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Why is Compass Inc (COMP) Stock down?
Compass Inc (COMP) stock fell by 5.08% due to the company's announcement of a proposed settlement to resolve lawsuits over real estate commissions.
- Settlement Details: Compass Inc will pay $57.5 million as part of the proposed settlement. The company has also agreed to change its business practices to ensure clients can more easily understand how brokers and agents are compensated for their services. The changes include:
- Requiring brokerages and agents to clearly disclose to clients that commissions are negotiable and not set by law.
- Requiring agents representing homebuyers to disclose any offer of compensation by the broker representing a seller.
- Ensuring that clients understand that the services of agents who represent homebuyers are not free.
- Market Reaction: The announcement of the settlement and the changes in business practices may have contributed to the decline in Compass Inc's stock price, as investors may view the settlement as a potential financial burden on the company.
Shares of Compass Inc. (COMP) dropped by 7.80% from $2.18 to $2.01 in the trading on Tuesday, November 21. The reason why COMP is down today is due to Deutsche Bank's initiation of coverage on Compass with a Hold rating and the announcement of a price target of $2.70. Deutsche Bank's assessment of Compass might have contributed to investor caution, as it suggests a neutral outlook for the stock. The assigned price target of $2.70 may have led some investors to reassess their positions, potentially leading to selling pressure and the observed stock price decline.
Compass Inc. (COMP) stocks dipped 7.84% to $3.76 on Wednesday as Gordon Haskett changed the prior rating from Buy to Hold.
https://www.tipranks.com/news/real-estate-stocks-plunge-after-analyst-downgrade
Compass, Inc. declined 9.78% to $3.32. Stocks closed lower on Wednesday as traders returned from the July 4 holiday break with renewed worries about potential interest rate increases from the Federal Reserve.
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