WESTPORT, CT – Compass Diversified Holdings (NYSE:CODI), a company specializing in household furniture manufacturing, disclosed in a recent filing that Nancy Mahon, a Director of Compass Group (LON:CPG) Diversified Holdings LLC, the Sponsor of the Trust, has purchased additional shares in the company. The transaction, dated May 28, 2024, involved the acquisition of 7,436 common shares at an average price of $22.41, amounting to a total investment of approximately $166,645.
The recent purchase by Mahon is notable as it increases her holdings in Compass Diversified to a total of 10,523 common shares. The shares were bought in a series of transactions with prices ranging from $22.25 to $22.57. This price range indicates a strategic acquisition of shares, reflecting a weighted average price that underscores the executive's commitment to the company.
Common shares in Compass Diversified represent one undivided beneficial interest in the company's property and correspond to one underlying trust common interest of Compass Group Diversified Holdings LLC held by the Trust.
Investors and the market often look to the buying and selling patterns of company executives as an indicator of the company's financial health and future prospects. The recent purchase by Mahon could be interpreted as a positive signal about the company's direction and potential for growth.
Compass Diversified Holdings, with its headquarters in Westport, Connecticut, has been a known entity in the household furniture industry and continues to operate under the SIC code 2510 for household furniture.
The filing, which was submitted on May 29, 2024, ensures that the public and investors are kept informed about significant changes in the ownership of company insiders. As per the document, full details regarding the number of shares bought at each price point are available upon request to the SEC, the issuer, or any security holder of the issuer.
The transaction was signed off by Nancy Mahon, with attorneys-in-fact Carrie W. Ryan and Ryan J. Faulkingham representing her in the filing process.
InvestingPro Insights
Compass Diversified Holdings (NYSE:CODI) has recently caught the attention of investors not only due to insider trading activity but also because of its financial metrics and performance forecasts. According to InvestingPro data, the company has a market capitalization of approximately $1.65 billion USD, and it's showing signs of revenue growth with a 5.89% increase in the last twelve months as of Q1 2024. The company's gross profit margin stands strong at 44.43%, indicating a solid profitability from its core operations.
One of the InvestingPro Tips for Compass Diversified Holdings is the expectation of net income growth this year, which could be a contributing factor to the recent insider share purchases. Additionally, the company has a history of maintaining dividend payments for 19 consecutive years, with a dividend yield of 4.46% as of the latest data, which might appeal to income-focused investors.
While the company's P/E ratio is currently high at 76.52, analysts predict that Compass Diversified will be profitable this year, which could potentially lead to a more favorable P/E ratio in the future. Moreover, the company's liquid assets exceed its short-term obligations, suggesting financial stability and the ability to meet its immediate liabilities.
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