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

Key Points

• BellRing Brands Inc. shares hit a new 52-week low at $32.53, following significant price target reductions from major analysts, indicating a poor market outlook.
• The company is initiating a $400 million share buyback program, signifying that the board views the stock as undervalued.
• Insider activity shows both selling and buying of shares, with CEO Darcy Horn Davenport reducing her stake while a director increased theirs significantly.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The stock traded as low as $32.53 and last traded at $32.57, with a volume of 279358 shares changing hands. The stock had previously closed at $33.00.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on BRBR shares. Morgan Stanley dropped their price objective on shares of BellRing Brands from $78.00 to $58.00 and set an "overweight" rating for the company in a research note on Wednesday, August 6th. Truist Financial cut 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. Weiss Ratings reissued a "hold (c)" rating on shares of BellRing Brands in a research note on Wednesday, October 8th. Stephens raised BellRing Brands from an "equal weight" rating to an "overweight" rating and cut their target price for the stock from $68.00 to $50.00 in a research report on Wednesday, August 6th. Finally, Mizuho lowered their price target on BellRing Brands from $75.00 to $45.00 and set an "outperform" rating for the company in a research report on Monday, August 18th. Thirteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $64.27.

BellRing Brands Stock Performance

The firm has a market capitalization of $4.04 billion, a price-to-earnings ratio of 18.33, a price-to-earnings-growth ratio of 1.61 and a beta of 0.75. The company's fifty day moving average price is $37.50 and its 200 day moving average price is $53.79.

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

BellRing Brands declared that its Board of Directors has initiated a share buyback program on Tuesday, September 2nd that allows the company to buyback $400.00 million in shares. This buyback authorization allows the company to buy up to 7.7% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board believes its stock is undervalued.

Insider Activity at BellRing Brands

In related news, CEO Darcy Horn Davenport sold 1,600 shares of the firm's stock in a transaction dated 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 transaction, the chief executive officer owned 193,978 shares of the company's stock, valued at $10,509,728.04. This trade represents a 0.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Shawn Conway purchased 1,316 shares of the company's stock in a transaction on Thursday, August 14th. The stock was 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 of the company's stock, valued at $400,049,919.99. This represents a 19.69% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 6,616 shares of company stock worth $65,995,248 over the last ninety days. 1.07% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On BellRing Brands

Large investors have recently made changes to their positions in the company. Diversified Trust Co purchased a new stake in shares of BellRing Brands in the third quarter valued at $528,000. E. Ohman J or Asset Management AB grew its stake in BellRing Brands by 18.6% in the third quarter. E. Ohman J or Asset Management AB now owns 559,635 shares of the company's stock valued at $20,343,000 after purchasing an additional 87,948 shares in the last quarter. Carnegie Investment Counsel grew its position in BellRing Brands by 7.0% in the third quarter. Carnegie Investment Counsel now owns 60,783 shares of the company's stock worth $2,209,000 after acquiring an additional 3,962 shares in the last quarter. CWM LLC increased its position in BellRing Brands by 2,681.6% during the third quarter. CWM LLC now owns 88,287 shares of the company's stock worth $3,209,000 after buying an additional 85,113 shares during the last quarter. Finally, Pacer Advisors Inc. raised its stake in shares of BellRing Brands by 314.0% in the 3rd quarter. Pacer Advisors Inc. now owns 16,810 shares of the company's stock valued at $611,000 after acquiring an additional 12,750 shares in the last quarter. Institutional investors and hedge funds 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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