BellRing Brands, Inc. (NYSE: BRBR) saw its stock soar 5.04% in Thursday's trading session following the company's announcement of a new $600 million share repurchase authorization. The nutrition products maker's shares climbed to $30.6 in pre-market trading, reflecting investor enthusiasm for the buyback program.
The company's Board of Directors approved the $600 million share repurchase plan, which will be effective over the next two years starting from November 19, 2025. This new authorization replaces the previous $400 million program launched in September, under which BellRing had already repurchased approximately $123 million in stock.
Analysts view this move positively, as share buybacks typically signal management's confidence in the company's financial health and future prospects. The substantial size of the repurchase program, representing nearly 18% of BellRing's market capitalization, likely contributed to the strong market reaction. However, it's worth noting that TD Cowen cut its rating on BellRing to Hold from Buy, adjusting its target price to $31 from $37, which may temper some of the enthusiasm in the longer term.
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