DA Davidson Cuts Dutch Bros (NYSE:BROS) Price Target to $60.00

Key Points

• DA Davidson cut Dutch Bros’ price target from $85 to $60 while maintaining a “buy” rating, implying approximately 56.8% upside from the stock’s reported $38.26 price.
• Analyst sentiment remains broadly positive: Dutch Bros has a “Moderate Buy” consensus rating and an average price target of $74.23, based on two Strong Buy, eighteen Buy, and four Hold ratings.
• Dutch Bros reported quarterly revenue of $550.85 million, up 32.5% year over year, and EPS of $0.33 versus the $0.29 consensus estimate. The stock was near its 12-month low, while insiders owned 38.9% and institutional investors held 85.54%.

Dutch Bros (NYSE:BROS - Get Free Report) had its target price decreased by research analysts at DA Davidson from $85.00 to $60.00 in a research note issued on Monday, Benzinga reports. The firm currently has a "buy" rating on the stock. DA Davidson's price objective would suggest a potential upside of 56.82% from the stock's current price.

Several other equities research analysts also recently weighed in on BROS. Piper Sandler increased their price target on Dutch Bros from $61.00 to $68.00 and gave the stock a "neutral" rating in a research report on Monday, June 22nd. Robert W. Baird upgraded Dutch Bros to a "strong-buy" rating in a research note on Monday, August 24th. Seaport Research Partners started coverage on Dutch Bros in a report on Wednesday, September 16th. They set a "buy" rating and a $50.00 target price on the stock. Freedom Capital upgraded Dutch Bros to a "strong-buy" rating in a research report on Wednesday, July 1st. Finally, Raymond James Financial set a $59.00 price target on Dutch Bros in a report on Friday, September 18th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $74.23.

Dutch Bros Stock Performance

Shares of BROS stock traded up $0.37 during trading hours on Monday, hitting $38.26. The company's stock had a trading volume of 255,329 shares, compared to its average volume of 4,277,485. The stock has a market cap of $6.68 billion, a PE ratio of 52.96, a price-to-earnings-growth ratio of 1.35 and a beta of 2.28. Dutch Bros has a 12-month low of $37.41 and a 12-month high of $74.02. The company has a 50 day moving average of $51.44 and a 200 day moving average of $55.43. The company has a current ratio of 1.35, a quick ratio of 1.19 and a debt-to-equity ratio of 0.20.

Dutch Bros (NYSE:BROS - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.04. The firm had revenue of $550.85 million during the quarter, compared to analysts' expectations of $525.38 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The firm's revenue was up 32.5% compared to the same quarter last year. During the same quarter last year, the company posted $0.26 earnings per share. On average, sell-side analysts forecast that Dutch Bros will post 0.87 EPS for the current fiscal year.

Insider Activity

In other news, Director Todd Penegor bought 2,000 shares of the stock in a transaction dated Thursday, August 13th. The shares were acquired at an average cost of $51.56 per share, with a total value of $103,120.00. Following the purchase, the director directly owned 7,358 shares in the company, valued at $379,378.48. The trade was a 37.33% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 38.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dutch Bros

Several institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP boosted its position in Dutch Bros by 38.0% during the second quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company's stock worth $221,956,000 after purchasing an additional 851,075 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Dutch Bros by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 2,265,083 shares of the company's stock worth $138,699,000 after buying an additional 39,349 shares during the period. Westfield Capital Management Co. LP acquired a new position in shares of Dutch Bros during the 4th quarter worth approximately $108,948,000. Norges Bank purchased a new position in shares of Dutch Bros during the 4th quarter valued at approximately $96,951,000. Finally, Bank of America Corp DE lifted its position in shares of Dutch Bros by 33.4% during the 1st quarter. Bank of America Corp DE now owns 1,814,815 shares of the company's stock valued at $91,939,000 after buying an additional 454,036 shares in the last quarter. Hedge funds and other institutional investors own 85.54% of the company's stock.

About Dutch Bros

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company has expanded from a single coffee cart into a national chain with locations in more than 20 states.

Dutch Bros' menu includes specialty espresso-based coffees, cold brew, teas, Dutch Bros Blue Rebel energy drinks, smoothies, lemonades, sodas and other flavored beverages. Its shops emphasize drive-thru convenience, customizable drinks and customer-focused service, with some locations also offering walk-up windows or limited indoor seating.

The company combines company-operated shops with franchised locations, although its growth strategy has increasingly emphasized company-operated stores.

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