Compass Diversified (NYSE:CODI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, Zacks.com reports. The firm currently has a $19.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 12.96% from the company’s current price.
According to Zacks, “COMPASS DIVERSIFIED was formed to acquire and manage a group of middle market businesses that are headquartered in North America. CODI provides public investors with an opportunity to participate in the ownership and growth of companies which have historically been owned by private equity firms, wealthy individuals or families. CODI’s disciplined approach to its target market provides opportunities to methodically purchase attractive businesses at values that are accretive to its shareholders. For sellers of businesses, CODI’s unique structure allows CODI to acquire businesses efficiently with no financing contingencies and, following acquisition, to provide its companies with substantial access to growth capital. “
NYSE CODI traded up $0.24 during mid-day trading on Wednesday, reaching $16.82. 142,700 shares of the stock were exchanged, compared to its average volume of 178,646. Compass Diversified has a 1-year low of $11.60 and a 1-year high of $18.35. The firm has a market cap of $986.55 million, a P/E ratio of 11.68 and a beta of 0.98. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.56 and a current ratio of 2.82.
Compass Diversified (NYSE:CODI) last announced its earnings results on Wednesday, February 27th. The financial services provider reported $0.36 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.41 by ($0.05). Compass Diversified had a return on equity of 7.63% and a net margin of 6.11%. The firm had revenue of $452.52 million for the quarter, compared to analyst estimates of $440.80 million. As a group, equities analysts predict that Compass Diversified will post 1.72 EPS for the current year.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC raised its stake in Compass Diversified by 20.7% during the third quarter. Renaissance Technologies LLC now owns 225,531 shares of the financial services provider’s stock worth $4,093,000 after purchasing an additional 38,708 shares during the period. Morgan Stanley raised its stake in Compass Diversified by 3.7% during the third quarter. Morgan Stanley now owns 339,331 shares of the financial services provider’s stock worth $6,159,000 after purchasing an additional 12,213 shares during the period. D.A. Davidson & CO. raised its stake in Compass Diversified by 54.9% during the fourth quarter. D.A. Davidson & CO. now owns 55,958 shares of the financial services provider’s stock worth $697,000 after purchasing an additional 19,837 shares during the period. Janney Montgomery Scott LLC raised its stake in Compass Diversified by 0.6% during the fourth quarter. Janney Montgomery Scott LLC now owns 164,009 shares of the financial services provider’s stock worth $2,042,000 after purchasing an additional 1,045 shares during the period. Finally, Northwest Quadrant Wealth Management LLC raised its stake in Compass Diversified by 10.8% during the fourth quarter. Northwest Quadrant Wealth Management LLC now owns 17,801 shares of the financial services provider’s stock worth $261,000 after purchasing an additional 1,740 shares during the period. Hedge funds and other institutional investors own 34.22% of the company’s stock.
About Compass Diversified
Compass Diversified Holdings LLC is a private equity firm specializing in acquisitions, buyouts, industry consolidation, recapitalization, and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, safety & security, electronic components, food, foodservice.
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