BellRing Brands (NYSE:BRBR) Shares Gap Down Following Weak Earnings

Key Points

• BellRing Brands shares fell sharply after the company reported quarterly EPS of $0.30, missing the $0.37 consensus estimate. Revenue exceeded expectations at $570.4 million and rose 4.2% year over year, but EPS declined from $0.55 in the prior-year quarter.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $20.97; several firms recently cut their targets, while DA Davidson upgraded the stock to “Strong Buy.”
• Institutional investors own nearly 95% of the company, and director David Finkelstein recently purchased 4,000 shares at $9.23 each, increasing his stake by 42.89%.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report)'s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $12.95, but opened at $10.55. BellRing Brands shares last traded at $12.1670, with a volume of 1,730,392 shares.

The company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.07). The business had revenue of $570.40 million for the quarter, compared to analyst estimates of $548.72 million. BellRing Brands had a negative return on equity of 44.06% and a net margin of 6.78%.BellRing Brands's revenue for the quarter was up 4.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.55 EPS.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on BRBR shares. DA Davidson upgraded shares of BellRing Brands to a "strong-buy" rating in a research note on Monday, July 6th. TD Cowen decreased their price target on shares of BellRing Brands from $17.00 to $11.00 and set a "hold" rating on the stock in a research report on Wednesday, May 6th. Morgan Stanley restated an "equal weight" rating and set a $13.00 price objective (down from $24.00) on shares of BellRing Brands in a report on Wednesday, May 6th. Bank of America cut their price objective on shares of BellRing Brands from $22.00 to $19.00 and set a "neutral" rating for the company in a research report on Friday, April 10th. Finally, Barclays increased their target price on shares of BellRing Brands from $13.00 to $14.00 and gave the company an "overweight" rating in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $20.97.

Insider Activity at BellRing Brands

In other news, Director David Isaiah Finkelstein bought 4,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was acquired at an average cost of $9.23 per share, for a total transaction of $36,920.00. Following the completion of the purchase, the director owned 13,326 shares of the company's stock, valued at $122,998.98. This trade represents a 42.89% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On BellRing Brands

A number of institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC increased its stake in BellRing Brands by 86.9% in the fourth quarter. AQR Capital Management LLC now owns 7,006,847 shares of the company's stock valued at $187,013,000 after acquiring an additional 3,258,035 shares during the period. Alyeska Investment Group L.P. bought a new position in BellRing Brands during the third quarter worth about $98,944,000. The Manufacturers Life Insurance Company lifted its stake in BellRing Brands by 156.3% during the fourth quarter. The Manufacturers Life Insurance Company now owns 3,830,164 shares of the company's stock worth $102,380,000 after purchasing an additional 2,336,029 shares during the period. River Road Asset Management LLC acquired a new stake in BellRing Brands during the fourth quarter valued at approximately $56,465,000. Finally, Wasatch Advisors LP boosted its holdings in BellRing Brands by 30.5% during the third quarter. Wasatch Advisors LP now owns 6,750,018 shares of the company's stock valued at $245,363,000 after purchasing an additional 1,575,812 shares in the last quarter. Institutional investors and hedge funds own 94.97% of the company's stock.

BellRing Brands Stock Performance

The company has a market capitalization of $1.40 billion, a P/E ratio of 9.32, a price-to-earnings-growth ratio of 6.02 and a beta of 0.45. The firm has a 50 day moving average price of $11.16 and a two-hundred day moving average price of $15.09.

BellRing Brands Company Profile

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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