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

Key Points

• Zacks Research downgraded BellRing Brands from “hold” to “strong sell,” adding to a mixed analyst backdrop that currently shows a consensus rating of “Hold” and an average price target of $23.73.
• The stock fell 1.1% and was trading at $10.34, near its 12-month low of $9.22 and well below its 50-day and 200-day moving averages.
• Recent earnings were weak: BellRing missed EPS and revenue estimates for the quarter, reporting $0.14 EPS versus $0.31 expected and $598.7 million in revenue versus $608.9 million expected.

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

BRBR has been the subject of a number of other research reports. DA Davidson reissued a "buy" rating and set a $32.00 price objective on shares of BellRing Brands in a research note on Wednesday, February 4th. Morgan Stanley reissued an "equal weight" rating and set a $13.00 price objective (down from $24.00) on shares of BellRing Brands in a research note on Wednesday. TD Cowen dropped their price objective on BellRing Brands from $17.00 to $11.00 and set a "hold" rating for the company in a research note on Wednesday. BTIG Research began coverage on BellRing Brands in a research note on Monday, April 13th. They set a "neutral" rating for the company. Finally, Jefferies Financial Group dropped their price objective on BellRing Brands from $38.00 to $28.00 and set a "buy" rating for the company in a research note on Monday, March 16th. Nine equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, BellRing Brands presently has an average rating of "Hold" and a consensus target price of $23.73.

BellRing Brands Stock Down 1.1%

NYSE BRBR opened at $10.34 on Thursday. The company has a 50-day simple moving average of $16.33 and a two-hundred day simple moving average of $23.17. BellRing Brands has a 12-month low of $9.22 and a 12-month high of $67.00. The firm has a market cap of $1.21 billion, a price-to-earnings ratio of 8.02, a PEG ratio of 4.76 and a beta of 0.74.

BellRing Brands (NYSE:BRBR - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.17). BellRing Brands had a net margin of 6.78% and a negative return on equity of 44.06%. The business had revenue of $598.70 million for the quarter, compared to analysts' expectations of $608.88 million. During the same quarter in the previous year, the company earned $0.53 earnings per share. The business's quarterly revenue was up 1.8% on a year-over-year basis. Equities analysts expect that BellRing Brands will post 1.32 earnings per share for the current fiscal year.

Insider Buying and Selling at BellRing Brands

In other news, Director David Isaiah Finkelstein bought 2,000 shares of the company's stock in a transaction dated Friday, February 13th. The stock was bought at an average cost of $17.75 per share, for a total transaction of $35,500.00. Following the completion of the acquisition, the director owned 7,391 shares in the company, valued at approximately $131,190.25. This trade represents a 37.10% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 1.50% of the company's stock.

Institutional Trading of BellRing Brands

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Parallel Advisors LLC lifted its stake in BellRing Brands by 52.2% in the first quarter. Parallel Advisors LLC now owns 3,232 shares of the company's stock worth $52,000 after acquiring an additional 1,109 shares during the period. Fifth Third Bancorp lifted its stake in BellRing Brands by 7,817.7% in the first quarter. Fifth Third Bancorp now owns 93,112 shares of the company's stock worth $1,498,000 after acquiring an additional 91,936 shares during the period. Hsbc Holdings PLC lifted its stake in BellRing Brands by 717.7% in the first quarter. Hsbc Holdings PLC now owns 103,330 shares of the company's stock worth $1,665,000 after acquiring an additional 90,693 shares during the period. Counterpoint Mutual Funds LLC lifted its stake in BellRing Brands by 1,483.7% in the first quarter. Counterpoint Mutual Funds LLC now owns 297,279 shares of the company's stock worth $4,783,000 after acquiring an additional 278,508 shares during the period. Finally, New York State Teachers Retirement System lifted its stake in BellRing Brands by 7.6% in the first quarter. New York State Teachers Retirement System now owns 133,944 shares of the company's stock worth $2,155,000 after acquiring an additional 9,405 shares during the period. Hedge funds and other institutional investors own 94.97% of the company's stock.

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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