Compass Diversified Holdings (CODI) Stock AnalysisCODICompass Diversified Holdings

Compass Diversified Holdings is engaged in owning and managing a diverse set of defensible, middle-market businesses across the branded consumer, industrial, healthcare, and critical outsourced services sectors. The Company categorizes its businesses into two separate groups: branded consumer businesses and industrial businesses. It operates through eight segments: 5.11 Acquisition Corp. (5.11), Boa Holdings Inc. (BOA), Relentless Topco, Inc. (PrimaLoft), THP Topco, Inc. (The Honey Pot Co. or THP), CBCP Products, LLC (Velocity Outdoor or Velocity), AMTAC Holdings, LLC (Arnold), FFI Compass, Inc. (Altor Solutions or Altor). 5.11 is a provider of purpose-built technical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. PrimaLoft is a provider of branded, high-performance synthetic insulation and materials used primarily in consumer outerwear, and accessories. It operates in the Financials sector (HOUSEHOLD FURNITURE industry).

Currently, Compass Diversified Holdings (CODI) is trading at $10.01, which is significantly below the analyst price targets of $15 and $18. However, the stock has a very low RSI of 16.242, indicating it is oversold, but the recent 5-day change of -7.74% raises concerns about short-term performance. The company reported a strong Q2 with a net income of $64.5 million, suggesting potential for recovery, but the risk remains high due to a negative net margin of -7.22% in Q1 2026. Given these factors, it may be wise to hold off on buying until there are clearer signs of stability and recovery.

7 analysts cover CODI: 6 rate it Buy, 1 Hold and 0 Sell. The average price target is 14.00.