Compass to Snap Up First Alliance Title; Shares Rise 3.1%

Compass (COMP) inked a deal to acquire First Alliance Title LLC that further expands the company’s rapidly-growing portfolio of title and escrow businesses to nine states in the U.S. The financial terms of the deal have been kept under wraps.

Shares of the real estate technology company that empowers residential real estate agents to deliver exceptional services through its end-to-end platform gained 3.1% on September 22 to close at $14.04. (See Compass stock charts on TipRanks)

First Alliance Title is a provider of title services in Colorado and is known for outstanding customer service, with three locations in the Denver area.

The deal marks the third acquisition made by Compass this year. In February, the company acquired title insurance and settlement services company KVS Title based in Washington D.C. Further, in September, it acquired Dallas-based title company LegacyTexas Title.

Pooneet Kant, SVP of New Business at Compass, commented, “Compass firmly believes that agents are, and will continue to be, central to the real estate transaction. For agents to be truly great at their jobs they deserve an end-to-end platform that provides them with complete transparency over the entire process.”

The acquisition is expected to close by the end of 2021, subject to certain regulatory approvals.

Compass Point analyst Christopher Allen recently upgraded the stock from Hold to Buy with a price target of $20 (42.5% upside potential).

Overall, the Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Compass price target of $22.80 implies upside potential of about 62.4% from current levels.

TipRanks data shows that financial blogger opinions are 100% Bullish on COMP, compared to the sector average of 72%.