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Compass Diversified’s Third Forbearance Agreement Announced

Story Highlights
  • Compass Diversified Holdings manages a portfolio of niche industrial and branded consumer businesses.
  • The company entered a Third Forbearance Agreement due to financial irregularities at Lugano Holding, Inc.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Compass Diversified’s Third Forbearance Agreement Announced

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Compass Diversified Holdings ( (CODI) ) has issued an update.

Compass Diversified Holdings announced a series of forbearance agreements due to financial irregularities discovered in its subsidiary, Lugano Holding, Inc., impacting its financial statements for 2024. The company has entered into a Third Forbearance Agreement with its lenders to delay exercising rights related to these defaults until November 24, 2025, while it works on restating its financials and negotiating waivers, which, if unsuccessful, could adversely affect its business and financial condition.

The most recent analyst rating on (CODI) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

Spark’s Take on CODI Stock

According to Spark, TipRanks’ AI Analyst, CODI is a Neutral.

The overall stock score of 60 reflects the company’s strong gross profitability and high dividend yield, offset by challenges such as high leverage, negative cash flows, and a negative P/E ratio. Technical indicators show mixed signals, with short-term bullish momentum but a bearish long-term trend.

To see Spark’s full report on CODI stock, click here.

More about Compass Diversified Holdings

Compass Diversified Holdings LLC, along with its trust, operates in the diversified holdings industry, focusing on managing a portfolio of niche industrial and branded consumer businesses.

Average Trading Volume: 937,483

Technical Sentiment Signal: Sell

Current Market Cap: $492M

See more data about CODI stock on TipRanks’ Stock Analysis page.

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