Insider Trading January 23, 2026

Driven Brands’ Legal Chief Divests $750K in Shares Amid Earnings Momentum

Scott L. O’Melia’s Stock Sale Occurs as Driven Brands Posts Stronger-Than-Expected Q3 Results and Adjusts Full-Year Forecast

By Maya Rios DRVN
Driven Brands’ Legal Chief Divests $750K in Shares Amid Earnings Momentum
DRVN

Driven Brands Holdings Inc.’s Chief Legal Officer, Scott L. O’Melia, recently sold approximately $750,000 worth of company stock in a transaction aligned with the company’s improving financial outlook. Despite operating at a loss over the past year, Driven Brands shows potential for profitability, backed by positive quarterly earnings and favorable analyst projections.

Key Points

  • Scott L. O’Melia, Driven Brands’ Chief Legal Officer, sold 46,875 shares at $16.00 each, totaling $750,000, while maintaining substantial holdings post-sale.
  • Driven Brands exceeded third-quarter earnings and revenue expectations, with adjusted EPS of $0.34 and revenue of $535.7 million, slightly above consensus forecasts.
  • Analyst price targets for Driven Brands range from $17 to $24, with BTIG reaffirming a Buy rating and a $21 price target following the sale announcement of the IMO international car wash business.

On January 21, 2026, Scott L. O’Melia, Chief Legal Officer of Driven Brands Holdings Inc. (NASDAQ: DRVN), executed a stock sale comprising 46,875 shares at $16.00 each, totaling $750,000. This sale was conducted at a price point close to Driven Brands’ current market price of $16.08, reflecting the company’s 9.18% year-to-date appreciation despite its ongoing unprofitable status over the last twelve months.

Following this transaction, O’Melia retains a substantial stake, holding 326,944 shares, as disclosed in a recent SEC Form 4 filing. The company, operating within the auto services segment and holding a market capitalization of $2.64 billion, is considered slightly undervalued based on InvestingPro’s valuation assessments.

Analysts anticipate Driven Brands will return to profitability within the current fiscal year, with official earnings results scheduled for release on February 19. Investor interest is further supported by analyst price targets ranging between $17 and $24, indicating possible upside potential beyond current trading levels.

In the latest financial results, Driven Brands surpassed analyst expectations for its third quarter, reporting adjusted earnings per share of $0.34, which was $0.04 above consensus estimates. Revenues marginally exceeded forecasts, reaching $535.7 million versus an anticipated $535.02 million. Additionally, the company has refined its full-year guidance, signaling a more precise outlook.

Further reinforcing positive sentiment, BTIG has reiterated its Buy recommendation on Driven Brands, assigning a price target of $21.00. This follows the strategic announcement of the sale of Driven Brands’ IMO international car wash operations, a move that will be reported as discontinued operations starting with the company’s fourth-quarter earnings for 2025.

These developments shed light on Driven Brands’ ongoing efforts to enhance financial performance and strategic positioning within the auto services industry, while marking notable insider activity by one of its key executives.

Risks

  • Driven Brands has reported operating losses over the past twelve months, signaling ongoing profitability challenges within the auto services sector.
  • The company’s plan to divest its international car wash operations introduces transitional risks related to restructuring and reported discontinued operations next fiscal year.
  • Market valuation is described as slightly undervalued yet the company's return to profitability remains predicted, not assured, which presents uncertainty to investors regarding financial recovery.

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