Black Rock Coffee Bar (NASDAQ:BRCB) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Black Rock Coffee Bar to “strong sell” from “hold,” adding to mixed analyst sentiment. The stock has an overall consensus rating of “hold” and an average price target of $11.50.
• Shares traded at $8.07, near their 50-day moving average and well below the 52-week high of $26.48. Morgan Stanley also cut its target from $22 to $9, while other analysts’ targets range from $10 to $13.
• The company recently missed quarterly earnings expectations, reporting $0.06 in EPS versus the $0.07 consensus estimate. Black Rock Coffee Bar posted $63 million in revenue, a 0.69% net margin and a 1.46% return on equity.

Black Rock Coffee Bar (NASDAQ:BRCB - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Thursday, Zacks reports.

Several other analysts have also recently commented on BRCB. Raymond James Financial set a $13.00 price target on Black Rock Coffee Bar in a research report on Wednesday, August 12th. DA Davidson decreased their price objective on Black Rock Coffee Bar from $15.00 to $10.00 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Robert W. Baird reaffirmed a "neutral" rating and set a $10.00 target price (down from $12.00) on shares of Black Rock Coffee Bar in a research note on Monday, August 24th. Weiss Ratings raised shares of Black Rock Coffee Bar from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, October 2nd. Finally, Morgan Stanley lowered shares of Black Rock Coffee Bar from an "overweight" rating to an "equal weight" rating and dropped their target price for the stock from $22.00 to $9.00 in a report on Wednesday, July 15th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Black Rock Coffee Bar presently has an average rating of "Hold" and a consensus price target of $11.50.

Black Rock Coffee Bar Price Performance

Shares of BRCB traded down $0.20 during mid-day trading on Thursday, hitting $8.07. 539,290 shares of the company were exchanged, compared to its average volume of 286,790. Black Rock Coffee Bar has a 1-year low of $6.11 and a 1-year high of $26.48. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.62 and a current ratio of 0.71. The company has a 50 day moving average of $8.03 and a 200-day moving average of $8.91. The stock has a market cap of $404.06 million and a price-to-earnings ratio of 115.30.

Black Rock Coffee Bar (NASDAQ:BRCB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.06 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.01). Black Rock Coffee Bar had a return on equity of 1.46% and a net margin of 0.69%. The firm had revenue of $63.00 million for the quarter. Analysts expect that Black Rock Coffee Bar will post 0.20 EPS for the current fiscal year.

Institutional Investors Weigh In On Black Rock Coffee Bar

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE increased its stake in shares of Black Rock Coffee Bar by 1.9% in the 1st quarter. Bank of America Corp DE now owns 143,896 shares of the company's stock worth $1,859,000 after acquiring an additional 2,631 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Black Rock Coffee Bar by 106.7% in the first quarter. PNC Financial Services Group Inc. now owns 8,219 shares of the company's stock valued at $106,000 after purchasing an additional 4,243 shares during the period. BlueCrest Capital Management Ltd acquired a new stake in shares of Black Rock Coffee Bar during the 2nd quarter worth approximately $166,000. Sei Investments Co. increased its holdings in shares of Black Rock Coffee Bar by 58.2% during the 1st quarter. Sei Investments Co. now owns 62,607 shares of the company's stock worth $809,000 after buying an additional 23,040 shares during the last quarter. Finally, Alkeme Wealth LLC purchased a new stake in shares of Black Rock Coffee Bar during the 3rd quarter valued at approximately $214,000.

Black Rock Coffee Bar Company Profile

Black Rock Coffee Bar, Inc operates a chain of specialty coffee shops under the Black Rock Coffee Bar brand. The company primarily serves beverages through drive-thru and café locations, with a menu that includes coffee, espresso-based drinks, teas, blended beverages, energy drinks and other specialty refreshments.

In addition to beverages, Black Rock Coffee Bar offers food and snack items such as breakfast selections, pastries and other grab-and-go products. Its locations are designed to provide convenient service for customers seeking handcrafted drinks and light food options.

Founded in 2008, the company was established by Jeff Hernandez and Daniel Brand and is headquartered in Portland, Oregon.

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