Elgethun Capital Management Purchases New Holdings in Driven Brands Holdings Inc. $DRVN

Key Points

• Elgethun Capital Management acquired 513,979 shares of Driven Brands (NASDAQ:DRVN) in Q3 valued at about $8.14M, representing roughly 0.31% ownership of the company and about 1.5% of Elgethun’s portfolio; institutional investors own ~77% of the stock.
• Driven Brands is the target of multiple class‑action lawsuits alleging pervasive accounting errors and internal control failures (with at least one federal filing and disclosures pointing to a roughly $800M market‑cap wipeout), increasing the risk of restatements, regulatory scrutiny, and potential damages.
• Insider Scott L. O’Melia sold 46,875 shares at an average of $16 (a 12.54% drop in his holdings), while the company posted a slight EPS beat ($0.30 vs. $0.29) but still shows a negative net margin (-9.14%) and high leverage (debt/equity 2.44) with a market cap around $1.72B and a consensus analyst target near $20.

Elgethun Capital Management acquired a new position in Driven Brands Holdings Inc. (NASDAQ:DRVN - Free Report) in the third quarter, according to the company in its most recent filing with the SEC. The firm acquired 513,979 shares of the company's stock, valued at approximately $8,137,000. Driven Brands accounts for approximately 1.5% of Elgethun Capital Management's portfolio, making the stock its 21st biggest position. Elgethun Capital Management owned 0.31% of Driven Brands as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of DRVN. Lazard Asset Management LLC raised its stake in shares of Driven Brands by 0.3% in the second quarter. Lazard Asset Management LLC now owns 216,423 shares of the company's stock valued at $3,800,000 after purchasing an additional 682 shares in the last quarter. Handelsbanken Fonder AB boosted its stake in Driven Brands by 2.7% during the second quarter. Handelsbanken Fonder AB now owns 30,900 shares of the company's stock worth $543,000 after buying an additional 800 shares in the last quarter. Osaic Holdings Inc. increased its holdings in Driven Brands by 82.1% in the 2nd quarter. Osaic Holdings Inc. now owns 2,087 shares of the company's stock valued at $37,000 after buying an additional 941 shares during the period. Creative Planning raised its stake in shares of Driven Brands by 4.4% in the 2nd quarter. Creative Planning now owns 34,247 shares of the company's stock valued at $601,000 after buying an additional 1,444 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Driven Brands by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,597 shares of the company's stock valued at $610,000 after buying an additional 1,493 shares in the last quarter. 77.08% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other news, insider Scott L. O'melia sold 46,875 shares of the stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $16.00, for a total transaction of $750,000.00. Following the sale, the insider owned 326,944 shares in the company, valued at approximately $5,231,104. This represents a 12.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 3.50% of the company's stock.

Key Headlines Impacting Driven Brands

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

• Neutral Sentiment: Multiple national plaintiff firms are notifying investors and soliciting lead‑plaintiff candidates, concentrating attention (and potential litigation costs) on the company. Driven Brands Holdings Inc. (DRVN) Investors: May 8, 2026, Deadline in Securities Fraud Class Action Lawsuit – Contact Kessler Topaz Meltzer & Check, LLP
• Neutral Sentiment: Several additional firms (Pomerantz, Glancy, Rosen, Robbins, Berger Montague, etc.) have issued investor alerts and reminders about the May 8 lead‑plaintiff deadline — increasing the number of potential claimants and media attention. INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Driven Brands Holdings Inc. of Class Action Lawsuit and Upcoming Deadlines - DRVN
• Negative Sentiment: Lawsuits allege pervasive accounting errors and internal control failures spanning 2023–2025; plaintiffs claim the company misled investors about its financials — a core business risk that can trigger restatements, regulatory scrutiny, and damages. DRVN INVESTOR ALERT: Hagens Berman Notifies Driven Brands (DRVN) Investors to Securities Class Action Following $800M Market Cap Wipeout
• Negative Sentiment: One notice highlights an estimated ~$800M market‑cap wipeout after the disclosure — an indicator of investor loss magnitude and market skepticism about recovery prospects. DRVN INVESTOR ALERT: Hagens Berman Notifies Driven Brands (DRVN) Investors to Securities Class Action Following $800M Market Cap Wipeout
• Negative Sentiment: Several alerts reference the company’s admission that previously issued financial statements may be unreliable and call out a nearly 40% share‑price decline tied to that disclosure — signaling material reputational and financial risk. DRVN Fraud Reminder: Driven-Brands Investors with Losses may have been Affected by Securities Fraud – Contact BFA Law about Your Rights before May 8
• Negative Sentiment: At least one class action has been filed in federal court; ongoing litigation increases uncertainty around potential restatements, fines, and executive liability. Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Driven Brands Holdings Inc. (DRVN)

Driven Brands Stock Performance

NASDAQ DRVN opened at $10.48 on Friday. Driven Brands Holdings Inc. has a 1-year low of $9.80 and a 1-year high of $19.74. The company has a 50 day moving average of $14.81 and a 200-day moving average of $15.38. The company has a current ratio of 0.90, a quick ratio of 0.80 and a debt-to-equity ratio of 2.44. The firm has a market cap of $1.72 billion, a price-to-earnings ratio of -8.45 and a beta of 1.09.

Driven Brands (NASDAQ:DRVN - Get Free Report) last released its quarterly earnings results on Friday, March 13th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.01. Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%.The business had revenue of $457.33 million for the quarter, compared to analyst estimates of $459.50 million. During the same period in the prior year, the company earned $0.30 EPS. On average, equities analysts forecast that Driven Brands Holdings Inc. will post 0.85 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts have recently weighed in on DRVN shares. BTIG Research reiterated a "buy" rating and set a $21.00 target price on shares of Driven Brands in a research report on Thursday, January 8th. Stifel Nicolaus set a $23.00 price target on shares of Driven Brands in a research report on Monday, November 17th. Morgan Stanley decreased their price objective on Driven Brands from $20.00 to $17.00 and set an "equal weight" rating on the stock in a report on Thursday, January 15th. Weiss Ratings reiterated a "sell (d)" rating on shares of Driven Brands in a research note on Monday, December 29th. Finally, William Blair raised Driven Brands from a "market perform" rating to an "outperform" rating in a report on Wednesday, December 3rd. Five investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Driven Brands has an average rating of "Hold" and a consensus target price of $20.00.

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.

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