CompoSecure, Inc. (NASDAQ:CMPO), a $1.5 billion market cap company, recently witnessed significant insider buying activity, according to a recent filing. Tungsten 2024 LLC and Resolute Compo Holdings LLC, both key investors in the company, purchased a combined total of 646,893 shares of Class A Common Stock. The transactions, which occurred between February 12 and February 14, amounted to approximately $9.99 million. According to InvestingPro data, the stock has delivered an impressive 217% return over the past year.
The shares were acquired at prices ranging from $15.01 to $15.83 per share, close to the current trading price of $15.64. These purchases indicate a continued interest and confidence in CompoSecure by its major stakeholders. The buying activity was executed in multiple transactions, with the prices reflecting weighted averages within specified ranges. InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value, with analyst price targets ranging from $14.50 to $23.00.
Tungsten 2024 LLC and Resolute Compo Holdings LLC, through their relationship with John Cote, play a pivotal role in the governance of CompoSecure, as they are considered directors by deputization. The transactions were reported under indirect ownership, with both entities disclaiming beneficial ownership except to the extent of their pecuniary interest. The company maintains a GREAT financial health score of 3.14 on InvestingPro, which offers comprehensive insider trading analysis and financial health metrics in its Pro Research Report.
In other recent news, CompoSecure, Inc. has been making strategic moves aimed at restructuring its operations and financials. The company plans to spin off a new entity, Resolute Holdings Management, Inc., following an amendment to its credit agreement. This spin-off is expected to be completed in the first quarter of 2025, subjecting existing CompoSecure shareholders to a pro rata distribution of shares in Resolute Holdings.
In addition, CompoSecure has issued 3.6 million shares of Class A common stock as part of an earn-out consideration related to a business combination completed in late 2021. The company also exchanged all its $130 million 7.00% Exchangeable Notes due 2026 for shares of its Class A common stock, reducing its long-term debt from $330 million to $200 million.
In a separate move, CompoSecure entered into a third amended and restated limited liability company agreement for its subsidiary, CompoSecure Holdings, L.L.C., effectively eliminating the company's dual-class structure. These recent developments are part of CompoSecure's broader efforts to streamline its operations and focus on its core business segments.
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