Compass (NYSE:COMP) Downgraded to Hold Rating by Zacks Research

Compass (NYSE:COMP) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Thursday,Zacks.com reports.

COMP has been the subject of several other reports. Barclays increased their price objective on Compass from $15.00 to $16.00 and gave the stock an “overweight” rating in a research note on Wednesday. The Goldman Sachs Group upped their target price on Compass from $10.50 to $12.00 and gave the company a “neutral” rating in a report on Wednesday. BTIG Research reissued a “buy” rating on shares of Compass in a research report on Wednesday, July 15th. Zelman & Associates reissued a “neutral” rating and issued a $13.50 price target on shares of Compass in a research report on Thursday. Finally, Morgan Stanley raised their price target on shares of Compass from $11.00 to $12.50 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $14.15.

Compass Price Performance

COMP opened at $12.58 on Thursday. The stock has a fifty day moving average of $10.80 and a 200-day moving average of $9.75. The firm has a market capitalization of $9.40 billion, a P/E ratio of 209.65 and a beta of 2.36. Compass has a 12-month low of $6.37 and a 12-month high of $13.95. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 1.11.

Compass (NYSE:COMP) last issued its earnings results on Tuesday, August 4th. The company reported $0.11 EPS for the quarter, topping the consensus estimate of $0.08 by $0.03. Compass had a return on equity of 4.56% and a net margin of 0.63%.The business had revenue of $4.31 billion during the quarter, compared to analysts’ expectations of $4.11 billion. Equities analysts forecast that Compass will post 0.22 EPS for the current fiscal year.

Insider Activity

In related news, CEO Robert L. Reffkin sold 23,456 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $11.70, for a total value of $274,435.20. Following the transaction, the chief executive officer directly owned 7,757,748 shares in the company, valued at approximately $90,765,651.60. This trade represents a 0.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 70,368 shares of company stock worth $748,246. 2.85% of the stock is currently owned by corporate insiders.

More Compass News

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Analysts see additional upside: Wells Fargo raised its price target to $13 from $12 while maintaining an equal-weight rating. Goldman Sachs also increased its target to $12 from $10.50. Zelman & Associates reaffirmed a neutral rating but set a $13.50 target, implying potential upside from recent levels. Wells Fargo Compass analyst update
• Positive Sentiment: Better-than-expected earnings support the stock: Compass reported quarterly revenue of $4.31 billion versus the $4.11 billion consensus estimate and adjusted earnings of $0.11 per share versus expectations of $0.08. Record net income, strong cash flow and faster-than-planned cost synergies reinforce the company’s profitability improvement story. Compass second-quarter results
• Neutral Sentiment: Analyst sentiment remains mixed: Zelman’s neutral rating contrasts with buy and outperform ratings from several other firms. The average analyst target is approximately $14.21, but the high valuation and limited profitability leave investors sensitive to execution and housing-market conditions. Zelman neutral rating
• Neutral Sentiment: CEO insider sale was limited: CEO Robert Reffkin sold 23,456 shares for about $274,000 under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by only 0.30%, making it a relatively weak bearish signal. Compass SEC insider filing
• Negative Sentiment: Private-listings controversy is the key overhang: Sen. Elizabeth Warren questioned Compass’s partnership with Chicago’s MRED private-listing network, arguing that the arrangement could increase risks of civil-rights violations and discriminatory access to housing. The criticism adds regulatory, reputational and potential legal risk while a congressional inquiry remains active. Compass defended the strategy as beneficial to consumers and agents, but the controversy may limit near-term upside. Senator Warren questions Compass private listings deal

Compass Company Profile

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.