diversified in a research report on Tuesday. Wall Street Zen cut Compass Diversified from a “hold” rating to a “sell” rating in a research report on Saturday. TD Cowen raised their price target on Compass Diversified from $12.50 to $18.00 and gave the stock a “buy” rating in a research note on Tuesday. B. Riley Financial upgraded 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, August 11th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Compass Diversified has a consensus rating of “Hold” and a consensus price target of $16.50.

Compass Diversified 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.