Yahoo Finance Independent Chairman Larry Enterline Just Bought 52% More Shares In Compass Diversified (NYSE:CODI)
Investors who take an interest in Compass Diversified (NYSE:CODI) should definitely note that the Independent Chairman, Larry Enterline, recently paid US$19.13 per share to buy US$121k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 52%.
View our latest analysis for Compass Diversified
Compass Diversified Insider Transactions Over The Last Year
The Partner & COO Patrick Maciariello made the biggest insider purchase in the last 12 months. That single transaction was for US$140k worth of shares at a price of US$23.29 each. That means that an insider was happy to buy shares at above the current price of US$19.31. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Compass Diversified insiders were buying shares, but not selling. They paid about US$19.51 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Compass Diversified is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Compass Diversified Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.3% of Compass Diversified shares, worth about US$32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Compass Diversified Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Compass Diversified shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Compass Diversified. For example, Compass Diversified has 3 warning signs (and 1 which is a bit concerning) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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