Driven Brands (NASDAQ:DRVN) Shares Gap Down - Here's Why

Key Points

• Driven Brands shares fell sharply, opening at $10.75 versus a prior close of $12.72 and last trading around $11.19, a decline of roughly 14.2%.
• Analyst views remain mixed: the consensus rating is “Hold” with an average price target of $16.23, although several firms maintain Buy or Outperform ratings.
• Driven Brands reported quarterly EPS of $0.29, while institutional investors own 77.08% of the company; analysts expect full-year EPS of approximately $1.13.

Driven Brands Holdings Inc. (NASDAQ:DRVN - Get Free Report)'s share price gapped down before the market opened on Tuesday. The stock had previously closed at $12.72, but opened at $10.75. Driven Brands shares last traded at $11.1930, with a volume of 266,009 shares traded.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Royal Bank Of Canada decreased their target price on Driven Brands from $17.00 to $16.00 and set an "outperform" rating on the stock in a report on Friday, August 7th. Canaccord Genuity Group raised their price target on Driven Brands from $17.00 to $18.00 and gave the company a "buy" rating in a report on Thursday, September 10th. Morgan Stanley set a $14.00 price objective on shares of Driven Brands in a research report on Friday, August 7th. UBS Group reiterated a "buy" rating on shares of Driven Brands in a report on Thursday, September 10th. Finally, Bank of America initiated coverage on shares of Driven Brands in a research note on Thursday, September 10th. They set an "underperform" rating and a $12.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $16.23.

Driven Brands Stock Down 14.2%

The firm has a 50 day simple moving average of $12.19 and a two-hundred day simple moving average of $13.29. The company has a quick ratio of 1.33, a current ratio of 1.47 and a debt-to-equity ratio of 1.99. The stock has a market capitalization of $1.80 billion, a P/E ratio of 10.56, a PEG ratio of 2.02 and a beta of 0.96.

Driven Brands (NASDAQ:DRVN - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The company reported $0.29 earnings per share (EPS) for the quarter. Driven Brands had a net margin of 8.61% and a return on equity of 24.13%. On average, equities research analysts expect that Driven Brands Holdings Inc. will post 1.13 earnings per share for the current year.

Institutional Investors Weigh In On Driven Brands

Hedge funds have recently added to or reduced their stakes in the business. Bfsg LLC lifted its holdings in Driven Brands by 22.2% in the 3rd quarter. Bfsg LLC now owns 10,094 shares of the company's stock worth $119,000 after buying an additional 1,835 shares during the period. Rockefeller Capital Management L.P. increased its stake in shares of Driven Brands by 3,373.1% during the fourth quarter. Rockefeller Capital Management L.P. now owns 10,975 shares of the company's stock valued at $163,000 after buying an additional 10,659 shares during the period. Pictet Asset Management Holding SA purchased a new position in shares of Driven Brands during the first quarter valued at approximately $159,000. Vise Technologies Inc. bought a new position in shares of Driven Brands during the second quarter valued at approximately $248,000. Finally, Engineers Gate Manager LP purchased a new stake in Driven Brands in the second quarter worth about $310,000. 77.08% of the stock is currently owned by institutional investors.

Driven Brands Company Profile

Driven Brands Holdings Inc is an automotive services company that provides vehicle maintenance, repair, collision services and related products through a portfolio of franchised and company-operated brands. Its businesses serve both individual vehicle owners and commercial customers across a range of automotive aftermarket needs.

The company's brands include Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C and Auto Glass Now. These brands provide services such as oil changes, routine maintenance, mechanical repair, paint and collision repair, replacement parts distribution and windshield repair and replacement.

Driven Brands was founded in 1972 and is headquartered in Charlotte, North Carolina.

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