Robert L. Reffkin, Chairman and CEO of Compass, Inc. (NYSE:COMP), recently sold a substantial amount of the company's Class A common stock, according to a recent SEC filing. On November 7 and November 11, Reffkin sold a total of 382,331 shares, generating approximately $2.64 million. The sales were executed at weighted average prices ranging from $6.9071 to $6.9117 per share.
These transactions were conducted as part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to sell a predetermined number of shares at a predetermined time. Following these sales, Reffkin directly owns 1,395,602 shares of Compass, Inc. Additionally, he holds an indirect interest in 7,828,116 shares through various trusts and investment entities.
In other recent news, Compass Inc. has demonstrated robust financial performance despite a challenging real estate market. The company reported a significant year-over-year revenue increase in its third quarter, with adjusted EBITDA soaring to $52 million, marking a 139% increase from the same quarter the previous year. Transactions also saw a notable rise, up by 16.1% year-over-year.
Oppenheimer recently presented a positive outlook for Compass Inc., increasing the firm's price target to $8.50 from the previous $8.00, while reiterating an Outperform rating for the stock. This change reflects Compass Inc.'s effective cost management and a significant improvement in second-half EBITDA expectations. Oppenheimer also 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.
Looking ahead, Compass Inc. is expected to benefit from several product tailwinds in fiscal year 2025, including the introduction of Reverse Prospecting, the Compass One client dashboard, and the Make-Me-Sell tool. The guidance for fourth-quarter revenue is set at 1% and 2% above Oppenheimer and Wall Street estimates, with EBITDA guidance at $23 million and $14 million above expectations. These recent developments highlight the company's strong operating leverage and positive growth trajectory.
InvestingPro Insights
Robert L. Reffkin's recent stock sale comes at a time when Compass, Inc. (NYSE:COMP) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown a remarkable 243.59% price total return over the past year, with a strong 54.02% return in just the last three months. This upward trend is further emphasized by the stock trading near its 52-week high, with the current price at 95.58% of that peak.
Despite the impressive stock performance, Compass faces some financial challenges. InvestingPro Tips highlight that the company suffers from weak gross profit margins, which is reflected in the latest data showing a gross profit margin of 11.74% for the last twelve months as of Q3 2023. Additionally, Compass is not profitable over the last twelve months, with an operating income margin of -2.49%.
However, there are positive signals for investors to consider. An InvestingPro Tip indicates that net income is expected to grow this year, and analysts predict the company will be profitable this year. This optimism is balanced against the company's current valuation, with Compass trading at a high Price / Book multiple of 7.99.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Compass, providing a more comprehensive view of the company's financial health and market position. These insights can be particularly valuable given the company's volatile stock price movements and its status as a prominent player in the Real Estate Management & Development industry.
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