Yahoo Finance The Partner & COO of Compass Diversified (NYSE:CODI), Patrick Maciariello, Just Bought 3.5% More Shares
Investors who take an interest in Compass Diversified (NYSE:CODI) should definitely note that the Partner & COO, Patrick Maciariello, recently paid US$18.20 per share to buy US$118k worth of the stock. Although the purchase only increased their holding by 3.5%, it is still a solid purchase in our view.
Check out our latest analysis for Compass Diversified
Compass Diversified Insider Transactions Over The Last Year
In fact, the recent purchase by Partner & COO Patrick Maciariello was not their only acquisition of Compass Diversified shares this year. They previously made an even bigger purchase of US$140k worth of shares at a price of US$23.29 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$19.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Compass Diversified insiders bought shares during the last year, they didn't sell. They paid about US$27.09 on average. This is nice to see since it implies that insiders might see value around current prices. 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. We usually like to see fairly high levels of insider ownership. It appears that Compass Diversified insiders own 2.3% of the company, worth about US$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Compass Diversified Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Compass Diversified we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Compass Diversified you should be aware of, and 1 of these is a bit unpleasant.
But note: Compass Diversified may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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