Compass Diversified appoints new CFO

Published 26/08/2024, 11:52
Compass Diversified appoints new CFO

WESTPORT, Conn. - Compass Diversified (NYSE: CODI), an owner of leading middle market businesses, has announced the appointment of Stephen Keller as the company's new Chief Financial Officer, effective August 31, 2024. Keller will succeed Ryan Faulkingham, who is stepping down on August 30, 2024, after more than a decade of service. Faulkingham will continue to advise the company to ensure a smooth transition.

Keller brings over 25 years of executive finance experience across various industries, including automotive, healthcare, and media. Before joining Compass Diversified, he served as Interim CFO and Vice President of Investor Relations at Envista Holdings Corporation (NYSE: NYSE:NVST), and held multiple senior roles at Avery Dennison Corporation (NYSE: NYSE:AVY).

Elias Sabo, CEO of Compass Diversified, expressed confidence in Keller's ability to lead the company's financial strategy and contribute to its growth, citing his proven track record and leadership style.

Keller's appointment comes as Compass Diversified continues to leverage its permanent capital base and long-term disciplined approach to value creation. The company has been known for maintaining controlling ownership interests in its subsidiaries, which has been instrumental in generating strong returns and fostering a culture of transparency and accountability.

The information for this report is based on a press release statement.

In other recent news, Avery Dennison Corporation has reported robust second-quarter performance, surpassing earnings expectations with an earnings per share (EPS) of $2.42. As a result, the company has raised its full-year earnings guidance to a range of $9.30 to $9.50 per share, targeting about 20% growth over the previous year. However, the company anticipates a mid-single-digit percentage decline in Q3 EPS due to historical seasonal volume drops. Despite these challenges, Avery Dennison expects record revenue in Q4 and targets over 20% volume growth in intelligent labels for the year.

Investor sentiment towards Avery Dennison has been influenced by analyst ratings. Truist Securities maintained a Buy rating on Avery Dennison, with a steady stock price target of $258.00, expressing confidence in the company's growth trajectory. On the other hand, UBS downgraded Avery Dennison from a "Buy" to a "Neutral" rating, citing concerns over slower than expected growth in the company's radio-frequency identification (RFID) segment. BMO Capital Markets also adjusted its outlook on Avery Dennison, reducing its price target on the stock to $254 from the previous $256, while maintaining an Outperform rating.

These recent developments underscore Avery Dennison's ongoing efforts to maintain strong growth and adapt to market conditions. More insight into Avery Dennison's long-term strategies will be provided during the company's Investor Day in September.

InvestingPro Insights

Stephen Keller's tenure at Avery Dennison Corporation (NYSE: AVY) is particularly noteworthy as he joins Compass Diversified as the new Chief Financial Officer. With Avery Dennison's strong financial performance in the past, Keller's experience there may offer valuable insights into his potential impact at Compass Diversified. Avery Dennison's commitment to shareholder returns is evident, with the company having raised its dividend for 13 consecutive years, demonstrating a stable financial policy that Keller has been a part of.

InvestingPro data shows Avery Dennison with a market capitalization of $17.64 billion and a Price/Earnings (P/E) ratio of 27.91, suggesting a relatively high valuation in the market. The company's Price/Book ratio, as of the last twelve months ending in Q2 2024, stands at 7.71, further indicating a premium valuation. Despite analysts revising their earnings downwards for the upcoming period, Avery Dennison has maintained dividend payments for an impressive 54 consecutive years, which could be a sign of the company's resilience and commitment to shareholders.

InvestingPro Tips for Avery Dennison highlight that while the stock is trading near its 52-week high, it is also trading at a high P/E ratio relative to near-term earnings growth, which could be a point of consideration for investors looking at the company's future prospects. Moreover, with 5 analysts having revised their earnings downwards and the stock trading at a high Price/Book multiple, potential investors should weigh these factors carefully.

For those interested in further analysis and additional InvestingPro Tips, Avery Dennison currently has 11 more tips available at https://www.investing.com/pro/AVY, which could provide deeper insights into the company's financial health and future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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