Driven Brands (NASDAQ:DRVN) Shares Gap Down Following Analyst Downgrade

Shares of Driven Brands Holdings Inc. (NASDAQ:DRVN) gapped down prior to trading on Friday after Canaccord Genuity Group lowered their price target on the stock from $21.00 to $17.00. The stock had previously closed at $11.69, but opened at $11.35. Canaccord Genuity Group currently has a buy rating on the stock. Driven Brands shares last traded at $11.86, with a volume of 589,486 shares.

A number of other research analysts have also commented on DRVN. Royal Bank of Canada lowered their price target on Driven Brands from $20.00 to $17.00 and set an “outperform” rating on the stock in a report on Monday, February 26th. JPMorgan Chase & Co. lowered shares of Driven Brands from an “overweight” rating to a “neutral” rating and reduced their price target for the stock from $18.00 to $12.50 in a research note on Friday. Morgan Stanley cut shares of Driven Brands from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $22.00 to $14.00 in a report on Tuesday, January 16th. Piper Sandler dropped their target price on Driven Brands from $18.00 to $14.00 and set an “overweight” rating on the stock in a report on Friday. Finally, The Goldman Sachs Group decreased their price target on Driven Brands from $16.00 to $14.00 and set a “neutral” rating for the company in a research note on Friday. Five research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.94.

Institutional Trading of Driven Brands

Several institutional investors and hedge funds have recently bought and sold shares of DRVN. Cambridge Investment Research Advisors Inc. purchased a new position in shares of Driven Brands in the third quarter worth approximately $783,000. Bank of New York Mellon Corp boosted its position in shares of Driven Brands by 2.6% in the third quarter. Bank of New York Mellon Corp now owns 208,008 shares of the company’s stock worth $2,619,000 after buying an additional 5,238 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Driven Brands by 27.8% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 10,391 shares of the company’s stock valued at $131,000 after buying an additional 2,259 shares in the last quarter. Signaturefd LLC raised its position in Driven Brands by 6,787.0% during the third quarter. Signaturefd LLC now owns 6,887 shares of the company’s stock valued at $87,000 after buying an additional 6,787 shares during the period. Finally, Jump Financial LLC purchased a new stake in Driven Brands in the 3rd quarter worth about $2,658,000. Institutional investors and hedge funds own 77.08% of the company’s stock.

Driven Brands Price Performance

The company has a current ratio of 1.92, a quick ratio of 1.73 and a debt-to-equity ratio of 3.21. The stock has a 50-day simple moving average of $14.59 and a 200 day simple moving average of $13.54. The stock has a market capitalization of $1.90 billion, a price-to-earnings ratio of -2.56, a price-to-earnings-growth ratio of 0.91 and a beta of 1.19.

Driven Brands (NASDAQ:DRVN) last posted its quarterly earnings results on Thursday, February 22nd. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.16 by $0.03. The business had revenue of $553.70 million during the quarter, compared to analysts’ expectations of $572.92 million. Driven Brands had a negative net margin of 32.33% and a positive return on equity of 11.00%. The firm’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same period last year, the company posted $0.22 earnings per share. On average, equities research analysts forecast that Driven Brands Holdings Inc. will post 0.88 EPS for the current fiscal year.

Driven Brands Company Profile

Driven Brands Holdings Inc, together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops.