Compass Diversified (NYSE:CODI) Lowered to “Strong Sell” Rating by Zacks Research

Compass Diversified (NYSE:CODI) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Monday,Zacks.com reports.

Several other research firms also recently issued reports on CODI. CJS Securities upgraded shares of Compass Diversified to a “hold” rating in a report on Thursday, December 11th. Weiss Ratings reiterated a “sell (d)” rating on shares of Compass Diversified in a research note on Friday, December 26th. Finally, Wall Street Zen lowered Compass Diversified from a “hold” rating to a “sell” rating in a research note on Saturday, December 20th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Compass Diversified has an average rating of “Reduce” and a consensus target price of $18.00.

Compass Diversified Trading Down 6.2%

CODI opened at $5.24 on Monday. The business has a 50 day moving average of $5.56 and a 200-day moving average of $6.46. The stock has a market capitalization of $393.88 million, a price-to-earnings ratio of -1.91 and a beta of 1.06. Compass Diversified has a 1-year low of $4.58 and a 1-year high of $22.21.

Compass Diversified (NYSE:CODI) last announced its earnings results on Wednesday, January 14th. The financial services provider reported ($0.98) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.61 by ($1.59). The company had revenue of $472.56 million for the quarter, compared to the consensus estimate of $497.19 million. Compass Diversified had a positive return on equity of 24.48% and a negative net margin of 7.08%. Equities analysts predict that Compass Diversified will post 1.96 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CODI. Teacher Retirement System of Texas grew its stake in shares of Compass Diversified by 467.8% in the 2nd quarter. Teacher Retirement System of Texas now owns 86,609 shares of the financial services provider’s stock valued at $544,000 after purchasing an additional 71,355 shares during the period. Allspring Global Investments Holdings LLC boosted its stake in Compass Diversified by 2.6% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 4,912,110 shares of the financial services provider’s stock valued at $31,388,000 after buying an additional 122,218 shares in the last quarter. AlphaQuest LLC grew its position in Compass Diversified by 345.3% in the second quarter. AlphaQuest LLC now owns 71,035 shares of the financial services provider’s stock valued at $446,000 after acquiring an additional 55,084 shares during the period. Inspire Investing LLC raised its stake in Compass Diversified by 238.6% during the second quarter. Inspire Investing LLC now owns 62,229 shares of the financial services provider’s stock worth $391,000 after acquiring an additional 43,849 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its holdings in shares of Compass Diversified by 808.2% during the second quarter. Y Intercept Hong Kong Ltd now owns 377,880 shares of the financial services provider’s stock valued at $2,373,000 after acquiring an additional 336,271 shares during the period. Institutional investors and hedge funds own 72.73% of the company’s stock.

About Compass Diversified

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.