Dutch Bros (NYSE:BROS) Stock Gets Price Target Trim from TD Cowen

Key Points

• TD Cowen cut Dutch Bros’ price target from $55 to $50 but maintained a Buy rating, implying 13.9% upside from the current share price.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus and an average price target of $63.75, despite several firms recently lowering their targets.
• Dutch Bros beat quarterly earnings and revenue estimates, with revenue up 29.8% year over year; meanwhile, insiders sold about 4.0 million shares worth roughly $179.7 million over the past 90 days, through pre-arranged trading plans.

Dutch Bros (NYSE:BROS - Get Free Report) had its price objective reduced by investment analysts at TD Cowen from $55.00 to $50.00 in a report released on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. TD Cowen's price target suggests a potential upside of 13.90% from the company's current price.

Other research analysts have also issued reports about the stock. Jefferies Financial Group dropped their price objective on shares of Dutch Bros from $75.00 to $60.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 29th. Morgan Stanley dropped their price target on shares of Dutch Bros from $88.00 to $71.00 and set an "overweight" rating on the stock in a research report on Thursday, October 15th. Stephens cut their price target on Dutch Bros from $65.00 to $47.00 and set an "overweight" rating for the company in a research note on Thursday. JPMorgan Chase & Co. decreased their price objective on Dutch Bros from $75.00 to $60.00 and set an "overweight" rating for the company in a report on Tuesday, September 29th. Finally, Mizuho set a $55.00 price objective on Dutch Bros in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Dutch Bros presently has an average rating of "Moderate Buy" and an average price target of $63.75.

Dutch Bros Price Performance

Shares of NYSE:BROS opened at $43.90 on Thursday. The company has a quick ratio of 1.19, a current ratio of 1.35 and a debt-to-equity ratio of 0.20. Dutch Bros has a twelve month low of $36.51 and a twelve month high of $74.02. The stock's 50 day moving average is $42.11 and its 200-day moving average is $53.16. The firm has a market capitalization of $7.67 billion, a price-to-earnings ratio of 60.97, a PEG ratio of 1.36 and a beta of 1.97.

Dutch Bros (NYSE:BROS - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.01. The business had revenue of $549.84 million during the quarter, compared to the consensus estimate of $548.27 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. Dutch Bros's revenue was up 29.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.19 EPS. Sell-side analysts forecast that Dutch Bros will post 0.88 EPS for the current fiscal year.

Insider Activity

In other Dutch Bros news, major shareholder Dm Individual Aggregator, Llc sold 359,284 shares of Dutch Bros stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total transaction of $16,070,773.32. Following the transaction, the insider owned 1,366,580 shares of the company's stock, valued at $61,127,123.40. This trade represents a 20.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 1,032,216 shares of Dutch Bros stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $44.73, for a total transaction of $46,171,021.68. Following the transaction, the chairman directly owned 1,366,580 shares in the company, valued at approximately $61,127,123.40. This represents a 43.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 4,044,220 shares of company stock worth $179,732,644. 38.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dutch Bros

Institutional investors have recently modified their holdings of the business. Wellington Management Group LLP increased its position in Dutch Bros by 38.0% in the second quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company's stock worth $221,956,000 after buying an additional 851,075 shares during the last quarter. Bank of America Corp DE increased its holdings in Dutch Bros by 33.4% in the 1st quarter. Bank of America Corp DE now owns 1,814,815 shares of the company's stock worth $91,939,000 after acquiring an additional 454,036 shares during the last quarter. Hyperion Asset Management Ltd raised its stake in Dutch Bros by 104.4% in the 3rd quarter. Hyperion Asset Management Ltd now owns 1,222,532 shares of the company's stock valued at $47,141,000 after acquiring an additional 624,488 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Dutch Bros by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,204,326 shares of the company's stock valued at $60,994,000 after purchasing an additional 37,683 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its position in Dutch Bros by 58.1% during the first quarter. Bank of New York Mellon Corp now owns 1,044,545 shares of the company's stock worth $52,917,000 after purchasing an additional 384,011 shares during the period. 85.54% of the stock is owned by institutional investors.

Trending Headlines about Dutch Bros

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Q3 adjusted earnings of $0.25 per share topped the $0.24 consensus, while revenue of $549.8 million narrowly beat estimates and grew 29.8% year over year. Dutch Bros Q3 earnings and revenues top estimates
• Positive Sentiment: Dutch Bros expects at least $2.1 billion in 2026 revenue and plans about 250 system shop openings in 2027, signaling continued expansion. 2026 revenue outlook and 2027 shop-opening plans
• Neutral Sentiment: Plans to add hot food and delivery in 2027 could broaden sales opportunities, though execution and customer response remain uncertain. Dutch Bros plans hot food and delivery
• Negative Sentiment: Q3 traffic growth slowed, and reports said the full-year outlook fell short of Wall Street expectations. That forward-looking concern appears to have outweighed the earnings beat. Q3 traffic slows and outlook trails expectations
• Negative Sentiment: Telsey lowered its price target to $56. Chairman Travis Boersma and a major shareholder also reported substantial share sales; the transactions were made under pre-arranged Rule 10b5-1 plans, but may still add to investor concern. Telsey lowers Dutch Bros price target

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. The company is known for its made-to-order drinks, fast service and community-focused brand.

Its menu includes hot, iced and blended coffee beverages, along with specialty drinks such as energy drinks, teas, lemonades, smoothies and other noncoffee refreshments. Dutch Bros also offers packaged products and branded merchandise through select locations and digital channels.

Dutch Bros was founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma.

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