Compass, Inc. (NYSE:COMP) Chairman and CEO Robert L. Rifkin recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Rifkin sold 653,444 shares of Class A common stock on November 19, 2024. These shares were sold at a weighted average price of $6.2011, resulting in an aggregate transaction value of approximately $4.05 million. .
The sales were made as part of an automated trading plan under Rule 10b5-1, which Rifkin adopted on May 10, 2024. Following this transaction, Rifkin indirectly owns 7,828,116 shares through various trusts and investment entities.
In other recent news, Compass Inc. has been in the spotlight with its strong third-quarter performance and positive analyst outlook. The company reported substantial year-over-year revenue growth, with adjusted EBITDA reaching $52 million, a 139% increase over the same quarter last year. The company’s transactions also grew by 16.1 percent, contributing to its strong growth amid market challenges.
Notable analyst firm Oppenheimer recently raised their price target on Compass Inc. to $8.50, maintaining an Outperform rating on the stock. The firm cited effective cost management and a significant improvement in second-half EBITDA expectations as reasons for the adjustment. Oppenheimer expects Compass Inc. to benefit from product tailwinds in fiscal 2025, including the introduction of new tools and services.
For the fourth quarter, Compass Inc. Revenue guidance is set 1% and 2% above Oppenheimer and Wall Street estimates, respectively, with EBITDA guidance beating expectations of $23 million and $14 million. These recent developments reflect Compass Inc.’s resilience in the volatile real estate market and its potential for sustainable growth.
InvestingPro Insights
In light of Robert L. Rifkin’s recent stock sale, it’s worth reviewing Compass Inc.’s current market position and financial health. According to data from InvestingPro, Compass has a market capitalization of $3.44 billion, reflecting its significant presence in the real estate management and development industry. The company’s stock has performed well, with a one-year total price return of 218.96% as of the latest data, indicating strong investor confidence despite the CEO’s recent share disposals. .
InvestingPro Tips highlights that Compass is trading near its 52-week high, with the current price at 96.01% of its peak. This is consistent with the stock’s strong returns over the past month (18.07%) and three months (43.5%), suggesting continued momentum in the company’s market value.
However, investors should note that Compass operates with weak gross profit margins, as another InvestingPro tip points out. The company’s gross profit margin stands at 11.74% for trailing twelve months, which may be a concern for long-term profitability. Even so, analysts expect net income to rise this year, possibly signaling a turnaround in the company’s financial performance.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for Compass, which provides a deeper understanding of a company’s financial health and market position. This insight can be particularly valuable in contextualizing executive stock transactions and evaluating a company’s future prospects.
This article was produced in collaboration with AI and was reviewed by an editor. See our T&C for more information.
