5 Recent Spin-off Companies That Hedge Funds Are Piling Into

4. BellRing Brands, Inc. (NYSE:BRBR)

Number of Hedge Fund Holders: 26

BellRing Brands, Inc. (NYSE:BRBR) provides nutrition products including ready-to-drink protein shakes, protein powders, and nutrition bars in the United States and internationally. On March 10, Post Holdings, Inc. (NYSE:POST) completed the spinoff of 80.1% of its interest in BellRing Brands, Inc. (NYSE:BRBR). BellRing common stock now trades on the New York Stock Exchange. It is one of the best spin-off stocks that hedge funds are picking up. On December 5, BellRing Brands, Inc. (NYSE:BRBR) approved a new $50 million share repurchase authorization, with share repurchases under the new authorization beginning on December 5, 2022.

On December 20, Morgan Stanley analyst Pamela Kaufman raised the price target on BellRing Brands, Inc. (NYSE:BRBR) to $29 from $28 and kept an Overweight rating on the shares. The analyst believes that the continued defensive market stance and steady fundamentals will sustain the packaged food sector’s relative outperformance in 2023.

According to Insider Monkey’s data, 26 hedge funds were bullish on BellRing Brands, Inc. (NYSE:BRBR) at the end of the third quarter of 2022, with combined stakes worth $501.2 million.