Compass Diversified (NYSE:CODI) Trading 9% Higher – Should You Buy?

Compass Diversified Holdings (NYSE:CODI)’s stock price was up 9% during trading on Wednesday . The stock traded as high as $11.57 and last traded at $11.6240. 562,168 shares changed hands during trading, a decline of 53% from the average daily volume of 1,193,172 shares. The stock had previously closed at $10.66.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on CODI shares. Zacks Research upgraded Compass Diversified from a “strong sell” rating to a “hold” rating in a research report on Monday, March 16th. Raymond James Financial started coverage on Compass Diversified in a research report on Wednesday, March 11th. They set a “hold” rating for the company. Wall Street Zen upgraded Compass Diversified from a “sell” rating to a “hold” rating in a research note on Saturday, March 7th. Weiss Ratings raised Compass Diversified from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, April 21st. Finally, B. Riley Financial boosted their price objective on Compass Diversified from $8.00 to $10.50 and gave the stock a “neutral” rating in a report on Tuesday, April 7th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Compass Diversified has a consensus rating of “Hold” and an average price target of $12.75.

Compass Diversified Stock Up 9.1%

The stock has a market cap of $875.12 million, a P/E ratio of -2.98 and a beta of 1.26. The company has a quick ratio of 1.56, a current ratio of 2.67 and a debt-to-equity ratio of 34.60. The company has a 50-day simple moving average of $11.14 and a two-hundred day simple moving average of $8.19.

Insider Activity

In related news, insider Stephen Keller acquired 30,000 shares of the stock in a transaction on Monday, April 6th. The stock was acquired at an average price of $8.61 per share, for a total transaction of $258,300.00. Following the completion of the purchase, the insider owned 20,000 shares of the company’s stock, valued at $172,200. This represents a -300.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Compass Diversified

Several institutional investors and hedge funds have recently modified their holdings of the stock. Essential Partners LLC raised its position in shares of Compass Diversified by 9,263.2% in the 1st quarter. Essential Partners LLC now owns 5,337 shares of the financial services provider’s stock worth $42,000 after purchasing an additional 5,280 shares during the last quarter. RPO LLC purchased a new stake in Compass Diversified during the 4th quarter valued at about $60,000. Geneos Wealth Management Inc. increased its stake in Compass Diversified by 68.6% during the 2nd 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 in the last quarter. Focus Partners Wealth bought a new stake in Compass Diversified during the 3rd quarter valued at about $70,000. Finally, Quantessence Capital LLC purchased a new position in Compass Diversified in the third quarter worth about $70,000. 72.73% of the stock is currently owned by institutional investors.

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.