Compass (NYSE:COMP) Shares Gap Up Following Better-Than-Expected Earnings

Compass, Inc. (NYSE:COMP)’s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $7.98, but opened at $8.53. Compass shares last traded at $8.88, with a volume of 3,349,878 shares trading hands.

The company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.02. Compass had a negative net margin of 3.70% and a negative return on equity of 49.45%. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same period last year, the firm earned ($0.09) earnings per share.

Analyst Ratings Changes

A number of analysts have commented on COMP shares. The Goldman Sachs Group lifted their price target on Compass from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Wednesday. Oppenheimer lifted their price objective on shares of Compass from $8.50 to $9.50 and gave the company an “outperform” rating in a research note on Tuesday, December 3rd. Needham & Company LLC raised their target price on shares of Compass from $10.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday. UBS Group boosted their target price on shares of Compass from $11.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Barclays increased their price target on Compass from $6.00 to $7.00 and gave the stock an “equal weight” rating in a research report on Wednesday, December 11th. Two research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $8.22.

Insiders Place Their Bets

In other Compass news, major shareholder Excalibur (Cayman) Ltd Svf sold 10,000,000 shares of the stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $6.33, for a total transaction of $63,300,000.00. Following the sale, the insider now directly owns 58,070,273 shares in the company, valued at $367,584,828.09. This represents a 14.69 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Robert L. Reffkin sold 224,510 shares of the firm’s stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $7.90, for a total transaction of $1,773,629.00. Following the completion of the transaction, the chief executive officer now directly owns 1,139,136 shares of the company’s stock, valued at $8,999,174.40. This represents a 16.46 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,728,326 shares of company stock worth $74,520,082 over the last ninety days. Corporate insiders own 6.25% of the company’s stock.

Compass Stock Up 10.9 %

The stock has a 50-day moving average price of $6.64 and a 200 day moving average price of $6.17. The firm has a market capitalization of $4.52 billion, a price-to-earnings ratio of -22.09 and a beta of 2.95.

Compass Company Profile

Compass, Inc provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports.