Is BellRing Brands Inc. (BRBR) A Risky Investment?

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BellRing Brands Inc. (NYSE:BRBR) finished Friday with a subtraction of -$0.33 to close at $25.64, a downside of -1.27 percent. An average of 622,700 shares of common stock have been traded in the last five days. There was a gain of $0.29 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 911,585 shares traded, while the 50-day average volume stands at 956,810.

BRBR stock has increased by 2.93% in the last month. The company shares reached their 1-month lowest point of $24.21 on 12/16/22. With the stock rallying to its 52-week high on 03/07/22, shares of the company touched a low of $20.20 and a high of $29.09 in 52 weeks. It has reached a new high 3 times so far this year and lost -10.13% or -$2.89 in price. In spite of this, the price is down -11.86% from the 52-week high.

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Valuation Metrics

BellRing Brands Inc. (BRBR) has a trailing price-to-earnings (P/E) ratio of 33.56. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.52, and the price-to-cash flow ratio at 180.08.

Financial Health

The quick ratio of BellRing Brands Inc. for the three months ended September 29 was 1.50, and the current ratio was 2.90, indicating that the company is able to meet its debt obligations. Its gross profit as reported stood at $421.8 million compared to revenue of $1.37 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, BellRing Brands Inc.’s return on assets was 12.30%.

Earnings Surprise

For the three-month period that ended September 29, BellRing Brands Inc. had $929.5 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $33.7 million in the quarter, while revenues of $39.1 million were grew 71.22%. The analyst consensus anticipated BellRing Brands Inc.’s latest quarter earnings to come in at $0.29 per share, but it turned out to be $0.31, a 6.90% surprise.

Technical Picture

From a technical analysis perspective, let’s take a brief look at BellRing Brands Inc. (BRBR) price momentum. RSI 9-day as of the close on 30 December was 54.31%, suggesting the stock is Neutral, with historical volatility in this time frame at 27.19%.

As of today, BRBR’s price is $25.75 +1.14% or $0.29 from its 5-day moving average. BRBR is currently trading +1.26% higher than its 20-day SMA and +8.23% higher than its 100-day SMA. However, the stock’s current price level is +20.32% above the SMA50 and +2.64% above the SMA200.

The stochastic %K and %D were 70.80% and 73.17%, respectively, and the average true range (ATR) was 0.83. With the 14-day stochastic at 65.60% and the average true range at 0.88, the RSI (14) stands at 54.50%. The stock has reached 0.23 on the 9-day MACD Oscillator while the 14-day reading was at 0.44.

Analyst Ratings

Needham launched coverage on BellRing Brands Inc. (NYSE: BRBR) in its analyst report released on December 14, 2022. The firm assigned the stock a Buy rating. The consensus rating for BellRing Brands Inc. (BRBR) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BRBR, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 13 others rate it as a “buy”.

What is BRBR’s price target for the next 12 months?

Analysts predict a range of price targets between $25.00 and $40.00, with a median target of $31.00. Taking a look at these predictions, the average price target given by analysts for BellRing Brands Inc. (BRBR) stock is $31.69.

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