Form 4: CGI Magyar Holdings Sells Shares of Compass Diversified Holdings (CODI) to Cover Short-Swing Profit

CGI Magyar Holdings LLC sold 7,510 shares of Compass Diversified Holdings (CODI) common stock at $24.92 per share to cover profits from a short-swing transaction.

Summary

• CGI Magyar Holdings LLC, a 10% owner of Compass Diversified Holdings (CODI), sold 7,510 shares of common stock on March 8, 2024, at a price of $24.92 per share.
• The sale was triggered by a short-swing profit liability under Section 16(b) of the Securities Exchange Act of 1934.
• This liability arose from a matchable purchase of 7,510 shares on October 4, 2023, at $18.1141 per share.
• CGI Magyar Holdings LLC paid $50,633.04 to the issuer, representing the full profit realized from the short-swing transaction.
• Following the transaction, CGI Magyar Holdings LLC directly owns 7,991,471 shares of CODI.
• CGI Magyar Holdings LLC is owned 99.6% by The Stevns Trust and 0.04% by Anholt Services (USA), Inc.
• The Stevns Trust is a Bermudian charitable trust.
• Path Spirit Limited is the trust protector for The Stevns Trust.

Sentiment

Score: 5

Explanation: Neutral sentiment as the filing relates to a routine regulatory disclosure of a share sale to cover a short-swing profit liability. It doesn't necessarily indicate a positive or negative outlook for the company.

Negatives

• CGI Magyar Holdings LLC had to sell shares to cover a short-swing profit liability, indicating a potential oversight in trading activities.

Risks

• Potential for future short-swing profit liabilities if trading activities are not carefully monitored.

Industry Context

Form 4 filings are a routine part of the regulatory landscape for publicly traded companies, providing transparency into the transactions of company insiders and large shareholders.

Comparison to Industry Standards

• Form 4 filings are standard practice for publicly traded companies and their insiders, ensuring compliance with SEC regulations.
• The short-swing profit rule is a common area of compliance focus for companies and their legal counsel.

Key Dates