Compass, Inc. (NYSE:COMP) CEO and Chairman Robert L. Reffkin has recently sold a significant portion of his holdings in the company, according to the latest SEC filings. On August 23 and August 26, Reffkin sold a total of 869,000 shares of Class A Common Stock for over $4.3 million, with individual share prices ranging from $4.9128 to $5.9065.
The sales were executed under a pre-arranged trading plan known as Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The plan was adopted by Reffkin on May 10, 2024. The transactions were carried out in multiple tranches, with prices for the sales on August 23 ranging from $4.90 to $4.96 per share, and the sales on August 26 ranging from $5.90 to $5.915 per share.
In conjunction with these sales, Reffkin also converted Class C Common Stock to Class A Common Stock, amounting to 1,000,000 shares at no cost. This conversion did not affect his overall economic interest in Compass, Inc., as Class C shares are convertible to Class A shares on a one-to-one basis at any time.
Following these transactions, the SEC filing indicated that Reffkin’s direct ownership of Class A Common Stock fell to 944,302 shares. Additionally, the filing disclosed indirect ownership of 7,828,116 shares, which includes holdings by various family trusts and investment corporations associated with Reffkin.
Investors and followers of Compass, Inc. often monitor the buying and selling activity of company insiders like Reffkin for insights into their perspective on the company’s future prospects. The sale of a large block of shares by a top executive can draw significant attention in the investment community.
Compass, Inc., headquartered in New York, NY, operates in the technology sector, providing computer programming services. The company has seen its share of market fluctuations, and insider transactions are just one of many factors that investors consider when assessing the health and future performance of the company.
In other recent news, Compass Inc. delivered a record-breaking Q2 2024 financial performance, with a noteworthy shift to a net income of $20.7 million, a stark contrast from the net loss of $47.8 million in the same quarter the previous year. The company’s revenue surged by 14% year-over-year to $1.7 billion, and its market share expanded to 5.13%. Compass Inc. also made strategic acquisitions, including Latter & Blum and Parks Real Estate, adding over 2,000 principal agents to its roster.
In addition to these developments, Compass Inc. is set to launch title operations in several major markets within the next 18 months, aiming to capture a 30% market share in its top 30 cities by 2026. The company’s robust cash balance of $185.8 million and the absence of draws on its $350 million credit facility underscore its financial health.
The company’s future plans include a nationwide settlement agreement with NAR, expected to receive final approval in late October 2024. Analysts project Q3 revenue to range between $1.425 billion and $1.525 billion, with adjusted EBITDA between $30 million and $50 million. These recent developments highlight Compass Inc.’s growth trajectory and strategic focus on expanding its market share and operational footprint.
InvestingPro Insights
As Compass, Inc. (NYSE:COMP) navigates through market fluctuations, investors are keenly observing the company’s financial health and performance metrics. According to InvestingPro data, Compass boasts a market capitalization of approximately $2.8 billion, reflecting its significant presence in the technology sector. Despite challenges, the company has managed to achieve a revenue growth of 13.83% in the last quarter, signaling potential for expansion and increased market share.
InvestingPro Tips highlight that Compass, Inc. is trading at a low revenue valuation multiple, which suggests that the stock may be undervalued relative to its sales. This could attract investors looking for growth opportunities at a reasonable price. Furthermore, the company has experienced a strong return over the last week, with a 16.88% increase in share price, indicating a positive short-term investor sentiment.
However, not all indicators are positive. The company’s gross profit margin stands at 11.65%, which is a point of concern as it could indicate inefficiencies or competitive pressures affecting profitability. Investors should also note that Compass, Inc. is dealing with volatility, as indicated by a Price / Book ratio of 7.03, which is relatively high and might suggest that the stock price is subject to significant fluctuations.
For those looking to delve deeper into Compass, Inc.’s financials and stock performance, InvestingPro provides additional insights. Currently, there are 20 more InvestingPro Tips available on the platform, offering a comprehensive analysis that could guide investment decisions. As Compass continues to evolve, these insights can be invaluable for understanding the intricate dynamics of the company’s stock.
For further information, including additional InvestingPro Tips, investors can visit https://www.investing.com/pro/COMP.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
