Driven Brands (NASDAQ:DRVN) Reaches New 12-Month High - Here's Why

Key Points

• Driven Brands (NASDAQ:DRVN) shares reached a new 52-week high at $18.72 amid strong trading volume, closing at $18.58.
• Analysts have shown confidence in Driven Brands, with several upgrades, including Canaccord Genuity raising the target price from $23.00 to $24.00 and JPMorgan Chase increasing its price objective from $17.00 to $23.00.
• The company reported earnings of $0.36 per share for the last quarter, exceeding estimates and achieving a 6.2% increase in revenue compared to the same quarter last year.

Shares of Driven Brands Holdings Inc. (NASDAQ:DRVN - Get Free Report) reached a new 52-week high during trading on Monday . The stock traded as high as $18.72 and last traded at $18.58, with a volume of 154531 shares traded. The stock had previously closed at $18.25.

Wall Street Analysts Forecast Growth

DRVN has been the subject of several recent analyst reports. JPMorgan Chase & Co. upgraded shares of Driven Brands from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $17.00 to $23.00 in a research note on Wednesday, August 6th. Wall Street Zen lowered Driven Brands from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Zacks Research raised Driven Brands to a "hold" rating in a report on Friday, August 8th. BTIG Research started coverage on Driven Brands in a report on Monday, June 30th. They set a "buy" rating and a $22.00 price objective on the stock. Finally, Canaccord Genuity Group upped their price objective on Driven Brands from $23.00 to $24.00 and gave the stock a "buy" rating in a report on Friday, June 27th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $21.60.

Driven Brands Trading Up 1.5%

The company has a debt-to-equity ratio of 2.82, a current ratio of 1.11 and a quick ratio of 1.01. The company has a market cap of $3.03 billion, a price-to-earnings ratio of -10.84, a PEG ratio of 1.09 and a beta of 1.08. The business's 50-day simple moving average is $17.39 and its 200-day simple moving average is $17.06.

Driven Brands (NASDAQ:DRVN - Get Free Report) last announced its earnings results 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 company had revenue of $550.99 million during the quarter, compared to analysts' expectations of $540.12 million. Driven Brands had a negative net margin of 12.32% and a positive return on equity of 21.17%. The firm's quarterly revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.35 earnings per share. Driven Brands has set its FY 2025 guidance at 1.150-1.25 EPS. Research analysts predict that Driven Brands Holdings Inc. will post 0.85 earnings per share for the current fiscal year.

Institutional Trading of Driven Brands

Hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC boosted its position in Driven Brands by 744.6% during the second quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company's stock worth $37,000 after acquiring an additional 1,854 shares during the last quarter. Summit Securities Group LLC acquired a new stake in Driven Brands during the first quarter worth approximately $72,000. Tower Research Capital LLC TRC boosted its position in Driven Brands by 709.3% during the second quarter. Tower Research Capital LLC TRC now owns 8,490 shares of the company's stock worth $149,000 after acquiring an additional 7,441 shares during the last quarter. XTX Topco Ltd acquired a new stake in Driven Brands during the first quarter worth approximately $182,000. Finally, AlphaQuest LLC grew its holdings in Driven Brands by 64.1% in the second quarter. AlphaQuest LLC now owns 11,246 shares of the company's stock valued at $197,000 after purchasing an additional 4,394 shares during the period. Institutional investors and hedge funds own 77.08% of the company's stock.

About Driven Brands

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.