Robert L. Reffkin, Chairman and CEO of Compass, Inc. (NYSE:COMP), recently executed two significant stock sales. On November 14, Reffkin sold 245,856 shares of Class A Common Stock at a weighted average price of approximately $6.92 per share. A few days later, on November 18, he sold an additional 496,302 shares at an average price of about $6.18 per share. These transactions, conducted under a pre-established trading plan, amounted to a total value of approximately $4.77 million.
Following these sales, Reffkin still holds 653,444 shares directly. Additionally, he has indirect ownership of 7,828,116 shares through various trusts and investment entities, as detailed in the filing's footnotes.
In other recent news, Compass Inc. has shown robust growth in its third-quarter earnings despite a challenging real estate market. The company reported a significant year-over-year revenue increase and a notable rise in transactions. Compass Inc.'s adjusted EBITDA soared to $52 million, marking a 139% increase from the same quarter the previous year. Oppenheimer recently presented a positive outlook for Compass Inc., increasing the firm's price target to $8.50 from the previous $8.00, reflecting the company's effective cost management and improved EBITDA expectations.
Compass Inc. reported third-quarter transactions that outpaced Oppenheimer's and Wall Street's forecasts. The company's success was attributed to market share gains and the strong performance of higher-priced real estate assets. Looking ahead, Compass Inc. is expected to benefit from product tailwinds, including the introduction of Reverse Prospecting, the Compass One client dashboard, and the Make-Me-Sell tool.
Guidance for fourth-quarter revenue is set slightly above Oppenheimer and Wall Street estimates, with EBITDA guidance exceeding expectations. Oppenheimer has adjusted its growth forecasts for Compass Inc., now expecting a 7% increase in fiscal year 2025 and a 15% rise in fiscal year 2026 for existing home sales. These recent developments suggest a promising future for Compass Inc. in the real estate market.
InvestingPro Insights
Recent stock sales by Compass Inc.'s (NYSE:COMP) CEO Robert L. Reffkin come amid a volatile period for the company's shares. According to InvestingPro data, Compass has experienced a strong return of 161.18% over the last year, with a significant 43.95% price increase in the past six months alone. This upward trend may have influenced the timing of Reffkin's stock sales.
Despite the recent positive performance, InvestingPro Tips highlight that Compass suffers from weak gross profit margins. This is reflected in the company's gross profit margin of 11.74% for the last twelve months as of Q3 2023. Additionally, the company is not profitable over the last twelve months, with an operating income of -$133.3 million during the same period.
On a more optimistic note, analysts predict that Compass will be profitable this year, according to another InvestingPro Tip. This projection aligns with the expectation that net income is set to grow this year, potentially signaling a turnaround for the company's financial performance.
For investors seeking a deeper understanding of Compass's financial health and market position, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
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