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Compass, Inc. CEO Robert Reffkin Engages in Notable Stock Sales Amid Company Growth
Robert L. Reffkin, Chairman and CEO of Compass, Inc. (NYSE:COMP), has recently executed substantial stock transactions that have drawn attention from investors and analysts alike. According to data from InvestingPro, the company’s stock has witnessed impressive gains, climbing over 118% in the past year, with a notable increase of 26% in just the last week. On January 15 and 17, Reffkin sold a total of 183,778 shares of Class A Common Stock, which were executed under a Rule 10b5-1 trading plan established on May 10, 2024. The sales brought in approximately $1.18 million.
The selling price for the shares varied between $6.01 and $6.92 each. Following these transactions, Reffkin retains 1,957,283 shares directly and has indirect ownership of an additional 7,828,116 shares through a network of trusts and corporations, as specified in the filing’s footnotes.
These trades not only reflect Reffkin’s strategic reallocation of his holdings but also provide valuable insights into executive trading behaviors within Compass, Inc.
In addition to these transactions, recent reports highlight Compass, Inc.’s strong financial performance. The company exceeded its revenue and adjusted EBITDA guidance midpoint by 8% and an astonishing 230%, respectively. As noted by analysts at Needham, this upward trend is anticipated to persist into 2025, primarily fueled by the growing inclination of real estate agents to join tech-driven brokerages. Moreover, the potential elimination of the Clear Cooperation policy is expected to further enhance Compass’s growth strategy.
Furthermore, Compass has adjusted its financial projections for the fourth quarter of 2024 and the complete year, revealing expectations of stronger performance than previously forecasted. The company anticipates Q4 revenue to fall between $1.36 billion and $1.39 billion, with full-year revenue projected to reach between $5.61 billion and $5.64 billion. Adjusted EBITDA estimates for the fourth quarter range from $15 million to $18 million, while the total for the year is expected to be between $124 million and $127 million.
Moreover, analysts at Oppenheimer have increased their price target for Compass shares from $8.50 to $9.50, while retaining an Outperform rating. This revision follows Compass’s strategic acquisition of Christie’s International, brokerages in the Midwest and Atlanta, along with a Title company, in a move valued at $444 million. Oppenheimer projects that Compass will realize $30 million in cost synergies as a result of this expansion.
In its recent third-quarter earnings report, Compass also detailed a significant year-over-year increase in revenue and transactions. The company’s adjusted EBITDA surged to $52 million, reflecting a remarkable 139% increase compared to the same quarter the previous year. These developments highlight the persistent growth and positive momentum of Compass, Inc. in the real estate technology market.
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