Rubric Capital Management LP Makes New $37.83 Million Investment in Driven Brands Holdings Inc. $DRVN

Key Points

• Rubric Capital Management purchased 3 million shares of Driven Brands, worth approximately $37.83 million, giving it an 1.82% stake. Institutional investors collectively own 77.08% of the company.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $17.18, compared with its reported opening price of $14.37.
• Driven Brands beat quarterly earnings expectations, reporting $0.30 in EPS versus a $0.24 consensus and $484.44 million in revenue, although revenue declined 6.2% year over year.

Rubric Capital Management LP purchased a new stake in Driven Brands Holdings Inc. (NASDAQ:DRVN - Free Report) in the first quarter, according to its most recent filing with the SEC. The fund purchased 3,000,000 shares of the company's stock, valued at approximately $37,830,000. Rubric Capital Management LP owned about 1.82% of Driven Brands at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Driven Brands by 5.2% during the fourth quarter. Vanguard Group Inc. now owns 5,851,225 shares of the company's stock valued at $86,715,000 after purchasing an additional 288,759 shares during the last quarter. North Peak Capital Management LLC grew its position in shares of Driven Brands by 37.3% during the 4th quarter. North Peak Capital Management LLC now owns 3,990,850 shares of the company's stock valued at $59,144,000 after buying an additional 1,083,896 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Driven Brands by 14.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,826,160 shares of the company's stock worth $56,704,000 after acquiring an additional 491,919 shares during the period. Boston Partners raised its stake in Driven Brands by 1,301.0% during the fourth quarter. Boston Partners now owns 3,426,388 shares of the company's stock worth $50,783,000 after acquiring an additional 3,181,812 shares during the period. Finally, JPMorgan Chase & Co. lifted its holdings in Driven Brands by 2.7% in the fourth quarter. JPMorgan Chase & Co. now owns 3,234,369 shares of the company's stock worth $47,933,000 after acquiring an additional 86,281 shares during the last quarter. 77.08% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Wall Street Zen upgraded Driven Brands from a "hold" rating to a "buy" rating in a research note on Saturday. William Blair cut Driven Brands from an "outperform" rating to a "hold" rating in a research report on Wednesday, April 22nd. Canaccord Genuity Group set a $18.00 price target on Driven Brands in a report on Monday, June 8th. BMO Capital Markets reduced their price objective on Driven Brands from $18.00 to $14.00 and set a "market perform" rating for the company in a research report on Thursday, May 21st. Finally, Robert W. Baird set a $18.00 price objective on Driven Brands and gave the stock an "outperform" rating in a research note on Wednesday, May 20th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $17.18.

Driven Brands Price Performance

NASDAQ DRVN opened at $14.37 on Tuesday. Driven Brands Holdings Inc. has a 52 week low of $9.80 and a 52 week high of $19.74. The company has a current ratio of 1.38, a quick ratio of 1.25 and a debt-to-equity ratio of 2.08. The stock has a market cap of $2.37 billion, a price-to-earnings ratio of 12.83 and a beta of 0.96. The company has a 50-day moving average price of $13.90 and a two-hundred day moving average price of $13.76.

Driven Brands (NASDAQ:DRVN - Get Free Report) last released its quarterly earnings results on Thursday, June 11th. The company reported $0.30 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.06. The company had revenue of $484.44 million for the quarter, compared to analysts' expectations of $480.84 million. Driven Brands had a return on equity of 25.70% and a net margin of 9.08%.The business's revenue for the quarter was down 6.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.27 earnings per share. Analysts forecast that Driven Brands Holdings Inc. will post 1.08 EPS for the current year.

About Driven Brands

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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