On September 2, 2023, it was reported that William Blair Investment Management LLC increased its holdings in Compass Diversified (NYSE:CODI) by 26.7% during the first quarter, according to the company’s latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC). The investment management firm now owns 1,861,906 shares of Compass Diversified’s stock, acquiring an additional 392,572 shares during the quarter. This equates to a stake of approximately 2.59% in the financial services provider and has a market value of $35,525,000.
Compass Diversified recently released its earnings results on August 2nd, revealing that the company reported earnings per share (EPS) of $0.44 for the quarter, surpassing the consensus estimate of $0.36 by $0.08. This positive outcome is a reflection of Compass Diversified’s strong performance in various areas.
With a return on equity of 8.12% and a net margin of 2.95%, Compass Diversified continues to demonstrate its financial stability and success in the industry. Despite slightly lower revenue than analyst expectations at $524.16 million for the quarter compared to an anticipated $559.30 million, Compass Diversified remains well-positioned for growth.
Looking ahead to the current fiscal year, analysts predict that Compass Diversified will post an earnings per share figure of 1.66 EPS.
The increase in holdings by William Blair Investment Management LLC signifies their confidence in Compass Diversified’s potential for future success. As an investment management firm known for its strategic approach to portfolio management and risk assessment, William Blair’s increased position in Compass Diversified is likely based on thorough analysis and positive prospects for the company.
Investors may find this news encouraging as it highlights growing interest and support from prominent financial institutions in Compass Diversified’s stock. The boost from William Blair Investment Management LLC further solidifies Compass Diversified’s position as an attractive investment opportunity in the financial services sector.
As always, investors and analysts alike should exercise caution and conduct their own research before making any investment decisions. While the latest Form 13F filing provides valuable insights, it is important to consider a multitude of factors that may affect the future performance of Compass Diversified and its stock.
In conclusion, William Blair Investment Management LLC has increased its position in Compass Diversified during the first quarter, demonstrating their confidence in the company’s potential for growth. With strong earnings results and a promising outlook for the current fiscal year, Compass Diversified continues to present itself as an appealing investment option with solid long-term prospects.
Updated on: 02/09/2023
Institutional Investors Show Increased Interest in Compass Diversified as Insider Transactions Raise Confidence
Compass Diversified (CODI) has recently witnessed a flurry of activity from institutional investors, as several have been buying and selling shares of the company. Commonwealth Equity Services LLC increased its stake in CODI by 1.1% during the fourth quarter, acquiring an additional 514 shares. This brings their total ownership to 45,433 shares valued at $828,000. Creative Planning also lifted its position in CODI by 3.3% during the second quarter, adding an extra 517 shares to their portfolio. Arizona State Retirement System saw a growth of 3.4% in their holdings during the first quarter, purchasing an additional 614 shares and bringing their total ownership to 18,829 shares worth $359,000.
Furthermore, SPC Financial Inc. increased its position in CODI by 5.3% in the first quarter by acquiring an additional 830 shares. Keeley Teton Advisors LLC raised its stake in CODI by 2.6% during the same period by purchasing an extra 1,000 shares. These moves indicate a significant level of interest and confidence from institutional investors in Compass Diversified.
Meanwhile, StockNews.com recently initiated coverage on CODI with a “hold” rating for the company. Although this rating signifies a neutral outlook on the stock’s performance, it is still noteworthy recognition for Compass Diversified.
In another notable development, Elias Sabo—a company insider—made a substantial purchase of CODI stock on August 7th, where he acquired 5,000 shares at an average price of $22.18 per share. This represents a total transaction value of $110,900. After this purchase, Sabo now directly owns 331,826 shares in Compass Diversified with an estimated value of $7,359,900.
As for CODI’s stock performance on Friday when trading opened at $20.65 per share, it is worth noting that the company has a debt-to-equity ratio of 1.58, indicating its financial leverage. The quick ratio stands at 1.39, while the current ratio is 3.77—a measure of CODI’s ability to meet short-term financial obligations with its existing assets.
Over the past fifty days, the stock has maintained a simple moving average of $21.67 and a two-hundred-day simple moving average of $20.46, implying steady performance within this timeframe. With a market capitalization of $1.48 billion and a beta value of 1.75—which indicates high volatility—Compass Diversified operates within the financial services sector.
Despite witnessing a significant increase in institutional ownership recently—and with insider activity signaling internal confidence—Compass Diversified’s stock seems to be relatively stable, fluctuating between a 52-week low of $16.32 and a 52-week high of $22.91. It remains to be seen how these recent developments will play out for investors moving forward as they evaluate their positions in CODI and determine risk-reward opportunities.
Overall, Compass Diversified continues to attract attention from investors due to its recent activities involving institutional shareholders and insider transactions, making it an interesting stock to watch in the coming months ahead.