Driven Brands (NASDAQ:DRVN) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Driven Brands to “Hold” from “Buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $16.77.
• Driven Brands shares opened at $13.33, up 2.9%, with a $2.20 billion market capitalization. The company reported quarterly EPS of $0.29, while analysts expect full-year EPS of $1.08.
• Activist investor ADW Capital Management, which owns about 4.8% of the company, is urging Driven Brands and Roark Capital to begin a public strategic review that could include a sale of the company or individual business segments.

Driven Brands (NASDAQ:DRVN - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

A number of other equities analysts also recently commented on the company. Royal Bank Of Canada reduced their price objective on Driven Brands from $17.00 to $16.00 and set an "outperform" rating on the stock in a research report on Friday. Canaccord Genuity Group set a $17.00 target price on Driven Brands in a report on Friday. Morgan Stanley set a $14.00 target price on Driven Brands in a research note on Friday. Weiss Ratings upgraded Driven Brands from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, July 28th. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $14.75 price target on shares of Driven Brands in a research report on Wednesday, May 20th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $16.77.

Driven Brands Stock Up 2.9%

DRVN stock opened at $13.33 on Friday. The company has a market cap of $2.20 billion, a price-to-earnings ratio of 12.82 and a beta of 0.95. The company has a current ratio of 1.38, a quick ratio of 1.25 and a debt-to-equity ratio of 2.08. Driven Brands has a 12 month low of $9.80 and a 12 month high of $19.74. The firm has a 50-day moving average of $14.01 and a two-hundred day moving average of $13.70.

Driven Brands (NASDAQ:DRVN - Get Free Report) last issued its earnings results on Monday, July 27th. The company reported $0.29 earnings per share for the quarter. Driven Brands had a return on equity of 24.50% and a net margin of 8.61%. As a group, analysts forecast that Driven Brands will post 1.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Lazard Asset Management LLC grew its position in Driven Brands by 0.3% in the 2nd quarter. Lazard Asset Management LLC now owns 216,423 shares of the company's stock valued at $3,800,000 after acquiring an additional 682 shares in the last quarter. ProShare Advisors LLC lifted its position in shares of Driven Brands by 6.9% during the fourth quarter. ProShare Advisors LLC now owns 10,917 shares of the company's stock worth $162,000 after purchasing an additional 701 shares in the last quarter. Mariner LLC lifted its position in shares of Driven Brands by 1.1% during the fourth quarter. Mariner LLC now owns 71,736 shares of the company's stock worth $1,063,000 after purchasing an additional 812 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of Driven Brands by 82.1% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company's stock valued at $37,000 after purchasing an additional 941 shares during the period. Finally, Vident Advisory LLC boosted its stake in shares of Driven Brands by 8.0% in the fourth quarter. Vident Advisory LLC now owns 19,620 shares of the company's stock valued at $291,000 after purchasing an additional 1,458 shares during the period. 77.08% of the stock is currently owned by institutional investors and hedge funds.

Key Driven Brands News

Here are the key news stories impacting Driven Brands this week:

• Positive Sentiment: Activist investor ADW Capital Management, which owns approximately 4.8% of Driven Brands, urged the board and controlling shareholder Roark Capital to begin an immediate public strategic review. ADW is seeking a potential sale of the entire company or individual business segments, an independent special committee, and an outside financial adviser. The campaign could increase the prospect of a takeover, asset sales, or other actions to unlock shareholder value. ADW Capital letter to Driven Brands
• Neutral Sentiment: Driven Brands reported second-quarter 2026 adjusted earnings of $0.29 per share and revenue of $507.4 million. Results were broadly in line with expectations, with revenue slightly above consensus and earnings beating some estimates, although another estimate placed EPS just below expectations. Driven Brands reports second-quarter 2026 results
• Negative Sentiment: The quarterly update also showed underlying year-over-year pressure: revenue declined 7.9% and EPS fell from $0.36 in the prior-year period to $0.29. The earnings decline and softer sales may limit the stock’s upside unless the strategic-review campaign gains traction. Driven Brands second-quarter earnings analysis

Driven Brands Company Profile

Driven Brands Holdings Inc NASDAQ: DRVN is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company's platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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