WESTPORT, CT – Compass Diversified Holdings (NYSE:CODI), a company specializing in household furniture manufacturing, disclosed that Ryan J. Faulkingham, the Chief Financial Officer of the company's sponsor, Compass Group (LON:CPG) Diversified Holdings LLC, has recently increased his stake in the company. According to the latest filings, Faulkingham purchased additional shares of Compass Diversified Holdings on June 13, 2024.
The transaction involved the acquisition of 5,000 common shares at a weighted average price ranging from $22.39 to $22.4599, amounting to a total of $112,186. This purchase reflects Faulkingham's growing investment in the company, where he now holds a total of 33,950 shares directly. Additionally, indirect holdings through an IRA and by his wife account for 1,654 and 787 shares, respectively.
Each common share purchased represents one undivided beneficial interest in Compass Diversified Holdings and corresponds to one underlying trust common interest of Compass Group Diversified Holdings LLC held by the Trust. The price reported is a weighted average, indicating that the shares were bought in multiple transactions within the stated range.
Investors often monitor insider transactions such as these for insights into the confidence levels that executives have in their own companies. Faulkingham's role as CFO and his recent purchase may be seen as a positive signal by the market.
The disclosure was made in accordance with SEC regulations, and full details of the transactions, including the number of shares purchased at each separate price, are available upon request by the SEC staff, the issuer, or any security holder of the issuer.
As of the date of the transaction, Compass Diversified Holdings' business address is 301 Riverside Avenue, Westport, CT, and the company is incorporated in Delaware.
In other recent news, Compass Diversified Holdings has reported robust financial results for the first quarter of 2024, exceeding analyst expectations. The company's consolidated revenue increased by an impressive 8% to $524.3 million, and adjusted EBITDA rose by 28% to $94.8 million. This strong performance was largely driven by growth in the branded consumer sector, with subsidiaries Lugano Diamonds, BOA, and The Honey Pot Company playing significant roles.
Despite a slight dip in the industrial vertical's revenue and adjusted EBITDA, Compass Diversified has raised its full-year adjusted earnings forecast, indicating optimism for the remainder of the year. The company's strategy to focus on innovative and disruptive businesses was further demonstrated by the divestiture of Crosman to Daisy Outdoor Products.
In line with recent developments, Compass Diversified also released its first sustainability report, showcasing its commitment to environmental, social, and governance principles. The company's management has expressed confidence in the M&A market and the potential for strategic acquisitions, further emphasizing their commitment to growth and innovation.
InvestingPro Insights
In light of recent insider buying at Compass Diversified Holdings (NYSE:CODI), investors may find additional context in the company's financial metrics and analyst expectations. According to InvestingPro, CODI's market capitalization stands at $1.69 billion, reflecting a sizable presence in the household furniture manufacturing sector. Despite a trailing twelve months P/E ratio of -6.85, indicating unprofitability during that period, analysts anticipate a turnaround with an expected growth in net income this year. This projection aligns with the CFO's increased stake, potentially signaling confidence in the company's future performance.
Compass Diversified Holdings has also demonstrated a commitment to shareholder returns, maintaining dividend payments for 19 consecutive years, with a current dividend yield of 4.37%. The company's stock price movements have been quite volatile, which may attract investors looking for higher risk-reward opportunities. Notably, the company's liquid assets exceed its short-term obligations, suggesting a solid financial position for managing near-term liabilities.
For investors seeking deeper insights, there are additional InvestingPro Tips available that could shed more light on the investment potential of CODI. In fact, there are 5 more tips listed on InvestingPro that could help investors make a more informed decision. To explore these further and to benefit from the full range of expert analysis, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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