CompoSecure director John Cote purchases $3.86 million in stock

Published 22/02/2025, 02:06
CompoSecure director John Cote purchases $3.86 million in stock

John Cote, a director and significant shareholder of CompoSecure, Inc. (NASDAQ:CMPO), recently acquired a substantial amount of the company’s Class A common stock. According to a recent SEC filing, Cote purchased 233,070 shares on February 20, 2025, with a total transaction value of approximately $3.86 million. The shares were bought at a weighted average price of $16.57, with prices ranging from $16.21 to $16.94. The timing appears strategic, as InvestingPro data shows CMPO has delivered an impressive 251% return over the past year, with the stock trading near its 52-week high of $17.71. Analysts maintain a strong buy consensus with price targets ranging from $14.50 to $23.00.

Following this transaction, Cote’s indirect ownership, through entities such as Tungsten 2024 LLC and Resolute Compo Holdings LLC, totals over 49 million shares. Additionally, he holds 1.5 million shares through Ridge Valley LLC. These transactions underline Cote’s significant stake in CompoSecure, a company specializing in financial services and crypto assets. With a market capitalization of $1.55 billion and a strong current ratio of 2.43, the company shows solid financial health. Want deeper insights into insider trading patterns and comprehensive financial analysis? Access the full InvestingPro Research Report, available for over 1,400 US stocks.

In other recent news, CompoSecure, Inc. announced a significant corporate restructuring with plans to spin off Resolute Holdings Management, Inc. into a separate publicly traded company. This spin-off is expected to occur in the first quarter of 2025, pending customary conditions and approvals, and will involve a pro rata distribution of shares to existing CompoSecure shareholders. Additionally, CompoSecure has issued 3.6 million shares of Class A common stock as part of an earn-out consideration related to a previous business combination. This issuance was triggered by the company’s stock achieving a specific price target, marking a positive milestone for the company.

CompoSecure has also completed the exchange of $130 million in exchangeable notes for shares of its Class A common stock, reducing its long-term debt from $330 million to $200 million. This strategic move aims to streamline the company’s capital structure and improve shareholder value. Furthermore, CompoSecure has eliminated its dual-class share structure, transitioning to a single-class equity structure, as confirmed by a new limited liability company agreement. Investors and stakeholders are closely monitoring these developments as CompoSecure continues to refine its financial strategies and corporate organization.

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