Robert L. Rifkin, Chairman and CEO of Compass, Inc. (NYSE:COMP), recently made significant stock sales according to a recent filing. The company's stock showed remarkable momentum, rising by more than 118% in the past year and 26% in the past week alone, according to InvestingPro Data. On January 15 and 17, Rifkin sold a total of 183,778 shares of Class A common stock. The sales were made under a Rule 10b5-1 trading plan approved on May 10, 2024, and generated approximately $1.18 million. With analyst price targets ranging between $5.50 and $10.00, and profitability expectations this year, these insider trades are worth paying attention to. For deeper insights into insider trading patterns and comprehensive analysis, see the detailed Pro Research report available at InvestingPro.
The shares were sold at prices ranging from $6.01 to $6.92 per share. Following these transactions, Reffkin will directly own 1,957,283 shares. In addition, he has indirect ownership of 7,828,116 shares through various funds and companies, as described in the footnotes to the filing.
These transactions reflect Rifkin's ongoing adjustments to his holdings in the company, providing investors with insights into executive trading activities at Compass, Inc.
In other recent news, Compass Inc. announced reported strong financial performance, exceeding its revenue and adjusted EBITDA guidance midpoint by 8% and 230%, respectively. This positive trend, Needham analysts noted, is expected to continue through 2025, driven largely by an increasing number of real estate agents gravitating toward technology-enabled brokerages. The potential removal of the explicit collaboration policy could enhance Compass's growth strategy.
Compass also revised its financial forecasts for the fourth quarter of 2024 and the full year, indicating stronger performance than initially expected. The company expects fourth-quarter revenues to range between $1.36 billion and $1.39 billion, and revenues for the full year to reach between $5.61 billion and $5.64 billion. Adjusted EBITDA for the fourth quarter is expected to be between $15 million and $18 million, and for the full year, it is expected to be between $124 million and $127 million.
Analysts from Oppenheimer raised their price target on Compass shares to $9.50, from the previous price of $8.50, while maintaining an Outperform rating for the company. This reshuffle follows Compass's strategic acquisition of Christie's International, Midwest and Atlanta brokerages, and Title, in a deal valued at $444 million. Oppenheimer expects Compass to generate $30 million in cost savings over time.
Finally, Compass reported a significant year-over-year revenue increase and a transaction increase in third-quarter earnings. The company's adjusted EBITDA rose to $52 million, representing a 139% increase from the same quarter a year earlier. These latest developments underscore Compass Inc.'s continued momentum and growth trajectory. In the real estate technology sector.
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