Compass Diversified (NYSE:CODI) Shares Down 5.9% – Here’s Why

Compass Diversified (NYSE:CODI)’s stock price dropped 5.9% during trading on Monday . The company traded as low as $6.72 and last traded at $6.75. Approximately 185,761 shares were traded during trading, a decline of 57% from the average daily volume of 427,851 shares. The stock had previously closed at $7.18.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. B. Riley downgraded shares of Compass Diversified from a “buy” rating to a “neutral” rating and lowered their target price for the company from $30.00 to $18.00 in a research note on Thursday, May 8th. Jefferies Financial Group lowered Compass Diversified to a “hold” rating in a report on Friday. Finally, William Blair reissued an “outperform” rating on shares of Compass Diversified in a research report on Friday, February 28th.

Compass Diversified Price Performance

The company has a quick ratio of 1.62, a current ratio of 4.22 and a debt-to-equity ratio of 1.51. The firm has a market cap of $473.61 million, a PE ratio of 13.11, a price-to-earnings-growth ratio of 1.25 and a beta of 1.05. The stock has a 50 day moving average price of $12.20 and a two-hundred day moving average price of $18.23.

Compass Diversified Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 24th. Investors of record on Thursday, April 17th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 15.89%. The ex-dividend date was Thursday, April 17th. Compass Diversified’s dividend payout ratio (DPR) is presently -78.13%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CODI. Allspring Global Investments Holdings LLC lifted its stake in shares of Compass Diversified by 10.4% during the first quarter. Allspring Global Investments Holdings LLC now owns 4,789,892 shares of the financial services provider’s stock worth $88,709,000 after buying an additional 451,731 shares during the period. Nuveen LLC purchased a new position in Compass Diversified in the 1st quarter worth $7,785,000. Raymond James Financial Inc. acquired a new stake in Compass Diversified during the 4th quarter worth about $4,250,000. Bank of America Corp DE grew its stake in Compass Diversified by 14.9% during the 4th quarter. Bank of America Corp DE now owns 1,203,606 shares of the financial services provider’s stock valued at $27,779,000 after purchasing an additional 156,074 shares during the last quarter. Finally, Jane Street Group LLC grew its stake in Compass Diversified by 345.5% during the 1st quarter. Jane Street Group LLC now owns 193,907 shares of the financial services provider’s stock valued at $3,620,000 after purchasing an additional 150,386 shares during the last quarter. Institutional investors and hedge funds own 72.73% of the company’s stock.

Compass Diversified Company Profile

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, healthcare, safety & security, electronic components, food and foodservice.