Driven Brands (NASDAQ:DRVN) Shares Gap Up After Earnings Beat

Driven Brands Holdings Inc. (NASDAQ:DRVN) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $13.54, but opened at $14.25. Driven Brands shares last traded at $13.7350, with a volume of 203,423 shares trading hands.

The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.24 by $0.06. The company had revenue of $484.44 million for the quarter, compared to analyst estimates of $454.91 million. Driven Brands had a net margin of 6.55% and a return on equity of 25.83%. Driven Brands’s revenue was down 6.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.27 earnings per share.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on DRVN. Morgan Stanley cut their target price on Driven Brands from $17.00 to $16.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 20th. Zacks Research raised Driven Brands from a “strong sell” rating to a “hold” rating in a research note on Thursday, March 19th. BMO Capital Markets lowered their price target on Driven Brands from $18.00 to $14.00 and set a “market perform” rating on the stock in a report on Thursday, May 21st. BTIG Research cut their price objective on shares of Driven Brands from $21.00 to $17.00 and set a “buy” rating on the stock in a research note on Wednesday, May 20th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and issued a $14.75 target price on shares of Driven Brands in a research report on Wednesday, May 20th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Driven Brands has a consensus rating of “Moderate Buy” and a consensus price target of $17.28.

Hedge Funds Weigh In On Driven Brands

Several hedge funds have recently modified their holdings of the company. Lazard Asset Management LLC raised its stake in shares of Driven Brands by 0.3% in the 2nd quarter. Lazard Asset Management LLC now owns 216,423 shares of the company’s stock worth $3,800,000 after buying an additional 682 shares in the last quarter. ProShare Advisors LLC boosted its stake in Driven Brands by 6.9% during the fourth quarter. ProShare Advisors LLC now owns 10,917 shares of the company’s stock valued at $162,000 after buying an additional 701 shares in the last quarter. Mariner LLC grew its holdings in Driven Brands by 1.1% during the fourth quarter. Mariner LLC now owns 71,736 shares of the company’s stock worth $1,063,000 after acquiring an additional 812 shares during the period. Osaic Holdings Inc. grew its holdings in Driven Brands by 82.1% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock worth $37,000 after acquiring an additional 941 shares during the period. Finally, Vident Advisory LLC raised its position in Driven Brands by 8.0% in the fourth quarter. Vident Advisory LLC now owns 19,620 shares of the company’s stock worth $291,000 after acquiring an additional 1,458 shares in the last quarter. 77.08% of the stock is currently owned by institutional investors and hedge funds.

Driven Brands Trading Down 0.1%

The company has a quick ratio of 0.67, a current ratio of 0.75 and a debt-to-equity ratio of 2.45. The stock has a market capitalization of $2.23 billion, a P/E ratio of 16.30 and a beta of 0.97. The firm’s 50-day simple moving average is $13.08 and its 200 day simple moving average is $13.93.

About Driven Brands

Driven Brands Holdings Inc (NASDAQ: DRVN) is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company’s platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.