CompoSecure, Inc. (NASDAQ: CMPO) achieved a new 52-week high on August 21, 2023, with shares climbing to $24.66 before closing at $25.47. The notable surge followed a trading volume of 113,635 shares, a significant increase from its previous closing price of $19.86. This upward momentum has prompted analysts to reevaluate their ratings on the stock.
Analyst opinions have varied significantly in recent reports. On August 22, TD Cowen raised its target price for CompoSecure shares from $22.00 to $26.00, issuing a “buy” rating. Conversely, JPMorgan Chase & Co. maintained an “underweight” rating with a target price of $16.00, reflecting a more cautious outlook. Meanwhile, Lake Street Capital increased its target from $21.00 to $25.00, also assigning a “buy” rating. Notably, Benchmark has set a new price objective of $32.00, while Needham & Company LLC adjusted its target from $22.00 to $25.00, both affirming a “buy” stance.
Overall, six analysts currently rate CompoSecure as a “buy,” while one has issued a “sell” rating. According to data from MarketBeat, the consensus rating is categorized as a “Moderate Buy,” with a price target averaging around $24.50.
Insider Transactions Raise Questions
Recent insider trading activity has also captured attention. On August 12, 2023, Timothy Walter Fitzsimmons, the Chief Financial Officer, sold 100,000 shares at an average price of $18.74, totaling approximately $1.87 million. Following this transaction, Fitzsimmons retains 759,789 shares valued at around $14.24 million, marking an 11.63% decrease in his holdings.
Similarly, Gregoire Maes, the Chief Operating Officer, sold 97,226 shares on August 14, 2023, at an average price of $19.36, amounting to a total of $1.88 million. After the sale, Maes holds 779,062 shares, valued at about $15.08 million, reflecting an 11.10% reduction in his ownership. In total, insiders have sold 217,125 shares over the past 90 days, valued at approximately $4.14 million, with insiders retaining 52.10% of the company’s stock.
Institutional Investors Increasing Stakes
Institutional investors have also made significant adjustments to their holdings in CompoSecure. Locust Wood Capital Advisers LLC increased its stake by 60.3% in the first quarter, owning 7,339,015 shares valued at $79.78 million after acquiring an additional 2,759,872 shares. Additionally, Corsair Capital Management L.P. purchased a new position valued at approximately $19.90 million during the same quarter.
Furthermore, Thrivent Financial for Lutherans entered a new investment during the third quarter worth about $34.37 million, while Vanguard Group Inc. raised its holdings by 65.7%, now owning 2,337,323 shares valued at $25.41 million. Jupiter Asset Management Ltd. also increased its stake by 319.0%, now holding 570,633 shares valued at $8.04 million. Currently, institutional investors control 37.56% of CompoSecure’s stock.
CompoSecure, Inc. specializes in the design and manufacture of financial transaction cards, including metal and composite options. The company also offers the Arculus Cold Storage Wallet, enhancing security for digital assets such as Bitcoin and Ethereum.
As the market reacts to these developments, investors are closely monitoring the performance of CompoSecure amid fluctuating analyst ratings and insider activities.
