Driven Brands (NASDAQ:DRVN) Hits New 52-Week High After Better-Than-Expected Earnings

Shares of Driven Brands Holdings Inc. (NASDAQ:DRVN - Get Free Report) reached a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $18.51 and last traded at $18.49, with a volume of 1762013 shares changing hands. The stock had previously closed at $17.33.

The company reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.04. Driven Brands had a net margin of 0.27% and a return on equity of 14.86%. The firm had revenue of $516.16 million for the quarter, compared to analyst estimates of $492.19 million. During the same quarter in the prior year, the business earned $0.23 earnings per share. The business's quarterly revenue was up 7.1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research firms have issued reports on DRVN. Piper Sandler increased their price objective on shares of Driven Brands from $19.00 to $22.00 and gave the company an "overweight" rating in a report on Wednesday, February 26th. Canaccord Genuity Group lifted their price objective on shares of Driven Brands from $21.00 to $23.00 and gave the company a "buy" rating in a report on Wednesday, February 26th. Robert W. Baird set a $25.00 price target on shares of Driven Brands in a research note on Thursday, March 13th. JPMorgan Chase & Co. upped their price target on shares of Driven Brands from $14.50 to $17.00 and gave the company a "neutral" rating in a research report on Wednesday, February 26th. Finally, Benchmark began coverage on shares of Driven Brands in a research note on Friday, April 4th. They issued a "buy" rating and a $22.00 price objective on the stock. Three investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, Driven Brands presently has an average rating of "Moderate Buy" and an average price target of $20.78.

Institutional Investors Weigh In On Driven Brands

Several institutional investors and hedge funds have recently made changes to their positions in the business. Emeth Value Capital LLC purchased a new position in shares of Driven Brands during the 4th quarter worth about $41,452,000. Bamco Inc. NY grew its position in Driven Brands by 35.7% in the fourth quarter. Bamco Inc. NY now owns 4,750,000 shares of the company's stock valued at $76,665,000 after acquiring an additional 1,250,000 shares in the last quarter. Norwood Investment Partners LP acquired a new stake in shares of Driven Brands during the first quarter worth approximately $15,892,000. North Peak Capital Management LLC boosted its holdings in Driven Brands by 8.6% in the fourth quarter. North Peak Capital Management LLC now owns 5,756,217 shares of the company's stock worth $92,905,000 after purchasing an additional 457,217 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in Driven Brands by 54.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,186,095 shares of the company's stock worth $19,141,000 after purchasing an additional 416,744 shares during the period. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Driven Brands Trading Up 1.1%

The stock has a market cap of $2.94 billion, a price-to-earnings ratio of 446.15, a P/E/G ratio of 0.79 and a beta of 1.10. The business's fifty day simple moving average is $16.69 and its 200 day simple moving average is $16.34. The company has a debt-to-equity ratio of 2.84, a current ratio of 1.90 and a quick ratio of 1.72.

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.