BellRing Brands (NYSE:BRBR) Trading Down 5.5% - What's Next?

Key Points

• BellRing Brands' stock price fell 5.5% on Monday, trading as low as $36.02, significantly below its previous close of $38.07.
• Thirteen equities analysts have a "Buy" rating on the stock, with a consensus target price of $64.80, indicating a generally positive outlook despite recent price declines.
• The company announced a $400 million share buyback program, which suggests that its board believes the shares are undervalued.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report)'s share price fell 5.5% during mid-day trading on Monday . The company traded as low as $36.02 and last traded at $35.98. 1,623,667 shares were traded during trading, a decline of 28% from the average session volume of 2,269,965 shares. The stock had previously closed at $38.07.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on BRBR. Jefferies Financial Group upped their price objective on BellRing Brands from $80.00 to $82.00 and gave the stock a "buy" rating in a research note on Wednesday, July 23rd. Truist Financial cut their price objective on BellRing Brands from $60.00 to $40.00 and set a "hold" rating for the company in a research report on Wednesday, August 6th. DA Davidson raised BellRing Brands from a "neutral" rating to a "buy" rating and set a $85.00 price objective for the company in a research report on Tuesday, May 27th. Stephens raised BellRing Brands from an "equal weight" rating to an "overweight" rating and cut their price objective for the company from $68.00 to $50.00 in a research report on Wednesday, August 6th. Finally, Morgan Stanley cut their price objective on BellRing Brands from $78.00 to $58.00 and set an "overweight" rating for the company in a research report on Wednesday, August 6th. Thirteen equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $64.80.

BellRing Brands Trading Down 6.7%

The stock has a 50 day simple moving average of $45.99 and a 200 day simple moving average of $59.76. The stock has a market cap of $4.47 billion, a P/E ratio of 20.29, a price-to-earnings-growth ratio of 1.86 and a beta of 0.74.

BellRing Brands (NYSE:BRBR - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The company reported $0.55 EPS for the quarter, topping analysts' consensus estimates 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 firm had revenue of $547.50 million for the quarter, compared to analyst estimates of $530.76 million. During the same quarter last year, the company earned $0.54 EPS. The company's revenue was up 6.2% on a year-over-year basis. BellRing Brands has set its FY 2025 guidance at EPS. Equities analysts anticipate that BellRing Brands Inc. will post 2.23 earnings per share for the current year.

BellRing Brands declared that its board has approved a share buyback program on Tuesday, September 2nd that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 7.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, CEO Darcy Horn Davenport sold 1,600 shares of BellRing Brands stock in a transaction on Friday, August 1st. The stock was sold at an average price of $54.18, for a total value of $86,688.00. Following the transaction, the chief executive officer owned 193,978 shares in the company, valued at approximately $10,509,728.04. This trade represents a 0.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Shawn Conway purchased 2,700 shares of the firm's stock in a transaction dated Wednesday, August 6th. The stock was acquired at an average price of $36.41 per share, for a total transaction of $98,307.00. Following the purchase, the director owned 6,685 shares in the company, valued at approximately $243,400.85. The trade was a 67.75% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have acquired 6,616 shares of company stock worth $65,995,248 and have sold 11,200 shares worth $638,640. Corporate insiders own 1.07% of the company's stock.

Institutional Investors Weigh In On BellRing Brands

Several hedge funds have recently modified their holdings of BRBR. Cetera Investment Advisers boosted its holdings in shares of BellRing Brands by 15.5% during the 4th quarter. Cetera Investment Advisers now owns 20,418 shares of the company's stock valued at $1,538,000 after acquiring an additional 2,736 shares in the last quarter. Lazard Asset Management LLC boosted its holdings in shares of BellRing Brands by 361.5% during the 4th quarter. Lazard Asset Management LLC now owns 6,673 shares of the company's stock valued at $502,000 after acquiring an additional 5,227 shares in the last quarter. Nomura Holdings Inc. acquired a new stake in shares of BellRing Brands during the 4th quarter valued at $1,292,000. Quantinno Capital Management LP acquired a new stake in shares of BellRing Brands during the 4th quarter valued at $250,000. Finally, ProShare Advisors LLC boosted its holdings in shares of BellRing Brands by 7.3% during the 4th quarter. ProShare Advisors LLC now owns 6,046 shares of the company's stock valued at $456,000 after acquiring an additional 412 shares in the last quarter. Institutional investors and hedge funds 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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