Zacks Research Downgrades Compass Diversified (NYSE:CODI) to Strong Sell

Compass Diversified (NYSE:CODI) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other research firms have also commented on CODI. Weiss Ratings reissued a “sell (d)” rating on shares of Compass Diversified in a research note on Friday, December 26th. Wall Street Zen downgraded Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday, December 20th. Finally, CJS Securities raised Compass Diversified to a “hold” rating in a research note on Thursday, December 11th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Compass Diversified has a consensus rating of “Reduce” and a consensus price target of $18.00.

Compass Diversified Stock Down 6.2%

NYSE:CODI opened at $5.24 on Monday. The stock has a market capitalization of $393.88 million, a price-to-earnings ratio of -1.91 and a beta of 1.06. Compass Diversified has a 52 week low of $4.58 and a 52 week high of $22.21. The firm has a 50 day moving average of $5.56 and a 200 day moving average of $6.46.

Compass Diversified (NYSE:CODI) last released its quarterly earnings data on Wednesday, January 14th. The financial services provider reported ($0.98) earnings per share for the quarter, missing analysts’ consensus estimates of $0.61 by ($1.59). Compass Diversified had a negative net margin of 7.08% and a positive return on equity of 24.48%. The company had revenue of $472.56 million for the quarter, compared to analysts’ expectations of $497.19 million. As a group, analysts expect that Compass Diversified will post 1.96 EPS for the current year.

Institutional Investors Weigh In On Compass Diversified

Large investors have recently made changes to their positions in the company. Nisa Investment Advisors LLC raised its stake in Compass Diversified by 65.3% during the 2nd quarter. Nisa Investment Advisors LLC now owns 5,043 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 1,992 shares during the period. Nomura Asset Management Co. Ltd. boosted its stake in shares of Compass Diversified by 29.0% during the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 6,548 shares of the financial services provider’s stock worth $41,000 after acquiring an additional 1,471 shares in the last quarter. Geneos Wealth Management Inc. raised its position 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 purchasing an additional 4,000 shares during the period. Focus Partners Wealth bought a new stake in Compass Diversified during the third quarter valued at about $70,000. Finally, Quantessence Capital LLC bought a new position in Compass Diversified in the 3rd quarter worth approximately $70,000. Institutional investors and hedge funds own 72.73% of the company’s stock.

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.