Dutch Bros (NYSE:BROS) Stock Price Target Cut by Jefferies Financial Group

Key Points

• Jefferies cut Dutch Bros’ price target from $75 to $60 but maintained an “overweight” rating, implying 57.76% upside from the prior close. Analysts overall maintain a “Moderate Buy” consensus with an average target of $73.61.
• Dutch Bros shares rose 0.8% to $38.03, near their 12-month low of $37.40 and well below the 50-day and 200-day moving averages. The stock has a $6.64 billion market capitalization and a 52.88 price-to-earnings ratio.
• The company’s latest quarterly results exceeded expectations, with earnings of $0.33 per share and revenue of $550.85 million, up 32.5% year over year. Insiders own 38.9% of shares, while institutional investors hold 85.54%.

Dutch Bros (NYSE:BROS - Get Free Report) had its price target lowered by analysts at Jefferies Financial Group from $75.00 to $60.00 in a research report issued on Tuesday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Jefferies Financial Group's price objective suggests a potential upside of 57.76% from the company's previous close.

Several other equities analysts have also issued reports on BROS. Melius Research reduced their price target on Dutch Bros from $95.00 to $70.00 and set a "buy" rating on the stock in a research report on Friday, September 18th. Raymond James Financial set a $59.00 price objective on Dutch Bros in a research note on Friday, September 18th. Oppenheimer raised their target price on shares of Dutch Bros from $72.00 to $82.00 and gave the stock an "outperform" rating in a report on Tuesday, June 30th. Telsey Advisory Group lifted their target price on shares of Dutch Bros from $66.00 to $74.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Dutch Bros in a report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Dutch Bros presently has a consensus rating of "Moderate Buy" and a consensus target price of $73.61.

Dutch Bros Trading Up 0.8%

Dutch Bros stock traded up $0.29 during mid-day trading on Tuesday, hitting $38.03. The company's stock had a trading volume of 287,088 shares, compared to its average volume of 4,278,191. The business has a 50 day moving average price of $50.87 and a 200-day moving average price of $55.33. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.35 and a quick ratio of 1.19. Dutch Bros has a 12 month low of $37.40 and a 12 month high of $74.02. The stock has a market cap of $6.64 billion, a price-to-earnings ratio of 52.88, a price-to-earnings-growth ratio of 1.35 and a beta of 2.28.

Dutch Bros (NYSE:BROS - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.29 by $0.04. Dutch Bros had a return on equity of 10.01% and a net margin of 4.91%.The firm had revenue of $550.85 million for the quarter, compared to the consensus estimate of $525.38 million. During the same quarter in the previous year, the business earned $0.26 earnings per share. The company's quarterly revenue was up 32.5% on a year-over-year basis. As a group, analysts forecast that Dutch Bros will post 0.87 EPS for the current year.

Insiders Place Their Bets

In other Dutch Bros news, Director Todd Penegor purchased 2,000 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average price of $51.56 per share, with a total value of $103,120.00. Following the completion of the purchase, the director directly owned 7,358 shares of the company's stock, valued at $379,378.48. The trade was a 37.33% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 38.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Westfield Capital Management Co. LP bought a new position in shares of Dutch Bros during the fourth quarter valued at approximately $108,948,000. Norges Bank bought a new stake in shares of Dutch Bros in the 4th quarter worth approximately $96,951,000. Interval Partners LP bought a new stake in shares of Dutch Bros in the 4th quarter worth approximately $57,276,000. Wellington Management Group LLP grew its stake in shares of Dutch Bros by 38.0% in the 2nd 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. Finally, Danica Pension Livsforsikringsaktieselskab purchased a new stake in shares of Dutch Bros in the 1st quarter worth approximately $33,569,000. 85.54% of the stock is currently owned by institutional investors.

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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