Zelman & Associates Reiterates Neutral Rating for Compass (NYSE:COMP)

Compass (NYSE:COMP)‘s stock had its “neutral” rating reaffirmed by equities research analysts at Zelman & Associates in a report issued on Thursday,Benzinga reports. They currently have a $13.50 price objective on the stock. Zelman & Associates’ price objective would suggest a potential upside of 7.32% from the company’s current price.

Several other equities research analysts also recently issued reports on COMP. Zacks Research upgraded shares of Compass from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 6th. Barclays upped their target price on Compass from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Wednesday. Oppenheimer lifted their price target on Compass from $15.00 to $18.00 and gave the stock an “outperform” rating in a report on Wednesday. UBS Group boosted their price target on Compass from $12.00 to $17.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Morgan Stanley upped their price objective on Compass from $11.00 to $12.50 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.15.

Compass Trading Down 0.0%

Compass stock opened at $12.58 on Thursday. Compass has a 52 week low of $6.37 and a 52 week high of $13.95. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $9.40 billion, a P/E ratio of 209.65 and a beta of 2.36. The stock has a 50-day simple moving average of $10.80 and a 200 day simple moving average of $9.75.

Compass (NYSE:COMP) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.03. Compass had a return on equity of 4.56% and a net margin of 0.63%.The firm had revenue of $4.31 billion for the quarter, compared to analyst estimates of $4.11 billion. Analysts expect that Compass will post 0.22 earnings per share for the current year.

Insider Buying and Selling

In other Compass news, CEO Robert L. Reffkin sold 23,456 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $11.70, for a total transaction of $274,435.20. Following the transaction, the chief executive officer owned 7,757,748 shares in the company, valued at $90,765,651.60. This trade represents a 0.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 70,368 shares of company stock worth $748,246. 2.85% of the stock is owned by company insiders.

Compass News Roundup

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Analysts see additional upside: Wells Fargo raised its price target to $13 from $12 while maintaining an equal-weight rating. Goldman Sachs also increased its target to $12 from $10.50. Zelman & Associates reaffirmed a neutral rating but set a $13.50 target, implying potential upside from recent levels. Wells Fargo Compass analyst update
• Positive Sentiment: Better-than-expected earnings support the stock: Compass reported quarterly revenue of $4.31 billion versus the $4.11 billion consensus estimate and adjusted earnings of $0.11 per share versus expectations of $0.08. Record net income, strong cash flow and faster-than-planned cost synergies reinforce the company’s profitability improvement story. Compass second-quarter results
• Neutral Sentiment: Analyst sentiment remains mixed: Zelman’s neutral rating contrasts with buy and outperform ratings from several other firms. The average analyst target is approximately $14.21, but the high valuation and limited profitability leave investors sensitive to execution and housing-market conditions. Zelman neutral rating
• Neutral Sentiment: CEO insider sale was limited: CEO Robert Reffkin sold 23,456 shares for about $274,000 under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by only 0.30%, making it a relatively weak bearish signal. Compass SEC insider filing
• Negative Sentiment: Private-listings controversy is the key overhang: Sen. Elizabeth Warren questioned Compass’s partnership with Chicago’s MRED private-listing network, arguing that the arrangement could increase risks of civil-rights violations and discriminatory access to housing. The criticism adds regulatory, reputational and potential legal risk while a congressional inquiry remains active. Compass defended the strategy as beneficial to consumers and agents, but the controversy may limit near-term upside. Senator Warren questions Compass private listings deal

Compass Company Profile

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.