Hennessy Advisors Inc. Invests $10.56 Million in Driven Brands Holdings Inc. $DRVN

Key Points

• Hennessy Advisors Inc. invested approximately $10.56 million in Driven Brands Holdings Inc. by purchasing 601,500 shares in the second quarter of 2023, representing about 0.37% of the company's stock.
• Driven Brands has received favorable ratings from analysts, with Canaccord Genuity maintaining a "buy" rating and a price target of $24, while JPMorgan Chase raised its rating from "neutral" to "overweight" with a revised target of $23.
• Driven Brands reported a revenue increase of 6.2% year-over-year, totaling $550.99 million, and beat EPS estimates by reporting $0.36 for the quarter, above the expected $0.34.

Hennessy Advisors Inc. purchased a new position in shares of Driven Brands Holdings Inc. (NASDAQ:DRVN - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 601,500 shares of the company's stock, valued at approximately $10,562,000. Hennessy Advisors Inc. owned about 0.37% of Driven Brands at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Principal Financial Group Inc. acquired a new stake in shares of Driven Brands during the 1st quarter worth approximately $2,850,000. Yorktown Management & Research Co Inc acquired a new stake in shares of Driven Brands during the 1st quarter worth approximately $255,000. Northern Trust Corp increased its holdings in shares of Driven Brands by 5.4% during the 1st quarter. Northern Trust Corp now owns 609,645 shares of the company's stock worth $10,449,000 after buying an additional 31,430 shares during the last quarter. Informed Momentum Co LLC acquired a new stake in shares of Driven Brands during the 1st quarter worth approximately $3,444,000. Finally, Russell Investments Group Ltd. increased its holdings in shares of Driven Brands by 11.7% during the 1st quarter. Russell Investments Group Ltd. now owns 191,435 shares of the company's stock worth $3,281,000 after buying an additional 20,044 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on DRVN shares. Canaccord Genuity Group reaffirmed a "buy" rating and set a $24.00 price objective on shares of Driven Brands in a research report on Thursday, September 18th. BTIG Research reaffirmed a "buy" rating and set a $22.00 price objective on shares of Driven Brands in a research report on Friday, September 12th. JPMorgan Chase & Co. raised shares of Driven Brands from a "neutral" rating to an "overweight" rating and increased their price objective for the stock from $17.00 to $23.00 in a research report on Wednesday, August 6th. Zacks Research raised shares of Driven Brands to a "hold" rating in a research report on Friday, August 8th. Finally, Wall Street Zen cut shares of Driven Brands from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Seven research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $21.60.

Insider Buying and Selling

In other Driven Brands news, Director Jonathan G. Fitzpatrick sold 110,000 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $18.05, for a total value of $1,985,500.00. Following the completion of the transaction, the director owned 2,279,453 shares of the company's stock, valued at $41,144,126.65. This trade represents a 4.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 3.50% of the stock is owned by corporate insiders.

Driven Brands Stock Performance

Shares of DRVN stock opened at $15.65 on Friday. The company has a quick ratio of 1.01, a current ratio of 1.11 and a debt-to-equity ratio of 2.82. Driven Brands Holdings Inc. has a 52 week low of $13.47 and a 52 week high of $19.74. The stock has a market capitalization of $2.57 billion, a PE ratio of -9.21, a P/E/G ratio of 0.95 and a beta of 1.06. The firm has a 50 day moving average of $17.31 and a two-hundred day moving average of $17.25.

Driven Brands (NASDAQ:DRVN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.34 by $0.02. Driven Brands had a negative net margin of 12.32% and a positive return on equity of 21.17%. The company had revenue of $550.99 million during the quarter, compared to analysts' expectations of $540.12 million. During the same quarter last year, the company posted $0.35 EPS. The firm's revenue was up 6.2% compared to the same quarter last year. Driven Brands has set its FY 2025 guidance at 1.150-1.25 EPS. On average, research analysts predict that Driven Brands Holdings Inc. will post 0.85 EPS for the current fiscal year.

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.

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