Compass Minerals International (CMP) may be on the verge of a takeover. This afternoon, Reuters reported that the mineral and salt mining company is considering selling itself to a private equity firm. The outlet notes that Compass is currently in talks with multiple firms, which suggests that a takeover is likely. After a year of struggling and downward trending share prices, a possible buyout might make sense for the troubled company.
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What’s Happening with Compass Minerals Stock?
News of the potential takeover has sparked some much-needed momentum for Compass Minerals stock. As of this writing, shares are up 23% for the day after a week of little price action other than slight declines. While CMP stock has mostly performed well recently, it is still down almost 40% for the year, leaving it with significant ground to make up and no clear path forward.
According to Reuters‘ sources, Compass has been “working with its investment bankers for several weeks to evaluate acquisition interest from several buyout firms.” Given the year CMP stock has had, it makes sense that a buyout is on the table. The fact that shares surged today on this news suggests that the market is optimistic about the prospect of Compass being taken over by an outside firm.
Compass recently reported earnings for Q3 2024, revealing a net loss of $43.6 million after its net income had reached $36.4 million one year earlier. Due primarily to restructuring charges, that type of loss suggests that the company is facing significant challenges.
Is It Time to Sell Compass Minerals Stock?
In the past three months, CMP stock has received only one Wall Street rating. Since no analysts currently follow the stock, it is hard to properly assess which rating it deserves based on multiple expert opinions. That said, the TipRanks technical analysis tool suggests a Sell signal on the one-day timeframe based on overall bearish sentiment.
