Compass Diversified (NYSE:CODI) Plans Quarterly Dividend of $0.25

Compass Diversified (NYSE:CODI) announced a quarterly dividend on Monday, January 6th,Wall Street Journal reports. Stockholders of record on Thursday, January 16th will be paid a dividend of 0.25 per share by the financial services provider on Thursday, January 23rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.56%. The ex-dividend date is Thursday, January 16th.

Compass Diversified has decreased its dividend by an average of 11.5% per year over the last three years. Compass Diversified has a dividend payout ratio of 40.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Compass Diversified to earn $2.19 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 45.7%.

Compass Diversified Price Performance

CODI stock traded down $0.57 during trading on Tuesday, hitting $21.91. The stock had a trading volume of 206,187 shares, compared to its average volume of 163,922. The company’s 50-day moving average price is $23.00 and its two-hundred day moving average price is $22.15. The stock has a market capitalization of $1.66 billion, a P/E ratio of 45.65, a PEG ratio of 1.54 and a beta of 1.65. The company has a debt-to-equity ratio of 1.51, a current ratio of 4.22 and a quick ratio of 1.62. Compass Diversified has a twelve month low of $19.76 and a twelve month high of $25.07.

Compass Diversified (NYSE:CODI) last posted its earnings results on Wednesday, October 30th. The financial services provider reported $0.64 EPS for the quarter, beating analysts’ consensus estimates of $0.54 by $0.10. Compass Diversified had a return on equity of 12.25% and a net margin of 6.24%. The company had revenue of $582.62 million for the quarter, compared to the consensus estimate of $571.68 million. During the same quarter in the previous year, the business earned $0.34 earnings per share. The company’s revenue for the quarter was up 11.8% on a year-over-year basis. As a group, research analysts predict that Compass Diversified will post 1.96 EPS for the current fiscal year.

Insider Transactions at Compass Diversified

In related news, major shareholder Cgi Magyar Holdings Llc sold 135,274 shares of the stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $23.05, for a total transaction of $3,118,065.70. Following the completion of the sale, the insider now owns 7,456,197 shares of the company’s stock, valued at approximately $171,865,340.85. This represents a 1.78 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.76% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, TD Cowen began coverage on shares of Compass Diversified in a report on Wednesday, November 27th. They set a “buy” rating and a $34.00 price objective on the stock.

About Compass Diversified

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, healthcare, safety & security, electronic components, food and foodservice.