Compass (NYSE:COMP) Sets New 12-Month High – Here’s Why

Compass, Inc. (NYSE:COMP)’s stock price hit a new 52-week high on Wednesday . The stock traded as high as $12.02 and last traded at $11.6280, with a volume of 15825831 shares changing hands. The stock had previously closed at $10.83.

Trending Headlines about Compass

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Compass announced a proposed private offering of $750.0 million in convertible senior notes due 2031, with an option for an additional $112.5 million. The raise should bolster liquidity and give the company flexibility for operations or refinancing. Note: convertible structure presents future dilution risk if holders convert. Compass, Inc. Announces Proposed Offering of $750,000,000 Convertible Senior Notes
• Neutral Sentiment: Reports that Compass Coffee has filed for Chapter 11 and revealed a stalking-horse bidder; this is a separate company and not the publicly traded Compass, Inc. but may cause short-term market confusion among retail investors. Compass Coffee reveals stalking horse bidder in bankruptcy
• Neutral Sentiment: News that Compass Diversified (a different listed company) was flagged by the NYSE for governance noncompliance is unrelated to COMP’s operations; again, potential for ticker-name confusion but no direct corporate impact. Compass Diversified flagged by NYSE for governance noncompliance
• Negative Sentiment: Wall Street Zen lowered its rating on COMP, which can weigh on sentiment and short-term selling pressure from momentum-driven investors. Compass (NYSE:COMP) Stock Rating Lowered by Wall Street Zen
• Negative Sentiment: Shareholder litigation against Anywhere over disclosures related to its merger with Compass introduces legal and timing uncertainty for the transaction; if the suit delays or alters deal terms, it could negatively affect Compass’s strategic trajectory and valuation. Stockholders sue Anywhere over Compass merger disclosures

Analyst Upgrades and Downgrades

COMP has been the subject of several research reports. Wall Street Zen cut Compass from a “buy” rating to a “hold” rating in a research report on Wednesday. Barclays raised shares of Compass from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $9.00 to $13.00 in a report on Monday, December 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Compass in a report on Wednesday, October 8th. Needham & Company LLC reiterated a “buy” rating and issued a $11.00 target price on shares of Compass in a research note on Tuesday, November 4th. Finally, Compass Point set a $13.00 target price on Compass in a research report on Monday, December 8th. Seven research analysts have 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. Based on data from MarketBeat, Compass presently has an average rating of “Moderate Buy” and an average price target of $11.06.

Compass Stock Up 10.0%

The business has a 50-day simple moving average of $9.95 and a two-hundred day simple moving average of $8.59. The stock has a market capitalization of $6.68 billion, a P/E ratio of -105.95 and a beta of 2.53.

Compass (NYSE:COMP) last issued its earnings results on Tuesday, November 4th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.02) by $0.01. The company had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.79 billion. Compass had a negative net margin of 0.85% and a negative return on equity of 8.83%. On average, sell-side analysts forecast that Compass, Inc. will post 0.09 earnings per share for the current year.

Insider Activity at Compass

In other Compass news, CFO Scott R. Wahlers sold 49,900 shares of Compass stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $11.00, for a total value of $548,900.00. Following the completion of the transaction, the chief financial officer owned 363,725 shares in the company, valued at approximately $4,000,975. The trade was a 12.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, General Counsel Bradley K. Serwin sold 20,953 shares of the business’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $11.00, for a total value of $230,483.00. Following the completion of the transaction, the general counsel directly owned 258,712 shares in the company, valued at approximately $2,845,832. This represents a 7.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 134,181 shares of company stock worth $1,448,384 over the last three months. 4.08% of the stock is owned by company insiders.

About Compass

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.