Compass Diversified Holdings CFO acquires $99.7k in shares

Compass Diversified Holdings (NYSE:CODI) CFO Ryan J. Faulkingham has recently invested in the company, purchasing shares worth approximately $99,725. The transaction, which took place on April 2, 2024, involved the acquisition of 4,250 common shares at a weighted average price of $23.4648 per share. This price range was between $23.45 and $23.49, as detailed in the recent SEC filing.

The purchase by Faulkingham has increased his direct ownership in Compass Diversified Holdings to 28,950 shares. In addition to his direct holdings, the filing also noted indirect ownership through an IRA totaling 1,654 shares and 787 shares owned by his wife.

The recent transaction underscores the CFO's commitment to the company, which is known for its holdings in the household furniture sector. Compass Diversified Holdings operates as a trust, with each common share representing one undivided beneficial interest in the company's property and corresponding to one underlying trust common interest of Compass Group (LON:CPG) Diversified Holdings LLC held by the Trust. It's worth noting that Faulkingham is the Chief Financial Officer of Compass Group Diversified Holdings LLC, the sponsor of the Trust.

Investors often monitor insider transactions such as these as they may provide insights into the executive's confidence in the company's future performance. The details of the transaction, including the number of shares purchased at each separate price, are available upon request by the SEC staff, the issuer, or any security holder of the issuer.

Following CFO Ryan J. Faulkingham's recent investment in Compass Diversified Holdings, it's important to consider the company's financial health and market performance to understand the potential implications of his purchase. Compass Diversified Holdings has shown a notable price uptick over the last six months, with a 33.76% price total return, reflecting a strong positive trend. This aligns with an InvestingPro Tip that highlights a large price uptick in the same period, which could signal growing investor confidence in the company's prospects.

Moreover, Compass Diversified Holdings has maintained dividend payments for 19 consecutive years, a testament to its commitment to providing shareholder value, and boasts a dividend yield of 4.23% as of the latest data. This consistency in dividends, coupled with the company's ability to exceed short-term obligations with its liquid assets, as noted in another InvestingPro Tip, provides investors with a sense of security regarding the company's financial stability.

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The company's P/E ratio stands at 9.6, which may suggest a potentially undervalued stock relative to its earnings, especially when considering that net income is expected to grow this year. This expected growth in net income, combined with the CFO's recent share purchase, could be perceived as a positive indicator for the company's financial trajectory.

For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 9 more tips available at InvestingPro , which can be accessed with an exclusive offer. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain comprehensive insights into Compass Diversified Holdings' performance and potential investment opportunities.

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