Robert L. Reffkin, Chairman and CEO of Compass, Inc. (NYSE:COMP), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Reffkin sold 653,444 shares of Class A Common Stock on November 19, 2024. The shares were sold at a weighted average price of $6.2011, resulting in a total transaction value of approximately $4.05 million.
The sales were conducted as part of an automatic trading plan under Rule 10b5-1, which Reffkin adopted on May 10, 2024. Following this transaction, Reffkin holds 7,828,116 shares indirectly through various trusts and investment entities.
In other recent news, Compass Inc. has been in the spotlight with its strong third-quarter performance and positive analyst outlook. The company reported a substantial year-over-year revenue increase, with adjusted EBITDA reaching $52 million, marking a 139% rise from the same quarter in the previous year. The company’s transactions also grew by 16.1%, contributing to its robust growth amidst market challenges.
Oppenheimer, a notable analyst firm, has recently increased its price target for Compass Inc. to $8.50 from the previous $8.00, maintaining an Outperform rating for the stock. The firm cited effective cost management and a significant improvement in second-half EBITDA expectations as reasons for this adjustment. Oppenheimer also expects Compass Inc. to benefit from product tailwinds in the fiscal year 2025, including the introduction of new tools and services.
For the fourth quarter, Compass Inc.’s revenue guidance is set at 1% and 2% above Oppenheimer and Wall Street estimates, respectively, with EBITDA guidance at $23 million and $14 million above expectations. These recent developments reflect Compass Inc.’s resilience in a fluctuating real estate market and its potential for sustained growth.
InvestingPro Insights
In light of Robert L. Reffkin’s recent stock sale, it’s worth examining Compass, Inc.’s current market position and financial health. According to InvestingPro data, Compass has a market capitalization of $3.44 billion, reflecting its significant presence in the real estate management and development industry. The company’s stock has shown remarkable performance, with a one-year price total return of 218.96% as of the latest data, indicating strong investor confidence despite the CEO’s recent share disposal.
InvestingPro Tips highlight that Compass is trading near its 52-week high, with the current price at 96.01% of its peak. This aligns with the stock’s strong returns over the past month (18.07%) and three months (43.5%), suggesting sustained momentum in the company’s market value.
However, investors should note that Compass operates with weak gross profit margins, as pointed out by another InvestingPro Tip. The company’s gross profit margin stands at 11.74% for the last twelve months, which may be a concern for long-term profitability. Despite this, analysts expect net income to grow this year, potentially signaling a turnaround in the company’s financial performance.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for Compass, providing a deeper understanding of the company’s financial health and market position. These insights can be particularly valuable in contextualizing executive stock transactions and assessing the company’s future prospects.
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