Should You Buy Compass Diversified Holdings (CODI) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
6.560
1 Day change
2.50%
52 Week Range
21.880
Analysis Updated At
2026/01/28
BUY now for a long-term investor. CODI is trading at $6.40 after a sharp -8.3% drop, while the latest Street targets ($13–$15) imply large upside if operations stabilize. Technicals are still constructive (MACD above zero, RSI not overbought), options positioning is strongly call-skewed (bullish sentiment), and fundamentals in 2025/Q3 show improving profitability trends (loss narrowing sharply).
Intellectia Proprietary Trading Signals
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
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Technical Analysis
Price/Trend: Big single-day selloff (-8.3%) to $6.40, but pre-market shows a small bounce (+1.75%), suggesting dip-buying interest.
Momentum: MACD histogram is positive (0.185) but contracting, implying bullish momentum is fading rather than reversing hard.
RSI: RSI(6) ~62.97 (neutral-to-slightly-bullish), not signaling an overbought extreme.
Moving Averages: Converging MAs suggests a transition phase (neither a clean uptrend nor downtrend confirmation).
Key levels: Pivot support ~5.869 (near-term line to hold). Resistance R1 ~6.754 then R2 ~7.30. A break back above ~6.75 would be a clearer technical recovery signal; a drop below ~5.87 would indicate renewed downside pressure.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment: Extremely call-heavy positioning (OI put/call 0.1; volume put/call 0.03) indicates bullish/speculative sentiment.
Volatility: Very high implied volatility (30D IV ~108.63; IV percentile ~91.2) suggests the market is pricing large moves (high uncertainty, strong sentiment).
Flow/Activity: Today’s options volume is elevated versus average (today vs 30D avg ~28.18), reinforcing that traders are actively positioning now.
Technical Summary
Sell
4
Buy
7
Positive Catalysts
Analyst support/re-rating potential: CJS upgraded to Outperform with a $15 target (2026-01-27), which can help sentiment after a selloff.
Improving profitability trend: 2025/Q3 net loss narrowed significantly YoY (net income up ~94.63% YoY; EPS improved ~96.67% YoY), which supports a longer-term turnaround narrative.
Options sentiment: Strong call-skew can amplify upside if price stabilizes and rebounds.
Neutral/Negative Catalysts
Recent pressure on outlook/targets: B. Riley cut PT to $13 from $18 and kept Neutral (2026-01-21), citing balance sheet management and portfolio reconstruction focus.
Short-term technical risk: MACD positive but contracting plus a sharp down day can lead to follow-through weakness if $5.87 support fails.
No near-term news tailwinds: No notable news catalysts in the past week to quickly reverse sentiment.
Financial Performance
Latest quarter: 2025/Q3.
Revenue: $472.6M, +3.51% YoY (modest top-line growth).
Profitability: Net income remains negative (-$88.9M) but improved strongly YoY (~+94.63%), indicating losses are narrowing.
EPS: -$1.18, improved ~96.67% YoY (still negative, but trending better).
Margins: Gross margin ~39.03%, up ~3.06% YoY, supportive of longer-term earnings recovery if sustained.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Mixed but improving tone at the margin.
- 2026-01-27: CJS Securities upgraded to Outperform, PT $15 (bullish inflection).
- 2026-01-21: B. Riley reiterated Neutral and cut PT to $13 from $18 (more cautious; focus on balance sheet and rebuild).
Wall Street pros: Large implied upside versus current price; improving profitability/margins; upgrade momentum.
Wall Street cons: Balance sheet/capital allocation overhang and portfolio reconstruction; recovery framed as more of a 2026 story by at least one firm.
Influential/political trading: No recent congress trading data available; hedge funds and insiders show neutral recent activity.
Wall Street analysts forecast CODI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CODI is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Analyst Rating
0
Wall Street analysts forecast CODI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CODI is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Buy
Hold
Sell
0
Current: 6.400
Low
0
Averages
0
High
0
0
Current: 6.400
Low
0
Averages
0
High
0
CJS Securities
Market Perform -> Outperform
upgrade
$15
AI Analysis
2026-01-27
New
Reason
CJS Securities
Price Target
$15
AI Analysis
2026-01-27
New
upgrade
Market Perform -> Outperform
Reason
CJS Securities upgraded Compass Diversified to Outperform from Market Perform with a $15 price target.
B. Riley
Neutral
downgrade
$18 -> $13
2026-01-21
Reason
B. Riley
Price Target
$18 -> $13
2026-01-21
downgrade
Neutral
Reason
B. Riley lowered the firm's price target on Compass Diversified to $13 from $18 and keeps a Neutral rating on the shares. The next 6-12 months for Compass Diversified are expected to focus on balance sheet management, capital allocation, and portfolio reconstruction, with 2026 likely shaping up as a recovery year following a noisy 4Q25 impacted by headwinds at Arnold and other expenses, the analyst tells investors in a research note.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CODI
