Stock News in Focus: Compass Diversified Holdings (NYSE: CODI)

Compass Diversified Holdings (NYSE: CODI) stock identified change of 64.91% away from 52-week low price and recently located move of -0.62% off 52-week high price. It has market worth of $1145.89M and dividend yield of 7.53%. CODI stock has been recorded 10.11% away from 50 day moving average and 18.89% away from 200 day moving average. Moving closer, we can see that shares have been trading 2.43% off 20-day moving average.

Compass Diversified Holdings (NYSE: CODI), an owner of leading middle market businesses, announced that it has completed the sale of its majority owned subsidiary, CEHI Acquisition Corporation, the parent company of Clean Earth, Inc. (“Clean Earth”), to a wholly-owned subsidiary of Harsco Corporation (NYSE: HSC), pursuant to an agreement it entered into on May 8, 2019.

The sale price of Clean Earth was based on an aggregate enterprise value of $625 million plus estimated cash and working capital adjustments subject to customary post-closing true-ups. CODI expects to realize a gain on the sale of Clean Earth of between $205 million and $215 million and intends to use the net proceeds to repay the remaining outstanding debt under the Company’s revolving credit facility and for general corporate purposes.

Moelis & Company LLC and Houlihan Lokey Capital, Inc. acted as financial advisors to CODI in connection with the transaction. Squire Patton Boggs (US) LLP acted as legal counsel to CODI.

In addition, CODI’s Manager, Compass Group Management, has agreed to waive the management fee on cash balances held at CODI, commencing with the management fee due for the quarter ending June 30, 2019 and continuing until the quarter during which the Company next borrows under its revolving credit facility.

Elias Sabo, CEO of Compass Diversified Holdings, stated, “Year to date 2019, CODI has realized gains for shareholders of over $325 million. This success has enabled the Company to significantly strengthen its balance sheet, during a time when we are waiving our management fee on CODI’s cash balance. We remain well positioned to continue to implement our permanent capital model, and to distribute $1.44 per share annually, as we focus on further enhancing shareholder value.”

The Conglomerates sector company, Compass Diversified Holdings LLC noticed change of 0.10% to $19.13 along volume of 122534 shares in recent session compared to an average volume of 223.47K. The stock observed return of 2.08% in 5 days trading activity. The stock was at 13.94% over one month performance. CODI’s shares are at 19.49% for the quarter and driving a 10.58% return over the course of the past year and is now at 53.65% since this point in 2018.

The average volatility for the week at 1.36% and for month was at 2.21%. There are 59.9M shares outstanding and 49.38M shares are floated in market.

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