Driven Brands (NASDAQ:DRVN) Hits New 12-Month Low – Here’s What Happened

Driven Brands Holdings Inc. (NASDAQ:DRVN)’s stock price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $9.80 and last traded at $10.7910, with a volume of 3443197 shares. The stock had previously closed at $16.61.

Key Headlines Impacting Driven Brands

Here are the key news stories impacting Driven Brands this week:

• Neutral Sentiment: Latest quarterly report showed a small EPS and revenue miss (reported $0.30 EPS vs. $0.32 consensus; revenue $457.3M vs. $459.5M) and a negative net margin — a modest operational miss that alone would be manageable but adds to investor concern amid the restatement.
• Negative Sentiment: The company announced it will restate certain previously issued financial statements and called off its planned earnings release, creating uncertainty about historical results and near‑term guidance. DRIVEN BRANDS HOLDINGS INC. INVESTOR ALERT
• Negative Sentiment: Multiple prominent plaintiff law firms and securities litigators have launched investigations and investor alerts (Faruqi & Faruqi, Robbins Geller, Kirby McInerney, Pomerantz, Glancy Prongay, Rosen, Halper Sadeh, Ademi, others) seeking clients and witnesses — this raises the prospect of litigation, regulatory scrutiny and potential settlement or remediation costs. DRVN SHAREHOLDER ALERT: Faruqi & Faruqi, LLP
• Negative Sentiment: Market reaction has already been severe: the stock experienced a sharp intraday decline after the earnings delay/restatement announcement, reflecting increased investor risk aversion and likely higher volatility going forward. Driven Brands Nosedives After Earnings Delay

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. William Blair upgraded Driven Brands from a “market perform” rating to an “outperform” rating in a research report on Wednesday, December 3rd. Zacks Research cut Driven Brands from a “hold” rating to a “strong sell” rating in a report on Wednesday, January 21st. Piper Sandler downgraded Driven Brands from an “overweight” rating to a “neutral” rating and lowered their price objective for the company from $19.00 to $12.00 in a research note on Wednesday. JPMorgan Chase & Co. cut their target price on shares of Driven Brands from $23.00 to $21.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 12th. Finally, Benchmark restated a “buy” rating on shares of Driven Brands in a research report on Wednesday, December 3rd. Five equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Driven Brands currently has an average rating of “Hold” and an average price target of $20.56.

Driven Brands Price Performance

The firm has a market cap of $1.81 billion, a P/E ratio of -8.87, a P/E/G ratio of 0.85 and a beta of 1.04. The company has a quick ratio of 0.80, a current ratio of 0.90 and a debt-to-equity ratio of 2.44. The business’s 50 day moving average is $15.65 and its two-hundred day moving average is $15.82.

Driven Brands (NASDAQ:DRVN) last issued its quarterly earnings results on Wednesday, March 4th. The company reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02). Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%.The business had revenue of $457.33 million for the quarter, compared to analyst estimates of $459.50 million. During the same quarter in the previous year, the business posted $0.30 earnings per share. As a group, analysts anticipate that Driven Brands Holdings Inc. will post 0.85 earnings per share for the current year.

Insider Transactions at Driven Brands

In other Driven Brands news, insider Scott L. O’melia sold 46,875 shares of the business’s stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $16.00, for a total value of $750,000.00. Following the transaction, the insider directly owned 326,944 shares of the company’s stock, valued at approximately $5,231,104. The trade was a 12.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.50% of the company’s stock.

Institutional Investors Weigh In On Driven Brands

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Osaic Holdings Inc. raised its holdings in shares of Driven Brands by 82.1% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock valued at $37,000 after purchasing an additional 941 shares during the period. EverSource Wealth Advisors LLC increased its position in Driven Brands by 744.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock valued at $37,000 after buying an additional 1,854 shares in the last quarter. Comerica Bank raised its stake in Driven Brands by 328.8% during the 4th quarter. Comerica Bank now owns 2,933 shares of the company’s stock worth $43,000 after buying an additional 2,249 shares during the period. Farther Finance Advisors LLC boosted its holdings in Driven Brands by 1,113.8% in the third quarter. Farther Finance Advisors LLC now owns 3,338 shares of the company’s stock worth $54,000 after acquiring an additional 3,063 shares in the last quarter. Finally, Larson Financial Group LLC boosted its holdings in Driven Brands by 1,347.7% in the fourth quarter. Larson Financial Group LLC now owns 3,822 shares of the company’s stock worth $57,000 after acquiring an additional 3,558 shares in the last quarter. 77.08% of the stock is owned by institutional investors.

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.