Wall Street Zen Downgrades BRC (NYSE:BRCC) to Sell

Key Points

• BRC (NYSE:BRCC) was downgraded from a "hold" to a "sell" rating by Wall Street Zen, affecting investor sentiment towards the stock.
• The company reported a quarterly loss with an EPS of ($0.07), missing the consensus estimate, despite revenue surpassing expectations.
• Insiders have recently purchased over 676,000 shares of BRC stock in the last quarter, suggesting confidence in the company's potential despite the downgrade.

BRC (NYSE:BRCC - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

Separately, Telsey Advisory Group reaffirmed an "outperform" rating and set a $4.00 price objective on shares of BRC in a report on Tuesday, August 5th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $2.88.

BRC Stock Up 1.0%

Shares of BRCC traded up $0.02 during mid-day trading on Friday, hitting $1.57. 409,373 shares of the company's stock were exchanged, compared to its average volume of 806,484. The firm has a fifty day moving average of $1.62 and a two-hundred day moving average of $1.78. BRC has a twelve month low of $1.19 and a twelve month high of $3.61. The stock has a market cap of $388.48 million, a price-to-earnings ratio of -10.45 and a beta of 0.93. The company has a quick ratio of 0.70, a current ratio of 1.29 and a debt-to-equity ratio of 1.97.

BRC (NYSE:BRCC - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.04). BRC had a negative return on equity of 12.88% and a negative net margin of 2.89%.The firm had revenue of $94.84 million for the quarter, compared to the consensus estimate of $91.78 million. BRC has set its FY 2025 guidance at EPS. On average, sell-side analysts forecast that BRC will post -0.02 earnings per share for the current year.

Insider Activity at BRC

In other BRC news, Director Evan Hafer bought 80,000 shares of BRC stock in a transaction dated Friday, July 18th. The stock was bought at an average price of $1.25 per share, with a total value of $100,000.00. Following the completion of the transaction, the director owned 80,000 shares in the company, valued at $100,000. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Glenn W. Welling acquired 400,000 shares of the business's stock in a transaction that occurred on Friday, July 18th. The shares were purchased at an average cost of $1.25 per share, with a total value of $500,000.00. Following the transaction, the director directly owned 13,935,560 shares of the company's stock, valued at $17,419,450. This trade represents a 2.96% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have bought 676,000 shares of company stock valued at $851,000 in the last ninety days. Company insiders own 73.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in BRCC. Millennium Management LLC increased its stake in shares of BRC by 1,018.3% in the fourth quarter. Millennium Management LLC now owns 1,798,148 shares of the company's stock valued at $5,700,000 after buying an additional 1,637,357 shares during the period. Cresset Asset Management LLC increased its stake in shares of BRC by 30.3% in the second quarter. Cresset Asset Management LLC now owns 4,297,158 shares of the company's stock valued at $5,629,000 after buying an additional 1,000,000 shares during the period. Osaic Holdings Inc. increased its position in BRC by 779.4% during the 2nd quarter. Osaic Holdings Inc. now owns 563,840 shares of the company's stock valued at $739,000 after purchasing an additional 499,722 shares during the period. Goldman Sachs Group Inc. increased its position in BRC by 204.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 651,251 shares of the company's stock valued at $1,361,000 after purchasing an additional 437,359 shares during the period. Finally, Marshall Wace LLP increased its position in BRC by 1,922.7% during the 2nd quarter. Marshall Wace LLP now owns 326,307 shares of the company's stock valued at $427,000 after purchasing an additional 310,175 shares during the period. Institutional investors own 16.29% of the company's stock.

About BRC

BRC Inc, through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel in the United States. The company also produces media content, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders.