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

Key Points

• Driven Brands has been downgraded by Wall Street Zen from a "buy" rating to a "hold" rating.
• Canaccord Genuity raised their target price for Driven Brands from $23 to $24, maintaining a "buy" rating, while JPMorgan Chase upgraded their rating to "overweight" with a target price of $23.
• Driven Brands reported a quarterly EPS of $0.36, beating estimates, with a revenue increase of 6.2% year-over-year, totaling $550.99 million.

Wall Street Zen cut shares of Driven Brands (NASDAQ:DRVN - Free Report) from a buy rating to a hold rating in a research note released on Saturday.

A number of other brokerages have also issued reports on DRVN. BTIG Research started coverage on Driven Brands in a research note on Monday, June 30th. They set a "buy" rating and a $22.00 price target for the company. Canaccord Genuity Group lifted their target price on Driven Brands from $23.00 to $24.00 and gave the company a "buy" rating in a research report on Friday, June 27th. JPMorgan Chase & Co. raised Driven Brands from a "neutral" rating to an "overweight" rating and lifted their target price for the company from $17.00 to $23.00 in a research report on Wednesday, August 6th. Finally, The Goldman Sachs Group started coverage on Driven Brands in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $20.00 target price for the company. Three investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, Driven Brands presently has an average rating of "Moderate Buy" and an average price target of $21.60.

Driven Brands Trading Up 1.7%

Shares of DRVN stock traded up $0.29 on Friday, reaching $17.09. 109,251 shares of the company's stock were exchanged, compared to its average volume of 694,581. Driven Brands has a 52 week low of $12.93 and a 52 week high of $18.72. The company has a current ratio of 1.11, a quick ratio of 1.01 and a debt-to-equity ratio of 2.82. The stock has a market capitalization of $2.81 billion, a PE ratio of -10.05, a P/E/G ratio of 1.00 and a beta of 1.08. The company's fifty day simple moving average is $17.33 and its 200 day simple moving average is $16.96.

Driven Brands (NASDAQ:DRVN - Get Free Report) last issued its quarterly 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. Driven Brands had a positive return on equity of 21.17% and a negative net margin of 12.32%. The firm had revenue of $550.99 million during the quarter, compared to analyst estimates of $540.12 million. During the same period last year, the company earned $0.35 EPS. Driven Brands's quarterly revenue was up 6.2% compared to the same quarter last year. As a group, analysts forecast that Driven Brands will post 0.85 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in DRVN. LPL Financial LLC purchased a new position in shares of Driven Brands in the 4th quarter valued at $178,000. Norges Bank purchased a new position in shares of Driven Brands in the 4th quarter valued at $1,742,000. Alliancebernstein L.P. increased its holdings in shares of Driven Brands by 8.5% in the 4th quarter. Alliancebernstein L.P. now owns 78,731 shares of the company's stock valued at $1,271,000 after acquiring an additional 6,200 shares during the period. ExodusPoint Capital Management LP purchased a new position in shares of Driven Brands in the 4th quarter valued at $230,000. Finally, Wells Fargo & Company MN increased its holdings in shares of Driven Brands by 34.5% in the 4th quarter. Wells Fargo & Company MN now owns 34,722 shares of the company's stock valued at $560,000 after acquiring an additional 8,909 shares during the period. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

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.