BellRing Brands Inc. (NYSE:BRBR) Sees Large Increase in Short Interest

Key Points

• Short interest jumped 21% in March to 8,810,425 shares as of March 31 (about 7.6% of shares short) with a days-to-cover ratio of 2.0 based on average daily volume.
• BellRing beat Q results — $0.37 EPS vs. $0.31 expected and $537.3M revenue vs. $505.4M — but revenue rose just 0.8% year-over-year and the company shows a negative return on equity of 64.79%; shares trade near $16.26 versus a 52-week high of $79.57.
• Director David Finkelstein bought 2,000 shares (insiders own 1.5% while institutions own ~94.97%), and analysts hold a consensus "Moderate Buy" with an average price target of $35.88.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report) was the target of a significant increase in short interest in the month of March. As of March 31st, there was short interest totaling 8,810,425 shares, an increase of 21.0% from the March 15th total of 7,280,581 shares. Based on an average daily volume of 4,387,277 shares, the days-to-cover ratio is presently 2.0 days. Approximately 7.6% of the shares of the stock are short sold.

BellRing Brands Trading Up 1.9%

BRBR opened at $16.26 on Friday. The firm has a market capitalization of $1.91 billion, a PE ratio of 11.21, a PEG ratio of 5.13 and a beta of 0.73. BellRing Brands has a twelve month low of $14.19 and a twelve month high of $79.57. The firm's 50-day moving average price is $17.11 and its 200 day moving average price is $25.09.

BellRing Brands (NYSE:BRBR - Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The company reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.06. The firm had revenue of $537.30 million for the quarter, compared to analyst estimates of $505.44 million. BellRing Brands had a net margin of 7.88% and a negative return on equity of 64.79%. BellRing Brands's quarterly revenue was up .8% on a year-over-year basis. During the same period in the previous year, the business posted $0.58 earnings per share. As a group, analysts predict that BellRing Brands will post 2.23 earnings per share for the current fiscal year.

Insider Activity

In related news, Director David Isaiah Finkelstein bought 2,000 shares of the company's stock in a transaction dated Friday, February 13th. The shares were acquired at an average price of $17.75 per share, for a total transaction of $35,500.00. Following the completion of the transaction, the director directly owned 7,391 shares in the company, valued at $131,190.25. This trade represents a 37.10% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On BellRing Brands

A number of institutional investors and hedge funds have recently bought and sold shares of BRBR. Northwestern Mutual Wealth Management Co. boosted its holdings in BellRing Brands by 42.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,248 shares of the company's stock valued at $72,000 after purchasing an additional 373 shares during the last quarter. Farther Finance Advisors LLC boosted its holdings in BellRing Brands by 132.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 735 shares of the company's stock valued at $27,000 after purchasing an additional 419 shares during the last quarter. Treasurer of the State of North Carolina boosted its holdings in BellRing Brands by 0.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 59,286 shares of the company's stock valued at $3,434,000 after purchasing an additional 456 shares during the last quarter. Tower Research Capital LLC TRC boosted its holdings in BellRing Brands by 9.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,318 shares of the company's stock valued at $308,000 after purchasing an additional 467 shares during the last quarter. Finally, Larson Financial Group LLC boosted its holdings in BellRing Brands by 128.7% in the 4th quarter. Larson Financial Group LLC now owns 931 shares of the company's stock valued at $25,000 after purchasing an additional 524 shares during the last quarter. 94.97% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on BRBR shares. BTIG Research started coverage on shares of BellRing Brands in a research report on Monday. They issued a "neutral" rating on the stock. Stifel Nicolaus dropped their target price on shares of BellRing Brands from $50.00 to $34.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. TD Cowen reiterated a "hold" rating on shares of BellRing Brands in a research report on Thursday, January 8th. Barclays dropped their target price on shares of BellRing Brands from $27.00 to $22.00 and set an "overweight" rating on the stock in a research report on Tuesday. Finally, Mizuho dropped their target price on shares of BellRing Brands from $40.00 to $34.00 and set an "outperform" rating on the stock in a research report on Thursday, March 5th. Twelve equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, BellRing Brands presently has a consensus rating of "Moderate Buy" and a consensus price target of $35.88.

About BellRing Brands

BellRing Brands, Inc is a consumer packaged goods company specializing in high‐protein, better‐for‐you nutrition products. Formed in March 2020 as a spin‐off from Post Holdings, the company focuses on delivering convenient protein solutions to health‐conscious consumers through a portfolio of well‐known and emerging brands.

The company's product offerings include ready‐to‐drink protein shakes, protein powders, nutrition bars and other performance nutrition items. BellRing Brands' flagship brands include Premier Protein, a line of shakes and bars designed for everyday protein supplementation, as well as Dymatize and PowerBar, which cater to athletes and active individuals seeking advanced sports nutrition formulas.

BellRing Brands markets its products primarily across North America, leveraging relationships with major retailers, wholesale clubs and e-commerce platforms to reach consumers in the United States and Canada.

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