Driven Brands (NASDAQ:DRVN) Shares Gap Down – Should You Sell?

Driven Brands Holdings Inc. (NASDAQ:DRVN)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $13.04, but opened at $11.82. Driven Brands shares last traded at $12.7070, with a volume of 374,308 shares traded.

Key Stories Impacting Driven Brands

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

• Neutral Sentiment: William Blair reaffirmed a “market perform” rating on Driven Brands; this provides some analyst stability but no bullish upgrade. Benzinga
• Neutral Sentiment: Investors can review the company’s recent Q3 2025 earnings call/transcript for management commentary and detail on operations and outlook — useful background but not a catalyst on its own. Earnings Transcript
• Negative Sentiment: Driven Brands issued preliminary unaudited results and an update on its SEC filing status while guiding Q4 2025, Q1 2026 and FY2025 revenue below consensus — a clear near‑term revenue miss that pressures near‑term EPS expectations and investor sentiment. Business Wire: Preliminary Results & Filing Update
• Negative Sentiment: The company faces multiple securities‑fraud class actions and investigator notices after disclosing widespread accounting errors and internal control failures — litigation risk, potential restatements and executive scrutiny are material downside risks. GlobeNewswire: Class Action Notice
• Negative Sentiment: Several law firms (Levi & Korsinsky, Faruqi, Hagens Berman, others) are soliciting lead‑plaintiff candidates and investor claims, and they cite the CFO and other executives — increased legal activity and potential claims amplify uncertainty and could lead to further stock weakness. PR Newswire: Levi & Korsinsky Investor Alert

Analyst Upgrades and Downgrades

Several research firms recently issued reports on DRVN. Morgan Stanley decreased 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 report on Thursday, January 15th. William Blair reissued a “market perform” rating on shares of Driven Brands in a research report on Wednesday. BTIG Research reissued a “buy” rating and issued a $21.00 target price on shares of Driven Brands in a research report on Thursday, January 8th. Weiss Ratings reissued a “sell (d)” rating on shares of Driven Brands in a research report on Friday, March 27th. Finally, Zacks Research raised Driven Brands from a “strong sell” rating to a “hold” rating in a research note on Thursday, March 19th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $19.71.

Driven Brands Stock Down 2.3%

The firm has a 50 day moving average price of $12.79 and a two-hundred day moving average price of $14.30. The firm has a market capitalization of $2.09 billion, a price-to-earnings ratio of -10.35 and a beta of 1.01. The company has a current ratio of 0.90, a quick ratio of 0.80 and a debt-to-equity ratio of 2.44.

Hedge Funds Weigh In On Driven Brands

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Driven Brands by 5.2% during the 4th quarter. Vanguard Group Inc. now owns 5,851,225 shares of the company’s stock worth $86,715,000 after acquiring an additional 288,759 shares in the last quarter. North Peak Capital Management LLC lifted its position in Driven Brands by 37.3% during the 4th quarter. North Peak Capital Management LLC now owns 3,990,850 shares of the company’s stock worth $59,144,000 after acquiring an additional 1,083,896 shares in the last quarter. Emeth Value Capital LLC lifted its position in Driven Brands by 17.8% during the 4th quarter. Emeth Value Capital LLC now owns 3,846,166 shares of the company’s stock worth $57,000,000 after acquiring an additional 582,255 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Driven Brands by 14.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,826,160 shares of the company’s stock worth $56,704,000 after acquiring an additional 491,919 shares in the last quarter. Finally, Boston Partners lifted its position in Driven Brands by 1,301.0% during the 4th quarter. Boston Partners now owns 3,426,388 shares of the company’s stock worth $50,783,000 after acquiring an additional 3,181,812 shares in the last quarter. 77.08% of the stock is owned by institutional investors and hedge funds.

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.