BellRing Brands (NYSE:BRBR) Reaches New 1-Year Low Following Weak Earnings

Key Points

• BellRing's shares hit a new 52-week low after a quarterly EPS miss (reported $0.14 vs. $0.31 expected) and revenue of $598.7M versus $608.9M estimated, with the stock trading as low as $11.85 (prior close $17.36).
• Several analysts cut price targets (e.g., JPMorgan to $21, Jefferies to $28) though the consensus remains a Moderate Buy with an average target of $33.88 and a street split of 12 Buys, 7 Holds and 1 Sell.
• Key fundamentals show a negative return on equity (-64.79%) but a low P/E of 6.67 and $1.09B market cap; institutional investors own ~94.97% of the stock and an insider recently bought 2,000 shares.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $11.85 and last traded at $11.1180, with a volume of 730133 shares changing hands. The stock had previously closed at $17.36.

The company reported $0.14 EPS for the quarter, missing analysts' consensus estimates of $0.31 by ($0.17). BellRing Brands had a net margin of 7.88% and a negative return on equity of 64.79%. The business had revenue of $598.70 million during the quarter, compared to analyst estimates of $608.88 million. During the same quarter in the prior year, the company posted $0.53 earnings per share. The company's revenue was up 1.8% on a year-over-year basis.

Analysts Set New Price Targets

Several brokerages recently issued reports on BRBR. JPMorgan Chase & Co. reduced their price objective on shares of BellRing Brands from $28.00 to $21.00 and set an "overweight" rating on the stock in a report on Wednesday, April 22nd. TD Cowen restated a "hold" rating on shares of BellRing Brands in a report on Monday, April 20th. Jefferies Financial Group lowered their price objective on shares of BellRing Brands from $38.00 to $28.00 and set a "buy" rating for the company in a research report on Monday, March 16th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $31.00 target price on shares of BellRing Brands in a report on Monday, January 26th. Finally, Stifel Nicolaus cut their target price on BellRing Brands from $50.00 to $34.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. Twelve investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, BellRing Brands presently has an average rating of "Moderate Buy" and a consensus target price of $33.88.

Insider Activity at BellRing Brands

In other BellRing Brands news, Director David Isaiah Finkelstein acquired 2,000 shares of the stock in a transaction dated Friday, February 13th. The stock was acquired at an average price of $17.75 per share, with a total value of $35,500.00. Following the completion of the purchase, the director owned 7,391 shares in the company, valued at $131,190.25. This trade represents a 37.10% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On BellRing Brands

A number of hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC boosted its position in BellRing Brands by 86.9% in the 4th quarter. AQR Capital Management LLC now owns 7,006,847 shares of the company's stock valued at $187,013,000 after buying an additional 3,258,035 shares during the period. Wasatch Advisors LP increased its position in shares of BellRing Brands by 30.5% during the third quarter. Wasatch Advisors LP now owns 6,750,018 shares of the company's stock worth $245,363,000 after acquiring an additional 1,575,812 shares during the period. Capital Research Global Investors acquired a new stake in shares of BellRing Brands in the third quarter valued at $172,312,000. The Manufacturers Life Insurance Company boosted its holdings in BellRing Brands by 156.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 3,830,164 shares of the company's stock valued at $102,380,000 after purchasing an additional 2,336,029 shares during the period. Finally, Wellington Management Group LLP raised its position in BellRing Brands by 0.5% in the 3rd quarter. Wellington Management Group LLP now owns 3,691,528 shares of the company's stock valued at $134,187,000 after purchasing an additional 19,471 shares in the last quarter. 94.97% of the stock is currently owned by institutional investors and hedge funds.

BellRing Brands Stock Performance

The business has a 50-day simple moving average of $16.79 and a 200-day simple moving average of $23.65. The company has a market cap of $1.09 billion, a price-to-earnings ratio of 6.67, a price-to-earnings-growth ratio of 5.57 and a beta of 0.74.

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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