Insider Trading Report: Compass Diversified Holdings (CODI)

Sarah McCoy, an executive at Compass Diversified Holdings (COI), recently picked up 3,164 shares. The buy increased her stake by nearly 15 percent, and came to a total cost of just over $89,000.

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  • This follows on a number of other insider buys over the past two months from a number of company insiders. On the sell side, only a major holder of shares has been selling shares over the past year.

    Overall, company insiders own over 15 percent of shares.

    Shares of the conglomerate, which engages in acquisition and buyout services, is up nearly double the return of the S&P 500 over the past year. Revenues are up 46 percent over the past year, although overall earnings have been flat. The year has been a record one for corporate mergers, a trend likely to continue as long as companies are looking for growth and the costs of making an acquisition remain low.

    Action to take: Shares are likely to continue to benefit given the amount of merger and acquisition activity in the market today. Investors can earn a 5.1 percent dividend yield at today’s prices, in addition to the possibility for more capital gains.

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  • Traders may like the February $30 calls. Last going for about $1.80, they could provide high-double-digit returns in the coming months on a rebound in shares. Traders may want to space out buying contracts amid the recent market volatility.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

     

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