Stephen Keller Purchases 10,000 Shares of Compass Diversified (NYSE:CODI) Stock

Compass Diversified Holdings (NYSE:CODI) insider Stephen Keller acquired 10,000 shares of the company’s stock in a transaction on Wednesday, August 12th. The stock was bought at an average cost of $12.01 per share, with a total value of $120,100.00. Following the completion of the acquisition, the insider directly owned 51,840 shares in the company, valued at approximately $622,598.40. This represents a 23.90% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link.

Compass Diversified Stock Performance

NYSE:CODI opened at $12.70 on Friday. The company has a market cap of $955.35 million, a price-to-earnings ratio of -5.85 and a beta of 1.27. Compass Diversified Holdings has a fifty-two week low of $4.58 and a fifty-two week high of $13.25. 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 stock has a fifty day moving average price of $10.48 and a 200-day moving average price of $9.43.

Compass Diversified (NYSE:CODI) last issued its quarterly earnings results on Monday, August 10th. The financial services provider reported ($0.09) EPS for the quarter. The company 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%. As a group, equities analysts anticipate that Compass Diversified Holdings will post 0.22 EPS for the current fiscal year.

Hedge Funds Weigh In On Compass Diversified

Institutional investors have recently added to or reduced their stakes in the stock. SG Capital Management LLC bought a new position in Compass Diversified in the 4th quarter valued at approximately $7,626,000. CenterBook Partners LP bought a new stake in shares of Compass Diversified during the fourth quarter worth $6,597,000. Western Standard LLC acquired a new position in shares of Compass Diversified during the fourth quarter worth $5,592,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Compass Diversified during the fourth quarter worth $4,099,000. Finally, Jacobs Levy Equity Management Inc. lifted its stake 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 acquiring an additional 843,965 shares during the last quarter. 72.73% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have recently commented on CODI. TD Cowen boosted their target price on shares of Compass Diversified from $12.50 to $18.00 and gave the company a “buy” rating in a research report on Tuesday. Wall Street Zen lowered shares of Compass Diversified from a “hold” rating to a “sell” rating in a research report on Saturday. UBS Group set a $18.00 price target on shares of Compass Diversified in a research report on Tuesday. B. Riley Financial raised shares of Compass Diversified from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $11.00 to $15.00 in a research note on Tuesday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Compass Diversified in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Compass Diversified presently has a consensus rating of “Hold” and a consensus target price of $16.50.

Key Stories Impacting Compass Diversified

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.

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.