Compass, Inc. (NYSE:COMP) CEO Robert Reffkin has sold a significant portion of his holdings in the company, according to the latest filings with the Securities and Exchange Commission. The transactions, which took place over two consecutive days, amounted to a total of $5,594,257 in Class A Common Stock.
On the first day, Reffkin sold 705,083 shares at a weighted average price of $5.9242, with individual transactions ranging from $5.90 to $5.9799 per share. The following day, he continued by selling the remaining 239,219 shares at an average price of $5.9243, with prices ranging between $5.90 and $5.99 per share. These sales were executed under a pre-arranged Rule 10b5-1 trading plan, which was adopted on May 10, 2024.
After the transactions, the filings showed that Reffkin no longer held any direct ownership in Class A Common Stock. However, the CEO still has an indirect interest in 7,828,116 shares through various family trusts and investment corporations, as detailed in the footnotes of the SEC filing.
These sales are part of a systematic plan and are automatically executed according to predetermined criteria. Investors often monitor such insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects.
For those interested in the specifics of Reffkin's remaining indirect holdings, the SEC filing provides a breakout of the shares owned by different entities, including the 2021 Reffkin Remainder Interest Trust and the Reffkin Investment II Corp, among others.
Compass, Inc., headquartered in New York, operates within the technology sector, providing services related to computer programming. The company has undergone a name change from its former identity, Urban Compass, Inc., and continues to grow its presence in the real estate technology industry.
In other recent news, Compass Inc. announced record-breaking financial results for Q2 2024. The company reported a net income of $20.7 million, a significant turnaround from the net loss of $47.8 million in the same quarter the previous year. Revenue climbed by 14% year-over-year to $1.7 billion, with organic growth contributing 9%. The company's transactions increased by 11.4%, surpassing the market's 3.3% decline, and market share grew to 5.13%.
Compass Inc. also made strategic acquisitions, adding over 2,000 principal agents from Latter & Blum and Parks Real Estate, and hired 543 principal agents organically. The company's adjusted EBITDA more than doubled to $77.4 million, and operating expenses were reduced by $20.9 million from Q2 2023.
Looking forward, Compass Inc. plans to launch title operations in several major markets and aims for a 30% market share in its top 30 cities by 2026. The company forecasts Q3 revenue between $1.425 billion and $1.525 billion, and adjusted EBITDA between $30 million and $50 million. These are recent developments that highlight the company's growth trajectory and strategic moves in the industry.
InvestingPro Insights
Amid the news of Compass, Inc. (NYSE:COMP) CEO Robert Reffkin's stock sale, investors are keen to understand the company's financial health and market position. According to InvestingPro data, Compass, Inc. currently holds a market capitalization of $2.99 billion. The company's revenue growth over the last twelve months as of Q2 2024 stands at 2.7%, with a more robust quarterly revenue growth of 13.83% in Q2 2024, signaling potential in its operational expansion.
Despite these positive growth figures, Compass is grappling with profitability challenges. The company's P/E Ratio is negative at -12.08, reflecting investor concerns about its earnings outlook. Moreover, the company's gross profit margin is relatively low at 11.65%, which aligns with one of the InvestingPro Tips that highlights Compass's weak gross profit margins.
Investors are also looking at the company's stock performance with great interest. Compass's stock has shown a significant return over the last week, with a price total return of 13.45%. This short-term uptick is part of a larger pattern, as the stock has experienced a high return over the last year of 78.81%, currently trading at its 52-week high.
For those considering Compass as a potential investment, there are additional InvestingPro Tips to explore. Currently, there are 21 more tips available on InvestingPro, which provide deeper insights into the company's financial metrics and market behavior. These tips can help investors make more informed decisions by considering factors such as valuation multiples, debt levels, and the company's competitive standing in the real estate management and development industry.
To delve deeper into Compass, Inc.'s financials and to access the full list of InvestingPro Tips, interested parties can visit: https://www.investing.com/pro/COMP.
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