WESTPORT, Conn.— Compass Diversified Holdings (NYSE:CODI) recently reported a significant stock sale by CGI Magyar Holdings LLC. The entity sold 135,274 shares of common stock on November 11, 2024, at a price of $23.05 per share, amounting to a total transaction value of approximately $3.1 million.
CGI Magyar Holdings LLC, a Delaware-based company, is primarily owned by The Stevns Trust, a Bermudian charitable trust. Following the sale, CGI Magyar Holdings retains ownership of 7,456,197 shares. The transaction reflects the ongoing management of holdings by major stakeholders in Compass Diversified Holdings, a company known for its diverse portfolio of middle-market businesses.
In other recent news, Compass Diversified reported a robust third quarter in 2024, with a 25% increase in adjusted EBITDA to $114 million and double-digit growth in combined revenue. The company also raised its full-year 2024 guidance due to its strong performance. The introduction of the CODI Momentum Index reflects a stable economic outlook. Other key developments include a $100 million share repurchase program and over $17 million raised in preferred stock capital.
In terms of segment performance, Compass Diversified's branded consumer segment saw a 10.3% increase in revenue year-to-date, while the industrial segment revenue declined by 4% due to challenges at Altor Solutions. Net income improved significantly to $31.5 million, up from a net loss of $3.8 million in Q3 2023.
With regard to future expectations, analysts anticipate an improved M&A landscape post-2024 election, potential international expansion for Lugano stores, and a flexible capital allocation strategy aiming to reach $1 billion in EBITDA. These recent developments highlight the company's ongoing efforts to maintain growth and achieve its long-term financial goals.
InvestingPro Insights
The recent stock sale by CGI Magyar Holdings LLC comes at a time when Compass Diversified Holdings (NYSE:CODI) is experiencing notable market dynamics. According to InvestingPro data, CODI has shown a strong return over the last three months, with a 15.85% price total return. This performance aligns with the company's 1-year price total return of 31.21%, indicating sustained investor interest.
InvestingPro Tips highlight that CODI has maintained dividend payments for 19 consecutive years, a factor that may contribute to its attractiveness for income-focused investors. The current dividend yield stands at 4.3%, which could be particularly appealing in the current market environment.
Despite the recent stock sale, there are positive indicators for CODI's future performance. An InvestingPro Tip suggests that net income is expected to grow this year, and analysts predict the company will be profitable. This outlook could explain why the stock is trading at 92.82% of its 52-week high, reflecting investor optimism.
It's worth noting that CODI's stock price movements are quite volatile, which may present both opportunities and risks for investors. The company's market cap of $1.76 billion and revenue of $2.22 billion for the last twelve months as of Q3 2024 provide context for its scale within the diversified holdings sector.
For readers interested in a deeper analysis, InvestingPro offers 8 additional tips for CODI, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.