The recent performance of Compass Minerals International (NYSE:CMP) has caught the attention of analysts and investors alike. JP Morgan has upgraded the company's rating from Underweight to Neutral, with a significant revision in the average price target to $50.15 per share, nearly doubling from its last close price. This optimistic outlook is further supported by annual revenue projections set for an increase to $1,300 million, marking an approximate growth rate of just under 8%. The expected non-GAAP EPS stands at $1.77.
Institutional interest in Compass Minerals has seen a subtle yet notable rise, with nearly one percent more entities getting involved, totaling over five hundred. Institutional stock ownership has increased by nearly four percent to over forty-two million shares. Despite this moderate uptick in portfolio weightings towards CMP stock holdings, averaging below one-fifth percent, the market sentiment is decidedly bullish. This is reflected in the put/call ratio standing at over two-thirds, indicating optimism among traders.
Among institutional investors adjusting their stakes, VTSMX has marginally raised their ownership in CMP to over three percent. In contrast, Segall Bryant & Hamill and IJR have reduced their investments by near eight and two-thirds percent and nearly seven and one-half percent, respectively. Shapiro Capital Management stands out with a significant boost in their position, increasing both shareholdings and investment focus on CMP by over fifteen percent and seven percent respectively in their financial strategies.
InvestingPro Insights
The upgrade of Compass Minerals International by JP Morgan and the increased institutional interest highlight a pivotal moment for the company. To further understand the financial landscape of CMP, InvestingPro data provides a clearer picture. The company's market capitalization stands at $1.04 billion, and while the P/E ratio is high at 66.18, indicating a premium on earnings, the PEG ratio of 0.44 suggests potential for growth relative to earnings projections. Additionally, the company maintains a robust dividend yield of 2.53%, a testament to its commitment to shareholder returns, having consistently paid dividends for 20 years.
InvestingPro Tips reveal that Compass Minerals is trading at a low P/E ratio relative to near-term earnings growth and analysts predict the company will be profitable this year. These insights are crucial for investors considering the company's future profitability and growth potential. For those looking for more in-depth analysis, the InvestingPro platform offers additional tips to guide investment decisions.
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