Hodges Capital Management Inc. Reduces Position in BellRing Brands Inc. $BRBR

Key Points

• Hodges Capital Management Inc. reduced its position in BellRing Brands Inc. by 48.0%, owning 49,509 shares after selling 45,672 shares during the first quarter.
• BellRing Brands has initiated a $400 million stock buyback program, allowing the company to repurchase up to 7.7% of its stock, indicating management believes the stock is undervalued.
• Despite a decrease in price targets from several analysts, BellRing Brands maintains an average rating of "Moderate Buy" with a price target of $64.80.

Hodges Capital Management Inc. trimmed its holdings in shares of BellRing Brands Inc. (NYSE:BRBR - Free Report) by 48.0% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 49,509 shares of the company's stock after selling 45,672 shares during the quarter. Hodges Capital Management Inc.'s holdings in BellRing Brands were worth $3,686,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of BellRing Brands during the first quarter worth about $280,000. GAMMA Investing LLC grew its stake in BellRing Brands by 12.2% in the first quarter. GAMMA Investing LLC now owns 2,316 shares of the company's stock worth $172,000 after purchasing an additional 252 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its stake in BellRing Brands by 0.6% in the first quarter. Robeco Institutional Asset Management B.V. now owns 72,051 shares of the company's stock worth $5,365,000 after purchasing an additional 438 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its stake in BellRing Brands by 71.4% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 8,883 shares of the company's stock worth $661,000 after purchasing an additional 3,700 shares in the last quarter. Finally, Janney Montgomery Scott LLC grew its stake in BellRing Brands by 31.6% in the first quarter. Janney Montgomery Scott LLC now owns 18,584 shares of the company's stock worth $1,384,000 after purchasing an additional 4,461 shares in the last quarter. 94.97% of the stock is owned by hedge funds and other institutional investors.

BellRing Brands Stock Up 1.7%

Shares of BRBR stock opened at $37.39 on Friday. The business has a 50 day moving average of $46.82 and a two-hundred day moving average of $60.41. BellRing Brands Inc. has a 52 week low of $34.02 and a 52 week high of $80.67. The company has a market cap of $4.71 billion, a P/E ratio of 21.37, a PEG ratio of 1.79 and a beta of 0.74.

BellRing Brands (NYSE:BRBR - Get Free Report) last issued its earnings results on Monday, August 4th. The company reported $0.55 EPS for the quarter, beating analysts' consensus estimates of $0.49 by $0.06. BellRing Brands had a negative return on equity of 123.43% and a net margin of 10.26%.The company had revenue of $547.50 million during the quarter, compared to the consensus estimate of $530.76 million. During the same period in the previous year, the firm posted $0.54 earnings per share. BellRing Brands's quarterly revenue was up 6.2% compared to the same quarter last year. BellRing Brands has set its FY 2025 guidance at EPS. Analysts expect that BellRing Brands Inc. will post 2.23 EPS for the current fiscal year.

BellRing Brands declared that its Board of Directors has initiated a stock buyback program on Tuesday, September 2nd that allows the company to buyback $400.00 million in shares. This buyback authorization allows the company to repurchase up to 7.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. UBS Group decreased their price target on BellRing Brands from $63.00 to $40.00 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. DA Davidson upgraded BellRing Brands from a "neutral" rating to a "buy" rating and set a $85.00 price target for the company in a research note on Tuesday, May 27th. Morgan Stanley decreased their price target on BellRing Brands from $78.00 to $58.00 and set an "overweight" rating for the company in a research note on Wednesday, August 6th. Evercore ISI decreased their price target on BellRing Brands from $82.00 to $64.00 and set an "outperform" rating for the company in a research note on Wednesday, August 6th. Finally, Mizuho decreased their price target on BellRing Brands from $75.00 to $45.00 and set an "outperform" rating for the company in a research note on Monday, August 18th. Thirteen analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, BellRing Brands currently has an average rating of "Moderate Buy" and an average price target of $64.80.

Insider Buying and Selling at BellRing Brands

In related news, insider Craig L. Rosenthal bought 2,600 shares of the firm's stock in a transaction on Wednesday, August 6th. The stock was bought at an average cost of $37.29 per share, for a total transaction of $96,954.00. Following the completion of the purchase, the insider directly owned 33,475 shares in the company, valued at approximately $1,248,282.75. The trade was a 8.42% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Darcy Horn Davenport sold 1,600 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $54.18, for a total value of $86,688.00. Following the transaction, the chief executive officer owned 193,978 shares of the company's stock, valued at approximately $10,509,728.04. This represents a 0.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders purchased 6,616 shares of company stock worth $65,995,248 and sold 11,200 shares worth $638,640. 1.07% of the stock is currently owned by insiders.

BellRing Brands Company Profile

BellRing Brands, Inc, together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels.

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