Compass Diversified (NYSE:CODI) Upgraded to Buy by Zacks Investment Research

Compass Diversified (NYSE:CODI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday, Zacks.com reports. The firm presently has a $27.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s price target suggests a potential upside of 9.49% from the stock’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 $0.86 during mid-day trading on Monday, hitting $24.66. The stock had a trading volume of 506,658 shares, compared to its average volume of 203,911. The stock has a 50-day simple moving average of $21.96 and a two-hundred day simple moving average of $19.60. The company has a market capitalization of $1.43 billion, a PE ratio of 17.13 and a beta of 1.18. Compass Diversified has a twelve month low of $11.60 and a twelve month high of $24.90. The company has a current ratio of 3.46, a quick ratio of 2.16 and a debt-to-equity ratio of 0.77.

Compass Diversified (NYSE:CODI) last posted its quarterly earnings results on Wednesday, October 30th. The financial services provider reported $0.36 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.04). Compass Diversified had a return on equity of 11.22% and a net margin of 18.42%. The firm had revenue of $388.31 million for the quarter, compared to analyst estimates of $372.47 million. Sell-side analysts predict that Compass Diversified will post 1.65 EPS for the current fiscal year.

In other news, insider Elias Sabo bought 18,334 shares of the stock in a transaction that occurred on Wednesday, November 13th. The stock was purchased at an average price of $22.02 per share, for a total transaction of $403,714.68. Following the completion of the purchase, the insider now owns 585,549 shares in the company, valued at approximately $12,893,788.98. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. 3.70% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of CODI. Kavar Capital Partners LLC purchased a new position in shares of Compass Diversified in the 2nd quarter valued at $31,000. Sigma Planning Corp purchased a new position in shares of Compass Diversified during the second quarter worth about $243,000. Envestnet Asset Management Inc. purchased a new position in shares of Compass Diversified during the second quarter worth about $211,000. Investment Counselors of Maryland LLC grew its holdings in shares of Compass Diversified by 1.1% during the second quarter. Investment Counselors of Maryland LLC now owns 1,058,681 shares of the financial services provider’s stock worth $20,231,000 after purchasing an additional 11,573 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its position in shares of Compass Diversified by 49.7% during the second quarter. JPMorgan Chase & Co. now owns 2,993 shares of the financial services provider’s stock worth $57,000 after purchasing an additional 993 shares in the last quarter. 30.17% of the stock is currently owned by institutional investors and hedge funds.

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.

Featured Story: What are high-yield dividend stocks?

Get a free copy of the Zacks research report on Compass Diversified (CODI)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Compass Diversified Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Compass Diversified and related companies with MarketBeat.com's FREE daily email newsletter.