BRC Inc. (NYSE:BRCC) Sees Large Decline in Short Interest

Key Points

• Short interest plunged 88.7% to 439,232 shares as of August 31, representing about 3.9% of BRCC’s float and 2.3 days to cover.
• Director Stephen Kadenacy sold 10,500 shares for $86,100, while institutional investors generally increased their holdings; insiders own 54.87% of the company and institutions own 16.29%.
• BRCC shares recently traded at $8.38, well below the $22.50 analyst consensus price target. Analysts maintain a “Moderate Buy” consensus, though ratings range from Buy to Sell.

BRC Inc. (NYSE:BRCC - Get Free Report) saw a large decrease in short interest in August. As of August 31st, there was short interest totaling 439,232 shares, a decrease of 88.7% from the August 15th total of 3,890,502 shares. Approximately 3.9% of the company's stock are sold short. Based on an average daily trading volume, of 188,952 shares, the days-to-cover ratio is currently 2.3 days.

Insider Activity

In related news, Director Stephen Kadenacy sold 10,500 shares of BRC stock in a transaction on Monday, August 17th. The stock was sold at an average price of $8.20, for a total value of $86,100.00. Following the completion of the transaction, the director directly owned 23,495 shares in the company, valued at approximately $192,659. This trade represents a 30.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 54.87% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of BRCC. Zazove Associates LLC increased its stake in BRC by 270.7% in the 1st quarter. Zazove Associates LLC now owns 2,000,000 shares of the company's stock valued at $1,552,000 after buying an additional 1,460,546 shares during the period. Prescott Group Capital Management L.L.C. acquired a new stake in shares of BRC during the 4th quarter valued at approximately $325,000. Squarepoint Ops LLC boosted its position in BRC by 53.8% during the second quarter. Squarepoint Ops LLC now owns 72,944 shares of the company's stock worth $81,000 after purchasing an additional 25,519 shares in the last quarter. Bank of America Corp DE boosted its position in shares of BRC by 9.2% in the 1st quarter. Bank of America Corp DE now owns 142,209 shares of the company's stock worth $110,000 after buying an additional 11,933 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of BRC by 96.1% in the fourth quarter. Invesco Ltd. now owns 30,140 shares of the company's stock valued at $33,000 after purchasing an additional 14,769 shares in the last quarter. Institutional investors and hedge funds own 16.29% of the company's stock.

BRC Stock Performance

Shares of NYSE BRCC traded down $0.06 during trading hours on Thursday, reaching $8.38. The stock had a trading volume of 68,798 shares, compared to its average volume of 145,933. The firm has a market cap of $209.63 million, a price-to-earnings ratio of -27.92 and a beta of 1.22. BRC has a fifty-two week low of $6.00 and a fifty-two week high of $18.55. The firm has a 50-day moving average of $9.92 and a 200-day moving average of $10.68. The company has a current ratio of 1.42, a quick ratio of 0.80 and a debt-to-equity ratio of 0.40.

Analysts Set New Price Targets

A number of research firms recently weighed in on BRCC. DA Davidson upped their target price on shares of BRC from $2.50 to $25.00 and gave the stock a "buy" rating in a research note on Monday, August 31st. Weiss Ratings downgraded shares of BRC from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Tuesday, August 4th. Wall Street Zen upgraded shares of BRC from a "hold" rating to a "buy" rating in a report on Saturday, May 23rd. Finally, Craig Hallum began coverage on shares of BRC in a research report on Monday, August 3rd. They issued a "buy" rating and a $17.50 price objective on the stock. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, BRC presently has a consensus rating of "Moderate Buy" and an average price target of $22.50.

About BRC

Black Rifle Coffee Company, Inc is a veteran-owned specialty coffee roaster and retailer that offers a range of coffee products, merchandise and subscription services. The company sources, roasts and distributes its own blends and single-origin coffees, as well as ready-to-drink beverages and branded apparel. Its product lineup includes whole-bean and ground coffees, cold brew concentrates, K-cup pods and limited-edition small-batch offerings designed to appeal to active lifestyle and patriotic consumers.

Founded in 2014 by U.S.

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