Driven Brands Holdings Inc. (NASDAQ:DRVN) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Driven Brands Holdings Inc. has received an average recommendation of "Moderate Buy" from 10 research firms, with a 12-month target price of $21.60.
• Institutional investors are significantly increasing their stakes in Driven Brands, with some firms like Squarepoint Ops LLC increasing their holdings by 315.1% in the second quarter.
• The company reported earnings of $0.36 per share for the last quarter, surpassing analyst expectations and indicating a year-over-year revenue increase of 6.2%.

Driven Brands Holdings Inc. (NASDAQ:DRVN - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the ten ratings firms that are presently covering the company, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $21.60.

A number of brokerages have issued reports on DRVN. Zacks Research upgraded shares of Driven Brands to a "hold" rating in a research note on Friday, August 8th. Canaccord Genuity Group reissued a "buy" rating and issued a $24.00 target price on shares of Driven Brands in a report on Thursday. JPMorgan Chase & Co. raised shares of Driven Brands from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $17.00 to $23.00 in a report on Wednesday, August 6th. Wall Street Zen cut shares of Driven Brands from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Finally, BTIG Research reissued a "buy" rating and issued a $22.00 target price on shares of Driven Brands in a report on Friday, September 12th.

Driven Brands Stock Performance

Shares of DRVN stock traded down $0.27 on Monday, hitting $16.62. The company's stock had a trading volume of 1,614,464 shares, compared to its average volume of 1,141,638. The company has a debt-to-equity ratio of 2.82, a quick ratio of 1.01 and a current ratio of 1.11. The stock's 50 day moving average is $17.55 and its 200-day moving average is $17.28. Driven Brands has a fifty-two week low of $13.47 and a fifty-two week high of $19.74. The company has a market capitalization of $2.73 billion, a PE ratio of -9.78, a PEG ratio of 1.02 and a beta of 1.09.

Driven Brands (NASDAQ:DRVN - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.02. The firm had revenue of $550.99 million for the quarter, compared to the consensus estimate of $540.12 million. Driven Brands had a negative net margin of 12.32% and a positive return on equity of 21.17%. The business's revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.35 earnings per share. Driven Brands has set its FY 2025 guidance at 1.150-1.25 EPS. Equities research analysts expect that Driven Brands will post 0.85 earnings per share for the current fiscal year.

Insider Transactions at Driven Brands

In other Driven Brands news, Director Jonathan G. Fitzpatrick sold 110,000 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $18.05, for a total transaction of $1,985,500.00. Following the completion of the transaction, the director owned 2,279,453 shares in the company, valued at approximately $41,144,126.65. This trade represents a 4.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 3.50% of the company's stock.

Institutional Trading of Driven Brands

Several hedge funds have recently bought and sold shares of the business. Norwood Investment Partners LP bought a new position in Driven Brands during the 1st quarter valued at $15,892,000. Hennessy Advisors Inc. bought a new stake in Driven Brands in the 2nd quarter valued at about $10,562,000. North Peak Capital Management LLC grew its holdings in Driven Brands by 9.0% during the 2nd quarter. North Peak Capital Management LLC now owns 7,123,075 shares of the company's stock valued at $125,081,000 after buying an additional 589,556 shares in the last quarter. Nuveen LLC purchased a new position in Driven Brands during the 1st quarter valued at about $7,167,000. Finally, BI Asset Management Fondsmaeglerselskab A S purchased a new position in Driven Brands during the 2nd quarter valued at about $5,676,000. Institutional investors and hedge funds own 77.08% of the company's stock.

Driven Brands Company Profile

Driven Brands Holdings Inc, together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops.