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

Key Points

• Driven Brands shares gapped higher, opening at $12.97 versus a prior close of $12.47, before trading at $12.84 on volume of 142,365 shares.
• Analysts maintain a generally positive but mixed view: the stock has a “Moderate Buy” consensus rating and an average price target of $16.43, despite recent downgrades and targets as low as $12.
• The company reported quarterly EPS of $0.29, with a 24.13% return on equity and an 8.61% net margin. Institutional investors own 77.08% of the stock.

Driven Brands Holdings Inc. (NASDAQ:DRVN - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $12.47, but opened at $12.97. Driven Brands shares last traded at $12.84, with a volume of 142,365 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on DRVN shares. Bank of America assumed coverage on Driven Brands in a report on Thursday, September 10th. They issued an "underperform" rating and a $12.00 target price for the company. Robert W. Baird set a $18.00 price target on shares of Driven Brands and gave the stock an "outperform" rating in a research note on Wednesday, May 20th. BMO Capital Markets cut their price target on shares of Driven Brands from $18.00 to $14.00 and set a "market perform" rating for the company in a report on Thursday, May 21st. Benchmark reiterated a "buy" rating on shares of Driven Brands in a research note on Tuesday, May 26th. Finally, Wall Street Zen downgraded shares of Driven Brands from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $16.43.

Driven Brands Stock Performance

The firm has a fifty day moving average of $13.70 and a 200-day moving average of $13.03. 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 $2.12 billion, a price-to-earnings ratio of 12.35, a PEG ratio of 2.10 and a beta of 0.94.

Driven Brands (NASDAQ:DRVN - Get Free Report) last posted its earnings results on Monday, July 27th. The company reported $0.29 earnings per share for the quarter. Driven Brands had a return on equity of 24.13% and a net margin of 8.61%. As a group, sell-side analysts anticipate that Driven Brands Holdings Inc. will post 1.12 EPS for the current year.

Institutional Investors Weigh In On Driven Brands

A number of large investors have recently added to or reduced their stakes in the business. ProShare Advisors LLC raised its position in Driven Brands by 6.9% during the fourth quarter. ProShare Advisors LLC now owns 10,917 shares of the company's stock worth $162,000 after acquiring an additional 701 shares during the last quarter. Comerica Bank lifted its holdings in shares of Driven Brands by 328.8% in the fourth quarter. Comerica Bank now owns 2,933 shares of the company's stock valued at $43,000 after purchasing an additional 2,249 shares in the last quarter. Larson Financial Group LLC grew its position in shares of Driven Brands by 1,347.7% in the fourth quarter. Larson Financial Group LLC now owns 3,822 shares of the company's stock valued at $57,000 after purchasing an additional 3,558 shares during the last quarter. SJS Investment Consulting Inc. grew its position in shares of Driven Brands by 420.2% in the first quarter. SJS Investment Consulting Inc. now owns 4,500 shares of the company's stock valued at $57,000 after purchasing an additional 3,635 shares during the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of Driven Brands by 0.3% during the 1st quarter. Janus Henderson Group PLC now owns 2,484,305 shares of the company's stock worth $31,327,000 after purchasing an additional 7,126 shares in the last quarter. 77.08% of the stock is owned by institutional investors and hedge funds.

Driven Brands Company Profile

Driven Brands Holdings Inc is an automotive services company that operates and franchises a network of businesses serving vehicle owners and commercial customers. Its services include routine vehicle maintenance, oil changes, automotive repair, collision repair, paint and glass services, and car washing.

The company's portfolio includes brands such as Take 5 Oil Change, Meineke Car Care Centers, MAACO, CARSTAR, and Fix Auto. Through these brands, Driven Brands provides services ranging from preventative maintenance and mechanical repairs to bodywork, paint repair, windshield replacement, and vehicle appearance care.

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