Compass Diversified (NYSE:CODI) to Issue $0.25 Quarterly Dividend

Compass Diversified (NYSE:CODI) announced a quarterly dividend on Tuesday, January 7th,Wall Street Journal reports. Shareholders of record on Thursday, January 16th will be paid a dividend of 0.25 per share by the financial services provider on Thursday, January 23rd. This represents a $1.00 dividend on an annualized basis and a yield of 4.56%. The ex-dividend date is Thursday, January 16th.

Compass Diversified has decreased its dividend payment by an average of 11.5% per year over the last three years. Compass Diversified has a payout ratio of 40.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Compass Diversified to earn $2.19 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 45.7%.

Compass Diversified Stock Performance

Shares of NYSE CODI traded down $0.57 during mid-day trading on Tuesday, hitting $21.91. The company had a trading volume of 205,883 shares, compared to its average volume of 144,839. The stock’s 50-day moving average price is $23.00 and its 200-day moving average price is $22.15. The company has a market capitalization of $1.66 billion, a price-to-earnings ratio of 45.65, a P/E/G ratio of 1.54 and a beta of 1.65. The company has a current ratio of 4.22, a quick ratio of 1.62 and a debt-to-equity ratio of 1.51. Compass Diversified has a 1 year low of $19.76 and a 1 year high of $25.07.

Compass Diversified (NYSE:CODI) last announced its quarterly earnings results on Wednesday, October 30th. The financial services provider reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.10. Compass Diversified had a return on equity of 12.25% and a net margin of 6.24%. The firm had revenue of $582.62 million for the quarter, compared to analysts’ expectations of $571.68 million. During the same period in the prior year, the business posted $0.34 earnings per share. The company’s revenue was up 11.8% on a year-over-year basis. On average, sell-side analysts forecast that Compass Diversified will post 1.96 earnings per share for the current year.

Analyst Ratings Changes

Separately, TD Cowen initiated coverage on Compass Diversified in a research note on Wednesday, November 27th. They set a “buy” rating and a $34.00 price objective for the company.

Insider Transactions at Compass Diversified

In related news, major shareholder Cgi Magyar Holdings Llc sold 135,274 shares of the firm’s stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $23.05, for a total transaction of $3,118,065.70. Following the transaction, the insider now directly owns 7,456,197 shares of the company’s stock, valued at approximately $171,865,340.85. This trade represents a 1.78 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 1.76% of the company’s stock.

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.