Insider Selling: Compass (NYSE:COMP) CEO Sells $274,435.20 in Stock

Compass, Inc. (NYSE:COMP) CEO Robert Reffkin sold 23,456 shares of Compass stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $11.70, for a total transaction of $274,435.20. Following the transaction, the chief executive officer directly owned 7,757,748 shares in the company, valued at $90,765,651.60. This represents a 0.30% decrease in their position. The sale was disclosed in a 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.

Compass Stock Performance

Shares of NYSE COMP opened at $12.58 on Friday. The firm has a fifty day moving average price of $10.80 and a 200-day moving average price of $9.75. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.84 and a quick ratio of 0.84. The stock has a market cap of $9.40 billion, a PE ratio of 209.65 and a beta of 2.36. Compass, Inc. has a 1 year low of $6.37 and a 1 year high of $13.95.

Compass (NYSE:COMP) last released its earnings results on Tuesday, August 4th. The company reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.08 by $0.03. Compass had a net margin of 0.63% and a return on equity of 4.56%. The company had revenue of $4.31 billion for the quarter, compared to analysts’ expectations of $4.11 billion. Equities analysts anticipate that Compass, Inc. will post 0.22 earnings per share for the current fiscal year.

Compass News Summary

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

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $15.00 price objective on shares of Compass in a research note on Wednesday. UBS Group boosted their price target on Compass from $12.00 to $17.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Zacks Research upgraded Compass from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 6th. Morgan Stanley increased their price objective on shares of Compass from $11.00 to $12.50 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Finally, Zelman & Associates reiterated a “neutral” rating and set a $13.50 price objective on shares of Compass in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $14.15.

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.