BellRing Brands: A Spot of Bother?

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It appears a certain Wilson Asset Management, a firm of perfectly respectable chaps, have decided to part ways with their holdings in BellRing Brands. A complete disposal, you understand – every last share sent packing. Some 114,425 of them, to be precise, representing a sum of approximately $4.16 million. A bit of a heave-ho, wouldn’t you say? One might almost suspect a touch of the jitters, though I daresay they’d frame it as a shrewd bit of portfolio housekeeping.

What’s the Fuss, Really?

According to the official paperwork filed with the Securities and Exchange Commission – a body renowned for its fondness for detail – Wilson Asset Management has, as previously mentioned, given BellRing Brands the thumbs-down. The transaction, naturally, involved a bit of arithmetic, factoring in both the sale itself and any fluctuations in the market price. A most thorough process, I assure you.

A Peek at the Portfolio

While dispensing with BellRing, our friends at Wilson Asset Management appear to be rather sweet on a few other enterprises. Their current favourites, as of late, include:

  • NASDAQ: GOOGL: $38.09 million (a substantial 9.8% of their assets under management, or AUM, as the moderns put it)
  • NASDAQ: INTU: $26.77 million (a solid 6.9% of AUM)
  • NYSE: PWR: $23.31 million (a respectable 6.0% of AUM)
  • NYSE: ICE: $20.16 million (a handy 5.2% of AUM)
  • NYSE: MSCI: $19.98 million (a pleasing 5.1% of AUM)

As of February 2nd, BellRing Brands shares were trading at $24.39 – a rather alarming 68.8% drop from their previous standing. The S&P 500, meanwhile, has been enjoying a bit of a jaunt, gaining roughly 15% in the same period. A rather stark contrast, wouldn’t you agree?

A Bit About the Firm

BellRing Brands, for the uninitiated, purveys ready-to-drink shakes and protein powders under the Premier Protein and Dymatize banners. Nutrition, it seems, is their game. They operate a rather elaborate distribution network, reaching consumers through clubs, food stores, drugstores, and all manner of retail outlets. They target the health-conscious and the fitness-minded, both here and abroad. A perfectly sound business, in principle, though one must always be wary of chasing the latest health fads.

Here’s a quick tabulation for those inclined to numbers:

Metric Value
Market Capitalization $2.92 billion
Price (as of February 3rd) $24.39
Revenue (Trailing Twelve Months) $2.32 billion
Net Income (Trailing Twelve Months) $216.20 million

What Does It All Mean?

Now, the truly interesting bit. Selling after a near 70% tumble suggests a reassessment of risk, wouldn’t you say? Not merely a bit of trimming around the edges. It smacks of a chap deciding his waistcoat is no longer quite the thing. And that, my dear reader, is worth noting. BellRing’s latest figures reveal a business that continues to grow, but one grappling with a spot of bother regarding profit margins. First-quarter sales rose a modest 1%, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA, for those in the know) took a rather nasty dive. Whey protein costs, it seems, are proving troublesome, and a bit of promotional activity hasn’t quite compensated. Guidance for the year suggests growth will continue, but at a slightly harder earned pace.

Add to this a bit of uncertainty regarding leadership – the CEO is planning to retire once a successor is found – and the near-term outlook becomes rather clouded. Meanwhile, Wilson Asset Management remains devoted to high-quality enterprises like Alphabet, Intuit, MSCI, and ICE – firms with a knack for pricing power and cleaner profit margins. Against that backdrop, BellRing appears as a capital-intensive consumer brand fighting inflation at a most inconvenient moment. And that, my friend, is a situation one might wish to avoid, especially after a rough patch for share prices. A spot of bother, indeed.

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2026-02-03 16:32