Dutch Bros (NYSE:BROS) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Dutch Bros’ price target from $46 to $38 and maintained a “sector perform” rating; the new target implies 10.2% upside from the share price cited in the report.
• Dutch Bros beat quarterly earnings and revenue estimates, with revenue up 29.8% year over year, but slower traffic growth and a narrowed full-year sales outlook weighed on the stock.
• Chairman Travis Boersma and an associated major shareholder sold substantial amounts of stock under pre-arranged trading plans; insiders sold about $179.7 million in shares over the prior 90 days.

Dutch Bros (NYSE:BROS - Get Free Report) had its price objective reduced by Royal Bank Of Canada from $46.00 to $38.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price target points to a potential upside of 10.20% from the company's current price.

Other equities research analysts have also issued research reports about the company. Stephens dropped their price target on Dutch Bros from $65.00 to $47.00 and set an "overweight" rating on the stock in a research report on Thursday. Telsey Advisory Group set a $56.00 price objective on Dutch Bros in a research report on Thursday. Raymond James Financial set a $59.00 target price on Dutch Bros in a research note on Friday, September 18th. JPMorgan Chase & Co. dropped their target price on shares of Dutch Bros from $75.00 to $60.00 and set an "overweight" rating on the stock in a report on Tuesday, September 29th. Finally, DA Davidson cut their price target on shares of Dutch Bros from $85.00 to $60.00 and set a "buy" rating on the stock in a research note on Monday, September 28th. One equities research 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 company's stock. Based on data from MarketBeat.com, Dutch Bros has an average rating of "Moderate Buy" and an average price target of $61.83.

Dutch Bros Trading Down 21.6%

Shares of Dutch Bros stock traded down $9.51 during trading on Thursday, reaching $34.48. 9,461,419 shares of the company were exchanged, compared to its average volume of 4,352,633. The business has a 50-day moving average price of $42.11 and a 200-day moving average price of $53.16. The firm has a market capitalization of $6.02 billion, a price-to-earnings ratio of 47.75, a P/E/G ratio of 1.36 and a beta of 1.97. 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 $33.98 and a twelve month high of $74.02.

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

Insiders Place Their Bets

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP boosted its holdings in shares of 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 acquiring an additional 851,075 shares during the period. Bank of America Corp DE increased its stake in shares of Dutch Bros by 33.4% during the first quarter. Bank of America Corp DE now owns 1,814,815 shares of the company's stock worth $91,939,000 after purchasing an additional 454,036 shares during the period. Hyperion Asset Management Ltd increased its stake in shares of Dutch Bros by 104.4% during the third quarter. Hyperion Asset Management Ltd now owns 1,222,532 shares of the company's stock worth $47,141,000 after purchasing an additional 624,488 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Dutch Bros by 3.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,204,326 shares of the company's stock worth $60,994,000 after purchasing an additional 37,683 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in Dutch Bros by 58.1% during the 1st 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 last quarter. 85.54% of the stock is currently owned by institutional investors.

Key Dutch Bros News

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

• Positive Sentiment: Q3 revenue increased about 30% year over year to $549.8 million, slightly above estimates, while EPS of $0.25 topped the $0.24 consensus. Dutch Bros also plans approximately 250 system-shop openings in 2027. Dutch Bros: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Oppenheimer, BNP Paribas Exane, KeyCorp, Stephens and TD Cowen lowered their price targets following results, but retained positive ratings such as Outperform, Overweight or Buy. The target cuts reflect reduced expectations, while the continued ratings suggest analysts still see potential upside. Dutch Bros Analysts Cut Their Forecasts After Q3 Results
• Negative Sentiment: Q3 traffic growth slowed, and Dutch Bros narrowed its full-year sales outlook, which coverage described as below Wall Street expectations. That outlook disappointment appears to have driven the selloff despite the quarterly beat. Dutch Bros Q3 traffic slows, trims full-year outlook below street view
• Negative Sentiment: Chairman Travis Boersma and an associated major shareholder disclosed sizeable share sales. The transactions were made under pre-arranged Rule 10b5-1 plans, but may still add to investor concerns amid the post-earnings decline. Dutch Bros insider trades

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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