Compass Diversified (NYSE:CODI) Shares Up 17.1% – Should You Buy?

Shares of Compass Diversified Holdings (NYSE:CODI) rose 17.1% during trading on Monday . The stock traded as high as $7.96 and last traded at $7.8230. Approximately 737,005 shares changed hands during trading, a decline of 44% from the average daily volume of 1,309,310 shares. The stock had previously closed at $6.68.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Wall Street Zen upgraded shares of Compass Diversified from a “sell” rating to a “hold” rating in a report on Saturday, March 7th. Weiss Ratings reiterated a “sell (d)” rating on shares of Compass Diversified in a research note on Friday, December 26th. Zacks Research upgraded Compass Diversified from a “strong sell” rating to a “hold” rating in a research note on Monday, March 16th. Raymond James Financial started coverage on shares of Compass Diversified in a research note on Wednesday, March 11th. They issued a “hold” rating on the stock. Finally, B. Riley Financial dropped their price objective on Compass Diversified from $13.00 to $8.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 3rd. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $11.50.

Compass Diversified Trading Up 16.1%

The company has a quick ratio of 1.26, a current ratio of 2.42 and a debt-to-equity ratio of 19.20. The stock’s 50 day moving average is $6.57 and its 200-day moving average is $6.37. The company has a market cap of $583.46 million, a PE ratio of -1.98 and a beta of 1.04.

Compass Diversified (NYSE:CODI) last released its earnings results on Wednesday, January 14th. The financial services provider reported ($0.98) EPS for the quarter, missing analysts’ consensus estimates of $0.61 by ($1.59). Compass Diversified had a negative net margin of 12.09% and a positive return on equity of 24.48%. As a group, sell-side analysts anticipate that Compass Diversified Holdings will post 1.96 EPS for the current year.

Hedge Funds Weigh In On Compass Diversified

Institutional investors and hedge funds have recently modified their holdings of the business. Allspring Global Investments Holdings LLC lifted its holdings in Compass Diversified by 1.2% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 4,346,106 shares of the financial services provider’s stock valued at $20,209,000 after purchasing an additional 49,423 shares in the last quarter. Mangrove Partners IM LLC raised its position in Compass Diversified by 48.7% in the third quarter. Mangrove Partners IM LLC now owns 3,684,800 shares of the financial services provider’s stock valued at $24,393,000 after purchasing an additional 1,206,524 shares during the period. Jacobs Levy Equity Management Inc. lifted its position in Compass Diversified by 75.2% in the fourth 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 acquired a new position in shares of Compass Diversified in the 4th quarter worth approximately $7,626,000. Finally, CenterBook Partners LP purchased a new position in shares of Compass Diversified during the fourth quarter worth $6,597,000. Hedge funds and other institutional investors own 72.73% of the company’s stock.

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.