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

Driven Brands Holdings Inc. (NASDAQ:DRVN)’s share price gapped down prior to trading on Wednesday after Piper Sandler lowered their price target on the stock from $12.00 to $11.00. The stock had previously closed at $13.04, but opened at $11.82. Piper Sandler currently has a neutral rating on the stock. Driven Brands shares last traded at $12.7070, with a volume of 374,308 shares changing hands.

Several other research analysts have also recently weighed in on the stock. Freedom Capital upgraded shares of Driven Brands to a “strong-buy” rating in a research report on Monday, March 23rd. Weiss Ratings restated a “sell (d)” rating on shares of Driven Brands in a research report on Friday, March 27th. The Goldman Sachs Group restated a “neutral” rating on shares of Driven Brands in a research report on Wednesday. William Blair lowered shares of Driven Brands from an “outperform” rating to a “hold” rating in a research report on Wednesday. Finally, BTIG Research restated a “buy” rating and set a $21.00 target price on shares of Driven Brands in a research report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Driven Brands presently has a consensus rating of “Hold” and a consensus target price of $19.57.

Driven Brands News Roundup

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

• Neutral Sentiment: Q3 2025 earnings transcript is available (background on recent results and management comments). Q3 2025 Earnings Transcript
• Negative Sentiment: Company disclosed it is unable to file required financial reports and received a Nasdaq notice of non‑compliance — a regulatory red flag that increases uncertainty about timing of results and listing status. Hagens Berman Update
• Negative Sentiment: Multiple law firms have filed or announced investigations/class actions alleging securities fraud tied to alleged accounting errors and internal control failures; firms are soliciting lead‑plaintiff applicants ahead of a May 8, 2026 deadline — this raises potential for costly litigation, settlements, and management distraction. BFA Law Class Action Notice
• Negative Sentiment: Numerous additional plaintiff firms (Rosen, Faruqi & Faruqi, Levi & Korsinsky, Glancy, Schall, Bronstein, etc.) have issued alerts and reminders about the lead‑plaintiff deadline — amplifying headline risk and potential investor claims. Rosen Law Firm Notice
• Negative Sentiment: Sell‑side pressure: William Blair downgraded DRVN from “Outperform” to “Hold,” which can reduce analyst support and investor confidence following the company disclosures. William Blair Downgrade

Hedge Funds Weigh In On Driven Brands

A number of institutional investors and hedge funds have recently bought and sold shares of DRVN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Driven Brands by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,597 shares of the company’s stock worth $610,000 after purchasing an additional 1,493 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Driven Brands by 22.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 139,321 shares of the company’s stock worth $2,388,000 after purchasing an additional 25,806 shares during the period. New York State Common Retirement Fund lifted its holdings in shares of Driven Brands by 10.0% during the second quarter. New York State Common Retirement Fund now owns 16,511 shares of the company’s stock worth $290,000 after purchasing an additional 1,500 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Driven Brands by 95.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 255,156 shares of the company’s stock worth $4,481,000 after purchasing an additional 124,556 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Driven Brands by 744.6% during the second quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock worth $37,000 after purchasing an additional 1,854 shares during the period. Institutional investors and hedge funds own 77.08% of the company’s stock.

Driven Brands Trading Down 2.0%

The company has a market cap of $2.04 billion, a price-to-earnings ratio of -9.99 and a beta of 1.01. The business’s fifty day moving average price is $12.62 and its 200 day moving average price is $14.27. The company has a debt-to-equity ratio of 2.44, a current ratio of 0.90 and a quick ratio of 0.80.

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.