Robert Reffkin, Chairman and CEO of Compass, Inc. (NYSE:COMP), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Reffkin disposed of a total of 222,067 shares of Class A Common Stock over several transactions on November 4, 5, and 6, 2024. The shares were sold at prices ranging from $6.9027 to $6.9226 per share, resulting in a total transaction value of approximately $1.53 million.
Following these sales, Reffkin's direct ownership in Compass stands at 1,777,933 shares. Additionally, he acquired 1,000,000 shares of Class A Common Stock through the conversion of Class C Common Stock, which did not involve any cash transaction.
The transactions were conducted under a prearranged trading plan, as indicated in the filing. This activity is part of Reffkin's ongoing management of his holdings in the company.
In other recent news, Compass Inc. has been making waves with its robust financial performance and strategic advancements. The company reported a significant year-over-year increase in its third-quarter revenue and transactions, with adjusted EBITDA soaring to $52 million, marking a 139% increase from the same quarter the previous year. This growth was attributed to gains in market share and the strong performance of higher-priced real estate assets.
Oppenheimer, an investment firm, has taken a favorable view of these developments, raising its price target for Compass Inc. shares to $8.50 and maintaining an Outperform rating. The firm has adjusted its growth forecasts for Compass Inc., now expecting a 7% increase in fiscal year 2025 and a 15% rise in fiscal year 2026 for existing home sales.
The guidance for fourth-quarter revenue is set at 1% and 2% above Oppenheimer and Wall Street estimates, respectively, with EBITDA guidance at $23 million and $14 million above expectations. The raised EBITDA projections for 2024, 2025, and 2026 are up by 4%, 2%, and 2%, respectively.
In addition to these financial highlights, Compass Inc. is expected to benefit from the introduction of new products in fiscal year 2025, including Reverse Prospecting, the Compass One client dashboard, and the Make-Me-Sell tool. These recent developments underscore the company's ongoing commitment to growth and innovation in the face of market challenges.
InvestingPro Insights
Robert Reffkin's recent sale of Compass, Inc. (NYSE:COMP) shares comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, Compass has delivered a strong return of 212.08% over the last year, with particularly robust gains of 55.29% in the past three months and 90% over the last six months.
Despite these impressive returns, InvestingPro Tips highlight that Compass suffers from weak gross profit margins. This is reflected in the company's gross profit margin of 11.74% for the last twelve months as of Q3 2023. Additionally, analysts do not anticipate the company will be profitable this year, which aligns with the reported operating loss of $133.3 million for the same period.
It's worth noting that Compass is trading at a high Price / Book multiple of 8.2, suggesting investors are placing a premium on the company's assets. This valuation comes despite the fact that Compass is not currently profitable, as indicated by its negative P/E ratio of -24.6.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Compass, providing deeper insights into the company's financial health and market position.
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