What Happened?
Shares of nutrition products company Bellring Brands (NYSE: BRBR) fell 10.7% in the afternoon session after markets remained agitated as multiple law firms announced investigations into the company.
The probes concern whether BellRing misled investors regarding its business and financial results. The investigations stem from company disclosures earlier in the year. On May 6, 2025, BellRing revealed that key retailers were reducing their inventory levels, which it said would create a headwind for third-quarter growth. Subsequently, on August 4, 2025, the company reported disappointing consumption of its Premier Protein shakes and a significant drop in net earnings. Both of these prior announcements resulted in substantial single-day declines in BellRing's stock price.
These lawsuits are fairly common after large stock price moves and do impact the fundamentals of a company. Furthermore, an initial lawsuit tends to be followed by others firms looking to capitalize.
The shares closed the day at $35.77, down 9.3% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy BellRing Brands? Access our full analysis report here, it’s free.
What Is The Market Telling Us
BellRing Brands’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for BellRing Brands and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 26 days ago when the stock gained 3% on the news that markets continued to rally as a surprisingly subdued inflation report fueled hopes for an imminent interest rate cut from the U.S. Federal Reserve. The July Consumer Price Index (CPI) report showed a year-over-year increase of 2.7%, which was slightly below market expectations. This tamer-than-expected inflation data was viewed by investors as a key signal that price pressures are easing. As a result, the market has strengthened its conviction that the U.S. Federal Reserve will implement an interest rate cut in September. The prospect of lower borrowing costs tends to boost corporate profitability and can stimulate economic activity, creating a more favorable environment for consumer-facing companies and fueling a broad-based market rally.
BellRing Brands is down 52% since the beginning of the year, and at $35.80 per share, it is trading 54.9% below its 52-week high of $79.39 from January 2025. Investors who bought $1,000 worth of BellRing Brands’s shares 5 years ago would now be looking at an investment worth $1,877.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
