BellRing Brands (NYSE:BRBR) Hits New 1-Year Low - Here's Why

Key Points

• BellRing Brands' stock has reached a new 52-week low of $33.52, with analysts adjusting their price targets significantly lower, reflecting changing market perceptions.
• The company initiated a $400 million share repurchase plan, indicating confidence from its leadership in the stock's undervaluation.
• Insider trading activity has shown mixed signals, with a notable purchase by an insider offset by stock sales from the CEO, reflecting differing perspectives on the company's future.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report)'s stock price reached a new 52-week low on Monday . The stock traded as low as $33.52 and last traded at $33.65, with a volume of 158377 shares trading hands. The stock had previously closed at $34.13.

Analyst Ratings Changes

A number of brokerages have recently commented on BRBR. JPMorgan Chase & Co. lowered their price target on shares of BellRing Brands from $52.00 to $45.00 and set an "overweight" rating for the company in a report on Thursday. Jefferies Financial Group lifted their price target on shares of BellRing Brands from $80.00 to $82.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Zacks Research downgraded shares of BellRing Brands from a "hold" rating to a "strong sell" rating in a report on Wednesday, October 1st. UBS Group decreased their target price on shares of BellRing Brands from $40.00 to $39.00 and set a "neutral" rating on the stock in a research report on Wednesday. Finally, Mizuho decreased their target price on shares of BellRing Brands from $75.00 to $45.00 and set an "outperform" rating on the stock in a research report on Monday, August 18th. Thirteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $64.27.

BellRing Brands Stock Down 1.1%

The company has a market cap of $4.25 billion, a PE ratio of 19.30, a price-to-earnings-growth ratio of 1.67 and a beta of 0.75. The business's 50 day moving average price is $38.24 and its 200-day moving average price is $55.22.

BellRing Brands (NYSE:BRBR - Get Free Report) last posted its quarterly earnings data on Monday, February 28th. The company reported $0.22 earnings per share (EPS) for the quarter. The company had revenue of $282.40 million for the quarter. BellRing Brands had a net margin of 10.26% and a negative return on equity of 123.43%. Equities analysts expect that BellRing Brands Inc. will post 2.23 earnings per share for the current year.

BellRing Brands announced that its board has initiated a share repurchase plan on Tuesday, September 2nd that permits the company to buyback $400.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 7.7% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Craig L. Rosenthal purchased 2,600 shares of the company's stock in a transaction that occurred on Wednesday, August 6th. The stock was acquired at an average price of $37.29 per share, for a total transaction of $96,954.00. Following the completion of the purchase, the insider owned 33,475 shares in the company, valued at approximately $1,248,282.75. This represents a 8.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Darcy Horn Davenport sold 1,600 shares of BellRing Brands stock in a transaction on Friday, August 1st. The stock was sold at an average price of $54.18, for a total transaction of $86,688.00. Following the completion of the sale, the chief executive officer owned 193,978 shares of the company's stock, valued at approximately $10,509,728.04. This trade represents a 0.82% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders purchased 6,616 shares of company stock worth $65,995,248 and sold 4,800 shares worth $266,096. Insiders own 1.07% of the company's stock.

Institutional Trading of BellRing Brands

Several institutional investors have recently added to or reduced their stakes in BRBR. Xponance Inc. increased its holdings in shares of BellRing Brands by 0.9% in the 1st quarter. Xponance Inc. now owns 15,221 shares of the company's stock valued at $1,133,000 after purchasing an additional 142 shares during the period. Argonautica Private Wealth Management Inc. increased its holdings in shares of BellRing Brands by 2.5% in the 1st quarter. Argonautica Private Wealth Management Inc. now owns 6,416 shares of the company's stock valued at $478,000 after purchasing an additional 157 shares during the period. McIlrath & Eck LLC increased its holdings in shares of BellRing Brands by 13.6% in the 1st quarter. McIlrath & Eck LLC now owns 1,413 shares of the company's stock valued at $105,000 after purchasing an additional 169 shares during the period. Stephens Inc. AR increased its holdings in shares of BellRing Brands by 5.0% in the 1st quarter. Stephens Inc. AR now owns 3,705 shares of the company's stock valued at $276,000 after purchasing an additional 175 shares during the period. Finally, TCTC Holdings LLC increased its holdings in shares of BellRing Brands by 87.6% in the 1st quarter. TCTC Holdings LLC now owns 407 shares of the company's stock valued at $30,000 after purchasing an additional 190 shares during the period. Institutional investors own 94.97% of the company's stock.

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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