BellRing Brands (NYSE:BRBR) Board Approves Stock Repurchase Program

Key Points

• BellRing Brands has approved a stock repurchase program to buy back up to $400 million of its outstanding shares, which represents about 7.7% of its stock, reflecting the board's belief that the stock is undervalued.
• Analysts have mixed ratings for BellRing Brands, with Truist Financial and UBS Group lowering their price targets to $40, while JPMorgan Chase maintains an "overweight" rating with a price target of $52.
• For its latest quarter, BellRing Brands reported $0.55 earnings per share, exceeding expectations, with revenues reaching $547.5 million, a 6.2% increase year-over-year.

BellRing Brands (NYSE:BRBR - Get Free Report) declared that its board has approved a stock buyback plan on Tuesday, September 2nd, RTT News reports. The company plans to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 7.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms recently commented on BRBR. Truist Financial decreased their price target on shares of BellRing Brands from $60.00 to $40.00 and set a "hold" rating on the stock in a research note on Wednesday, August 6th. Citigroup decreased their price target on shares of BellRing Brands from $90.00 to $80.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. JPMorgan Chase & Co. began coverage on shares of BellRing Brands in a research note on Wednesday, August 20th. They issued an "overweight" rating and a $52.00 price target on the stock. UBS Group decreased their price target on shares of BellRing Brands from $63.00 to $40.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Finally, Morgan Stanley reduced their price objective on shares of BellRing Brands from $78.00 to $58.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 6th. Thirteen investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, BellRing Brands has a consensus rating of "Moderate Buy" and a consensus price target of $64.80.

BellRing Brands Stock Performance

Shares of BRBR traded up $0.61 during mid-day trading on Tuesday, reaching $41.66. The company had a trading volume of 3,970,832 shares, compared to its average volume of 4,488,151. The company's 50 day simple moving average is $49.51 and its 200 day simple moving average is $62.08. BellRing Brands has a 1-year low of $34.02 and a 1-year high of $80.67. The company has a market capitalization of $5.25 billion, a price-to-earnings ratio of 23.81, a P/E/G ratio of 2.00 and a beta of 0.74.

BellRing Brands (NYSE:BRBR - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The company reported $0.55 earnings per share for the quarter, beating analysts' consensus estimates of $0.49 by $0.06. BellRing Brands had a net margin of 10.26% and a negative return on equity of 123.43%. The company had revenue of $547.50 million for the quarter, compared to the consensus estimate of $530.76 million. During the same period last year, the company posted $0.54 EPS. The firm's quarterly revenue was up 6.2% compared to the same quarter last year. BellRing Brands has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that BellRing Brands will post 2.23 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Darcy Horn Davenport sold 1,600 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $54.18, for a total value of $86,688.00. Following the sale, the chief executive officer directly owned 193,978 shares in the company, valued at approximately $10,509,728.04. This trade represents a 0.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Shawn Conway bought 1,316 shares of the business's stock in a transaction that occurred on Thursday, August 14th. The shares were acquired at an average price of $49,999.99 per share, for a total transaction of $65,799,986.84. Following the completion of the transaction, the director owned 8,001 shares in the company, valued at $400,049,919.99. This trade represents a 19.69% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 6,616 shares of company stock worth $65,995,248 and have sold 12,800 shares worth $735,568. 1.07% of the stock is currently owned by corporate insiders.

About BellRing Brands

BellRing Brands, Inc, together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels.

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