Compass Diversified (NYSE:CODI) Shares Gap Up After Insider Buying Activity

Shares of Compass Diversified Holdings (NYSE:CODI) gapped up prior to trading on Tuesday following insider buying activity. The stock had previously closed at $9.55, but opened at $9.90. Compass Diversified shares last traded at $9.6750, with a volume of 254,917 shares.

Specifically, insider Stephen Keller purchased 30,000 shares of the business’s 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 purchase, the insider owned 20,000 shares of the company’s stock, valued at approximately $172,200. This trade represents a -300.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Analyst Ratings Changes

A number of research firms have issued reports on CODI. Raymond James Financial began coverage on Compass Diversified in a research note 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. CJS Securities upgraded Compass Diversified to an “outperform” rating in a research note on Tuesday, January 27th. Zacks Research upgraded Compass Diversified from a “strong sell” rating to a “hold” rating in a research note on Monday, March 16th. Finally, B. Riley Financial lifted their price target on Compass Diversified from $8.00 to $10.50 and gave the company a “neutral” rating in a research note on Tuesday. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $12.75.

Trending Headlines about Compass Diversified

Here are the key news stories impacting Compass Diversified this week:

• Positive Sentiment: Insider Stephen Keller bought 30,000 shares at about $8.61, signaling management confidence and adding direct demand for the stock. Insider Stephen Keller Buys 30,000 Shares
• Positive Sentiment: Compass completed a $292M strategic sale/ divestiture that boosts cash/liquidity and reinforces its buy‑build‑sell strategy — a tangible de‑risking move that investors typically reward. Compass Diversified’s $292M Sale Ignites Stock
• Positive Sentiment: B. Riley raised its price target from $8.00 to $10.50 (while keeping a “neutral” rating), implying roughly mid‑teens upside vs. recent pricing and lending support to the rally. B. Riley Price Target Raise
• Neutral Sentiment: Reference item: Compass’s listed preferred series (7.25% Pfd. Series A) and broader institutional ownership changes are background factors but are unlikely to move the stock alone. Compass Diversified Holdings 7.25% Pfd. Series A
• Negative Sentiment: Reporting that the company story is “shifting” after a restatement and analyst reassessment raises governance/earnings credibility concerns that could cap multiple expansion until clarity improves. How The Compass Diversified (CODI) Story Is Shifting After Restatement And Analyst Reassessment

Compass Diversified Price Performance

The company has a current ratio of 2.42, a quick ratio of 1.26 and a debt-to-equity ratio of 19.20. The company has a market cap of $721.93 million, a P/E ratio of -2.47 and a beta of 1.00. The business’s fifty day moving average is $6.95 and its 200 day moving average is $6.44.

Compass Diversified (NYSE:CODI) last posted its quarterly 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). As a group, sell-side analysts anticipate that Compass Diversified Holdings will post 1.96 EPS for the current year.

Institutional Investors Weigh In On Compass Diversified

Hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. raised its holdings in shares of Compass Diversified by 68.6% in the 2nd quarter. Geneos Wealth Management Inc. now owns 9,830 shares of the financial services provider’s stock worth $62,000 after purchasing an additional 4,000 shares during the period. Focus Partners Wealth bought a new stake in shares of Compass Diversified in the 3rd quarter worth approximately $70,000. Quantessence Capital LLC bought a new stake in shares of Compass Diversified in the 3rd quarter worth approximately $70,000. Diversify Wealth Management LLC bought a new stake in shares of Compass Diversified in the 2nd quarter worth approximately $81,000. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Compass Diversified in the 3rd quarter worth approximately $81,000. 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.