DA Davidson Upgrades BellRing Brands (NYSE:BRBR) to Strong-Buy

Key Points

• DA Davidson upgraded BellRing Brands to a “strong-buy” rating, giving the stock a bullish new endorsement even as the broader analyst community remains cautious.
• Other firms recently cut their outlooks and price targets, leaving BellRing with an average analyst rating of “Hold” and an average price target of $22.47.
• BellRing shares rose to $14.01 on Monday, but the company recently reported a weak quarter with EPS of $0.14 versus $0.31 expected and revenue slightly below forecasts.

BellRing Brands (NYSE:BRBR - Get Free Report) was upgraded by research analysts at DA Davidson to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research analysts also recently issued reports on BRBR. Barclays dropped their price target on shares of BellRing Brands from $22.00 to $13.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 6th. UBS Group decreased their price objective on shares of BellRing Brands from $19.00 to $12.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Bank of America lowered their target price on shares of BellRing Brands from $22.00 to $19.00 and set a "neutral" rating for the company in a research note on Friday, April 10th. Morgan Stanley restated an "equal weight" rating and issued a $13.00 target price (down from $24.00) on shares of BellRing Brands in a report on Wednesday, May 6th. Finally, TD Cowen cut 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. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $22.47.

BellRing Brands Stock Performance

Shares of BRBR traded up $0.56 during mid-day trading on Monday, reaching $14.01. 2,137,742 shares of the company were exchanged, compared to its average volume of 4,727,769. The business has a 50 day simple moving average of $10.70 and a two-hundred day simple moving average of $17.21. The stock has a market capitalization of $1.63 billion, a PE ratio of 10.81, a PEG ratio of 6.83 and a beta of 0.45. BellRing Brands has a 52 week low of $7.82 and a 52 week high of $59.10.

BellRing Brands (NYSE:BRBR - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.17). The company had revenue of $598.70 million during the quarter, compared to the consensus estimate of $608.88 million. BellRing Brands had a net margin of 6.78% and a negative return on equity of 44.06%. The business's revenue was up 1.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.53 earnings per share. On average, analysts predict that BellRing Brands will post 1.22 EPS for the current year.

Insider Activity

In related news, Director David Isaiah Finkelstein acquired 4,000 shares of BellRing Brands stock in a transaction dated Wednesday, May 13th. The stock was bought at an average price of $9.23 per share, with a total value of $36,920.00. Following the transaction, the director directly owned 13,326 shares in the company, valued at $122,998.98. This represents a 42.89% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its holdings in BellRing Brands by 20.2% in the first quarter. Goldman Sachs Group Inc. now owns 253,403 shares of the company's stock worth $18,868,000 after purchasing an additional 42,666 shares during the period. Caxton Associates LLP acquired a new position in shares of BellRing Brands during the first quarter valued at about $278,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of BellRing Brands by 42.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,248 shares of the company's stock valued at $72,000 after purchasing an additional 373 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of BellRing Brands by 89.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,595 shares of the company's stock worth $92,000 after purchasing an additional 755 shares in the last quarter. Finally, California Public Employees Retirement System boosted its position in shares of BellRing Brands by 4.2% during the 2nd quarter. California Public Employees Retirement System now owns 226,101 shares of the company's stock worth $13,098,000 after purchasing an additional 9,179 shares in the last quarter. 94.97% of the stock is owned by institutional investors.

About BellRing Brands

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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