Compass (NYSE:COMP) Downgraded by Zacks Research to “Hold”

Zacks Research cut shares of Compass (NYSE:COMP) from a strong-buy rating to a hold rating in a report released on Thursday morning,Zacks.com reports.

Several other equities analysts have also recently commented on COMP. The Goldman Sachs Group boosted their price target on shares of Compass from $10.50 to $12.00 and gave the company a “neutral” rating in a report on Wednesday. Zelman & Associates reissued a “neutral” rating and set a $13.50 price objective on shares of Compass in a research report on Thursday. Oppenheimer boosted their target price on Compass from $15.00 to $18.00 and gave the company an “outperform” rating in a research note on Wednesday. BTIG Research reaffirmed a “buy” rating on shares of Compass in a research note on Wednesday, July 15th. Finally, Barclays raised their price target on Compass from $15.00 to $16.00 and gave the stock an “overweight” rating in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $14.15.

Compass Trading Down 0.0%

NYSE:COMP opened at $12.58 on Thursday. The stock has a market cap of $9.40 billion, a PE ratio of 209.65 and a beta of 2.36. Compass has a fifty-two week low of $6.37 and a fifty-two week high of $13.95. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.84 and a quick ratio of 0.84. The stock’s 50-day moving average is $10.80 and its two-hundred day moving average is $9.75.

Compass (NYSE:COMP) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.08 by $0.03. Compass had a net margin of 0.63% and a return on equity of 4.56%. The business had revenue of $4.31 billion during the quarter, compared to analyst estimates of $4.11 billion. As a group, equities research analysts forecast that Compass will post 0.22 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Robert L. Reffkin sold 23,456 shares of the company’s stock in a transaction 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 completion of the sale, the chief executive officer directly owned 7,757,748 shares in the company, valued at approximately $90,765,651.60. This represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 70,368 shares of company stock valued at $748,246. 2.85% of the stock is currently owned by insiders.

More Compass News

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Analysts see additional upside: Wells Fargo raised its price target to $13 from $12 while maintaining an equal-weight rating. Goldman Sachs also increased its target to $12 from $10.50. Zelman & Associates reaffirmed a neutral rating but set a $13.50 target, implying potential upside from recent levels. Wells Fargo Compass analyst update
• Positive Sentiment: Better-than-expected earnings support the stock: Compass reported quarterly revenue of $4.31 billion versus the $4.11 billion consensus estimate and adjusted earnings of $0.11 per share versus expectations of $0.08. Record net income, strong cash flow and faster-than-planned cost synergies reinforce the company’s profitability improvement story. Compass second-quarter results
• Neutral Sentiment: Analyst sentiment remains mixed: Zelman’s neutral rating contrasts with buy and outperform ratings from several other firms. The average analyst target is approximately $14.21, but the high valuation and limited profitability leave investors sensitive to execution and housing-market conditions. Zelman neutral rating
• Neutral Sentiment: CEO insider sale was limited: CEO Robert Reffkin sold 23,456 shares for about $274,000 under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by only 0.30%, making it a relatively weak bearish signal. Compass SEC insider filing
• Negative Sentiment: Private-listings controversy is the key overhang: Sen. Elizabeth Warren questioned Compass’s partnership with Chicago’s MRED private-listing network, arguing that the arrangement could increase risks of civil-rights violations and discriminatory access to housing. The criticism adds regulatory, reputational and potential legal risk while a congressional inquiry remains active. Compass defended the strategy as beneficial to consumers and agents, but the controversy may limit near-term upside. Senator Warren questions Compass private listings deal

Compass Company Profile

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.