Compass Diversified (NYSE:CODI) Declares $0.25 Quarterly Dividend

Compass Diversified (NYSE:CODI) declared a quarterly dividend on Tuesday, July 2nd, Wall Street Journal reports. Stockholders of record on Thursday, July 18th will be given a dividend of 0.25 per share by the financial services provider on Thursday, July 25th. This represents a $1.00 annualized dividend and a dividend yield of 4.58%. The ex-dividend date of this dividend is Thursday, July 18th.

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 41.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect Compass Diversified to earn $2.18 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 45.9%.

Compass Diversified Price Performance

NYSE CODI traded up $0.03 during trading hours on Wednesday, hitting $21.84. 96,848 shares of the company’s stock traded hands, compared to its average volume of 203,643. The company has a debt-to-equity ratio of 1.43, a current ratio of 4.08 and a quick ratio of 1.64. The firm’s 50-day moving average is $22.18 and its 200-day moving average is $22.60. Compass Diversified has a 52-week low of $16.88 and a 52-week high of $25.07. The company has a market capitalization of $1.65 billion, a PE ratio of 128.60, a PEG ratio of 1.51 and a beta of 1.68.

Compass Diversified (NYSE:CODI) last posted its quarterly earnings results on Wednesday, May 1st. The financial services provider reported $0.40 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.01). Compass Diversified had a net margin of 4.61% and a return on equity of 11.71%. The company had revenue of $524.29 million during the quarter, compared to analyst estimates of $540.20 million. Equities analysts forecast that Compass Diversified will post 1.89 EPS for the current fiscal year.

Insiders Place Their Bets

In other Compass Diversified news, insider Ryan J. Faulkingham purchased 5,000 shares of the business’s stock in a transaction on Thursday, June 13th. The shares were bought at an average cost of $22.44 per share, for a total transaction of $112,200.00. Following the completion of the purchase, the insider now directly owns 33,950 shares in the company, valued at $761,838. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider Larry L. Enterline purchased 8,212 shares of the business’s stock in a transaction that occurred on Tuesday, May 28th. The shares were purchased at an average cost of $22.41 per share, for a total transaction of $184,030.92. Following the purchase, the insider now directly owns 32,886 shares of the company’s stock, valued at $736,975.26. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Ryan J. Faulkingham acquired 5,000 shares of the firm’s stock in a transaction on Thursday, June 13th. The stock was bought at an average price of $22.44 per share, with a total value of $112,200.00. Following the purchase, the insider now directly owns 33,950 shares of the company’s stock, valued at $761,838. The disclosure for this purchase can be found here. 1.76% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms have weighed in on CODI. William Blair reiterated an “outperform” rating on shares of Compass Diversified in a report on Thursday, May 2nd. Oppenheimer upped their price objective on Compass Diversified from $21.00 to $23.00 and gave the company a “market perform” rating in a report on Tuesday, March 5th. Finally, Bank of America raised their target price on Compass Diversified from $27.00 to $30.00 and gave the stock a “buy” rating in a research note on Thursday, March 7th.

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.