BellRing Brands (NYSE:BRBR) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded BellRing Brands to “strong sell” from “hold.” However, analyst sentiment remains mixed: 10 analysts rate the stock a buy, seven hold, and two sell, with an average rating of “hold” and a $18.83 price target.
• BellRing shares opened at $8.97, up 3.6%, but remain well below their 12-month high of $34.88. The company recently missed quarterly EPS estimates, reporting $0.30 versus the expected $0.37, despite revenue exceeding forecasts and rising 4.2% year over year.
• Institutional ownership is substantial, with hedge funds and other institutions holding 94.97% of the stock. Recent investors include Diamond Hill Capital Management, River Road Asset Management, and Bank of America.

BellRing Brands (NYSE:BRBR - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Wednesday, Zacks reports.

Several other brokerages have also recently issued reports on BRBR. UBS Group set a $9.50 target price on BellRing Brands in a report on Thursday. DA Davidson increased their price target on BellRing Brands from $13.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. TD Cowen dropped their price target on BellRing Brands from $12.00 to $9.00 and set a "hold" rating for the company in a research note on Tuesday. Barclays raised their price target on BellRing Brands from $13.00 to $14.00 and gave the company an "overweight" rating in a report on Tuesday, July 21st. Finally, Stephens reaffirmed an "overweight" rating and issued a $20.00 price objective on shares of BellRing Brands in a research note on Thursday, July 9th. Ten analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $18.83.

BellRing Brands Stock Up 3.6%

NYSE BRBR opened at $8.97 on Wednesday. BellRing Brands has a twelve month low of $7.33 and a twelve month high of $34.88. The business has a 50-day moving average price of $9.46 and a 200-day moving average price of $11.27. The firm has a market cap of $1.04 billion, a price-to-earnings ratio of 6.56, a price-to-earnings-growth ratio of 4.02 and a beta of 0.43.

BellRing Brands (NYSE:BRBR - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.07). The company had revenue of $570.40 million for the quarter, compared to the consensus estimate of $548.72 million. BellRing Brands had a net margin of 7.28% and a negative return on equity of 33.04%. The company's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.55 EPS. Research analysts expect that BellRing Brands will post 1.03 EPS for the current fiscal year.

Institutional Investors Weigh In On BellRing Brands

Several hedge funds and other institutional investors have recently modified their holdings of the business. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in BellRing Brands in the second quarter worth $42,868,000. Bank of America Corp DE lifted its position in shares of BellRing Brands by 25.0% during the first quarter. Bank of America Corp DE now owns 1,248,761 shares of the company's stock worth $20,093,000 after purchasing an additional 250,144 shares during the last quarter. River Road Asset Management LLC bought a new stake in shares of BellRing Brands during the fourth quarter worth $56,465,000. Wedmont Private Capital purchased a new stake in shares of BellRing Brands during the second quarter valued at $1,593,000. Finally, Y Intercept Hong Kong Ltd boosted its stake in shares of BellRing Brands by 154.6% during the first quarter. Y Intercept Hong Kong Ltd now owns 444,048 shares of the company's stock valued at $7,145,000 after purchasing an additional 269,644 shares during the period. 94.97% of the stock is currently owned by hedge funds and other institutional investors.

About BellRing Brands

BellRing Brands, Inc is a consumer packaged goods company focused on convenient nutrition products. The company develops, markets and sells ready-to-drink protein shakes, protein powders, protein bars and other sports-nutrition products designed for consumers seeking portable sources of protein and nutrition.

BellRing's principal brands include Premier Protein, which offers shakes, powders and bars, and Dymatize, a sports-nutrition brand known for protein powders and related nutritional products.

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