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Potential Compass Diversified (NYSE:CODI) shareholders may wish to note that the Partner & COO, Patrick Maciariello, recently bought US$202k worth of stock, paying US$20.21 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.2%.
See our latest analysis for Compass Diversified
Compass Diversified Insider Transactions Over The Last Year
Notably, that recent purchase by Patrick Maciariello is the biggest insider purchase of Compass Diversified shares that we've seen in the last year. That means that even when the share price was higher than US$20.05 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Compass Diversified Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Compass Diversified insiders own about US$35m worth of shares. That equates to 2.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Compass Diversified Insiders?
It is good to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest Compass Diversified insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Compass Diversified has 1 warning sign we think you should be aware of.