BellRing Brands (NYSE:BRBR) Reaches New 1-Year Low - Here's What Happened

Key Points

• BellRing Brands (NYSE:BRBR) shares hit a new 52-week low of $33.84, reflecting a decline of 3.2% in stock value as analysts adjust their ratings, with some predicting a price target decrease.
• Despite the downturn, BellRing reported a quarterly earnings per share (EPS) of $0.55, surpassing expectations and showing a year-over-year revenue increase of 6.2%.
• The company has also initiated a $400 million share buyback plan, indicating that its board believes the stock is undervalued, and institutional investors hold nearly 95% of the company's shares.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report) shares hit a new 52-week low on Monday . The company traded as low as $33.84 and last traded at $33.86, with a volume of 2363788 shares traded. The stock had previously closed at $34.99.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on BRBR. Zacks Research cut BellRing Brands from a "hold" rating to a "strong sell" rating in a report on Wednesday, October 1st. Stephens raised BellRing Brands from an "equal weight" rating to an "overweight" rating and decreased their price objective for the company from $68.00 to $50.00 in a research note on Wednesday, August 6th. Weiss Ratings reissued a "hold (c)" rating on shares of BellRing Brands in a research note on Saturday, September 27th. 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. Finally, Barclays lowered their price target on shares of BellRing Brands from $75.00 to $50.00 and set an "overweight" rating for the company in a report on Thursday, August 7th. Thirteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, BellRing Brands presently has a consensus rating of "Moderate Buy" and an average price target of $64.80.

BellRing Brands Stock Down 3.2%

The company has a 50 day simple moving average of $39.84 and a 200 day simple moving average of $56.31. The company has a market capitalization of $4.27 billion, a price-to-earnings ratio of 19.35, a price-to-earnings-growth ratio of 1.62 and a beta of 0.75.

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

BellRing Brands declared that its Board of Directors has approved a share repurchase plan on Tuesday, September 2nd that allows the company to buyback $400.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 7.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its shares are undervalued.

Insider Activity at BellRing Brands

In other news, insider Craig L. Rosenthal bought 2,600 shares of the firm's stock in a transaction on Wednesday, August 6th. The stock was bought at an average cost of $37.29 per share, for a total transaction of $96,954.00. Following the completion of the acquisition, the insider directly owned 33,475 shares in the company, valued at $1,248,282.75. This represents a 8.42% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Shawn Conway bought 2,700 shares of BellRing Brands stock in a transaction dated Wednesday, August 6th. The stock was acquired at an average price of $36.41 per share, with a total value of $98,307.00. Following the acquisition, the director directly owned 6,685 shares of the company's stock, valued at approximately $243,400.85. This represents a 67.75% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders have purchased 6,616 shares of company stock worth $65,995,248 and have sold 6,400 shares worth $358,352. Company insiders own 1.07% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Holocene Advisors LP increased its holdings in shares of BellRing Brands by 50.7% during the 2nd quarter. Holocene Advisors LP now owns 3,928,395 shares of the company's stock valued at $227,572,000 after acquiring an additional 1,320,849 shares during the last quarter. Axiom Investors LLC DE raised its stake in shares of BellRing Brands by 418.1% in the 1st quarter. Axiom Investors LLC DE now owns 2,248,924 shares of the company's stock valued at $167,455,000 after buying an additional 1,814,811 shares in the last quarter. William Blair Investment Management LLC bought a new position in shares of BellRing Brands during the 2nd quarter worth approximately $124,777,000. Assenagon Asset Management S.A. lifted its holdings in BellRing Brands by 77.4% during the 1st quarter. Assenagon Asset Management S.A. now owns 1,761,180 shares of the company's stock valued at $131,137,000 after purchasing an additional 768,595 shares during the last quarter. Finally, Driehaus Capital Management LLC boosted its stake in BellRing Brands by 19.4% in the first quarter. Driehaus Capital Management LLC now owns 1,461,515 shares of the company's stock worth $108,824,000 after purchasing an additional 237,475 shares in the last quarter. Institutional investors own 94.97% of the company's stock.

BellRing Brands Company Profile

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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