Driven Brands Holdings Inc. (NASDAQ:DRVN) Receives Consensus Rating of “Hold” from Brokerages

Shares of Driven Brands Holdings Inc. (NASDAQ:DRVN) have earned an average rating of “Hold” from the ten brokerages that are covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and five have issued a buy rating on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $20.5556.

A number of brokerages have commented on DRVN. Morgan Stanley dropped their target price on shares of Driven Brands from $20.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 15th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Driven Brands in a research note on Monday, December 29th. Zacks Research lowered Driven Brands from a “hold” rating to a “strong sell” rating in a report on Wednesday, January 21st. William Blair raised Driven Brands from a “market perform” rating to an “outperform” rating in a research note on Wednesday, December 3rd. Finally, Wall Street Zen downgraded Driven Brands from a “buy” rating to a “hold” rating in a report on Saturday, December 13th.

Driven Brands Stock Down 4.2%

NASDAQ:DRVN opened at $10.48 on Monday. The company has a market cap of $1.72 billion, a price-to-earnings ratio of -8.45 and a beta of 1.09. Driven Brands has a twelve month low of $9.80 and a twelve month high of $19.74. The company has a current ratio of 0.90, a quick ratio of 0.80 and a debt-to-equity ratio of 2.44. The stock has a fifty day simple moving average of $15.17 and a 200-day simple moving average of $15.56.

Driven Brands (NASDAQ:DRVN) last posted its quarterly earnings results on Monday, March 9th. The company reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.01. The firm had revenue of $457.33 million for the quarter, compared to analysts’ expectations of $459.50 million. Driven Brands had a negative net margin of 9.14% and a positive return on equity of 25.31%. During the same period in the prior year, the business posted $0.30 earnings per share. Analysts anticipate that Driven Brands will post 0.85 EPS for the current year.

Key Headlines Impacting Driven Brands

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

• Positive Sentiment: Quarterly operating result showed a small EPS beat ($0.30 vs. $0.29 consensus), which provides a limited near-term fundamental offset to the disclosure-driven selloff.
• Neutral Sentiment: Reported short-interest data for early March appears anomalous/unclear (zero shares reported), so the short-squeeze or short-pressure signal is inconclusive for now.
• Negative Sentiment: Disclosure of improper accounting and pending restatements is linked to a >30% share drop and an estimated >$800M market-cap decline—this is the primary catalyst driving the stock lower. Driven Brands (DRVN) $800 Million Market Cap Wipeout
• Negative Sentiment: Multiple law firms have launched securities-fraud investigations alleging inaccurate statements and improper reporting; potential litigation increases future cash/legal risk and management distraction. Example filings include Ademi LLP and Faruqi & Faruqi. Ademi LLP Investigation Faruqi & Faruqi Investigation
• Negative Sentiment: Additional plaintiff-side firms (Pomerantz, BFA Law, Wolf Haldenstein, Levi & Korsinsky) are investigating and soliciting claimants—more firms increase probability of class-action filings and collective claims. Representative links: Pomerantz and Levi & Korsinsky. Pomerantz Investigation Levi & Korsinsky Investigation
• Negative Sentiment: Market commentary and analysis (e.g., Yahoo Finance) highlight major accounting errors, restatements and the changed bull case; media coverage can amplify selling pressure until clarity on restatements and controls is provided. Yahoo Finance Coverage

Insider Activity

In other news, insider Scott L. O’melia sold 46,875 shares of the stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $16.00, for a total transaction of $750,000.00. Following the transaction, the insider owned 326,944 shares of the company’s stock, valued at approximately $5,231,104. This represents a 12.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 3.50% of the company’s stock.

Institutional Trading of Driven Brands

Institutional investors and hedge funds have recently made changes to their positions in the company. North Peak Capital Management LLC lifted its stake in Driven Brands by 9.0% in the second quarter. North Peak Capital Management LLC now owns 7,123,075 shares of the company’s stock worth $125,081,000 after acquiring an additional 589,556 shares during the period. Vanguard Group Inc. raised its holdings in shares of Driven Brands by 5.2% in the 4th quarter. Vanguard Group Inc. now owns 5,851,225 shares of the company’s stock valued at $86,715,000 after purchasing an additional 288,759 shares in the last quarter. Emeth Value Capital LLC raised its holdings in shares of Driven Brands by 17.8% in the 4th quarter. Emeth Value Capital LLC now owns 3,846,166 shares of the company’s stock valued at $57,000,000 after purchasing an additional 582,255 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Driven Brands by 14.8% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,826,160 shares of the company’s stock worth $56,704,000 after purchasing an additional 491,919 shares during the period. Finally, Boston Partners lifted its position in shares of Driven Brands by 1,301.0% in the 4th quarter. Boston Partners now owns 3,426,388 shares of the company’s stock worth $50,783,000 after purchasing an additional 3,181,812 shares during the period. 77.08% of the stock is currently owned by institutional investors.

Driven Brands Company Profile

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.