BellRing Brands (NYSE:BRBR) Stock Jumps 7.7% - Still a Buy?

Key Points

• BellRing Brands shares jumped 7.7% to about $9.85 in Thursday trading, although volume was 89% below the stock’s average daily level.
• Analyst sentiment is mixed: the stock has 10 Buy, seven Hold and two Sell ratings, producing an average Hold rating and a consensus price target of $18.70.
• The company exceeded revenue expectations with $570.4 million in quarterly sales, up 4.2% year over year, but missed EPS estimates ($0.30 versus $0.37) and reported a negative 33.04% return on equity.

BellRing Brands Inc. (NYSE:BRBR - Get Free Report)'s stock price rose 7.7% during trading on Thursday. The company traded as high as $9.73 and last traded at $9.8450. 465,625 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 4,415,759 shares. The stock had previously closed at $9.14.

Wall Street Analyst Weigh In

Several research firms have weighed in on BRBR. Stephens reissued an "overweight" rating and issued a $20.00 price target on shares of BellRing Brands in a research note on Thursday, July 9th. Stifel Nicolaus upped their price target on shares of BellRing Brands from $14.00 to $15.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Zacks Research cut BellRing Brands from a "hold" rating to a "strong sell" rating in a research note on Wednesday, October 14th. Weiss Ratings reissued a "sell (d)" rating on shares of BellRing Brands in a research note on Tuesday, October 6th. Finally, DA Davidson increased their target price on BellRing Brands from $13.00 to $15.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Ten equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, BellRing Brands presently has an average rating of "Hold" and a consensus target price of $18.70.

BellRing Brands Price Performance

The stock has a market capitalization of $1.13 billion, a P/E ratio of 6.84, a P/E/G ratio of 4.43 and a beta of 0.43. The firm's 50 day moving average price is $9.31 and its 200 day moving average price is $11.08.

BellRing Brands (NYSE:BRBR - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.37 by ($0.07). BellRing Brands had a net margin of 7.28% and a negative return on equity of 33.04%. The business had revenue of $570.40 million for the quarter, compared to analysts' expectations of $548.72 million. During the same quarter in the prior year, the firm earned $0.55 EPS. The firm's revenue for the quarter was up 4.2% on a year-over-year basis. On average, equities research analysts forecast that BellRing Brands Inc. will post 1.03 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Parallel Advisors LLC lifted its position in shares of BellRing Brands by 52.2% in the 1st quarter. Parallel Advisors LLC now owns 3,232 shares of the company's stock worth $52,000 after purchasing an additional 1,109 shares during the period. IFP Advisors Inc increased its position in shares of BellRing Brands by 279.4% during the second quarter. IFP Advisors Inc now owns 3,957 shares of the company's stock valued at $51,000 after buying an additional 2,914 shares during the period. EverSource Wealth Advisors LLC raised its stake in BellRing Brands by 67.5% in the first quarter. EverSource Wealth Advisors LLC now owns 4,488 shares of the company's stock worth $72,000 after buying an additional 1,809 shares in the last quarter. Versant Capital Management Inc raised its stake in BellRing Brands by 336.0% in the third quarter. Versant Capital Management Inc now owns 4,643 shares of the company's stock worth $36,000 after buying an additional 3,578 shares in the last quarter. Finally, Nykredit A S purchased a new stake in BellRing Brands in the second quarter worth about $65,000. 94.97% of the stock is owned by hedge funds and other institutional investors.

About BellRing Brands

BellRing Brands, Inc is a consumer nutrition company that develops, markets and sells protein-focused products. Its portfolio is led by Premier Protein, which offers ready-to-drink protein shakes, protein bars, powders and other nutrition products, and Dymatize, a sports nutrition brand known for protein powders, supplements and related products.

The company sells its products through a range of retail and e-commerce channels, including grocery, mass retail, club, drug and specialty nutrition outlets.

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