BellRing Brands (NYSE:BRBR) Stock Price Up 4.1% - What's Next?

Key Points

• BellRing Brands Inc. (NYSE: BRBR) saw its stock price increase by 4.1%, closing at $35.10 after trading as high as $35.18, though volume dipped to about 885,180 shares, significantly lower than its average.
• Several analysts have lowered their target prices for BellRing Brands, with Mizuho setting a new target of $45.00, while Zacks downgraded the stock from "hold" to "strong sell," reflecting a mixed outlook.
• The company's Board has authorized a $400 million stock buyback plan, indicating confidence in the stock's long-term value and potential undervaluation.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report) rose 4.1% during trading on Tuesday . The stock traded as high as $35.18 and last traded at $35.10. Approximately 885,180 shares changed hands during trading, a decline of 61% from the average daily volume of 2,287,940 shares. The stock had previously closed at $33.73.

Analyst Ratings Changes

BRBR has been the subject of several research analyst reports. Mizuho lowered their target price on BellRing Brands from $75.00 to $45.00 and set an "outperform" rating for the company in a research note on Monday, August 18th. Evercore ISI lowered their target price on BellRing Brands from $82.00 to $64.00 and set an "outperform" rating for the company in a research note on Wednesday, August 6th. Morgan Stanley lowered their target price on BellRing Brands from $78.00 to $58.00 and set an "overweight" rating for the company in a research note on Wednesday, August 6th. Zacks Research downgraded BellRing Brands from a "hold" rating to a "strong sell" rating in a research note on Wednesday, October 1st. Finally, Truist Financial lowered their price objective on BellRing Brands from $60.00 to $40.00 and set a "hold" rating for the company in a research note on Wednesday, August 6th. Thirteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $64.80.

BellRing Brands Price Performance

The company has a fifty day moving average of $39.84 and a 200 day moving average of $56.31. The firm has a market capitalization of $4.36 billion, a P/E ratio of 19.77, a PEG ratio of 1.62 and a beta of 0.75.

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

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

Insider Activity at BellRing Brands

In other BellRing Brands news, CEO Darcy Horn Davenport sold 1,600 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 193,978 shares in the company, valued at approximately $10,509,728.04. This represents a 0.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Shawn Conway purchased 1,316 shares of the business's stock in a transaction on Thursday, August 14th. The shares were 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 acquisition, the director directly owned 8,001 shares in the company, valued at approximately $400,049,919.99. This represents a 19.69% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have purchased 6,616 shares of company stock worth $65,995,248 and have sold 6,400 shares worth $358,352. 1.07% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On BellRing Brands

A number of institutional investors and hedge funds have recently modified their holdings of BRBR. Maseco LLP bought a new position in shares of BellRing Brands during the 2nd quarter worth approximately $25,000. TCTC Holdings LLC lifted 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 worth $30,000 after purchasing an additional 190 shares in the last quarter. First Horizon Advisors Inc. lifted its holdings in shares of BellRing Brands by 283.3% in the 1st quarter. First Horizon Advisors Inc. now owns 460 shares of the company's stock worth $34,000 after purchasing an additional 340 shares in the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of BellRing Brands by 149.8% in the 1st quarter. Smartleaf Asset Management LLC now owns 517 shares of the company's stock worth $38,000 after purchasing an additional 310 shares in the last quarter. Finally, Larson Financial Group LLC lifted its holdings in shares of BellRing Brands by 2,660.0% in the 1st quarter. Larson Financial Group LLC now owns 690 shares of the company's stock worth $51,000 after purchasing an additional 665 shares in the last quarter. 94.97% of the stock is currently owned by institutional investors.

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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