Stephens Has Lowered Expectations for Dutch Bros (NYSE:BROS) Stock Price

Key Points

• Stephens cut its Dutch Bros price target from $65 to $47 but maintained an “overweight” rating; the new target implies about 7% upside from the prior close.
• Analyst sentiment remains broadly positive: Dutch Bros has a “Moderate Buy” consensus rating and an average price target of $63.75.
• Quarterly earnings and revenue slightly beat estimates, with revenue up 29.8% year over year, but slowing traffic and a full-year outlook below Wall Street expectations weighed on the outlook.

Dutch Bros (NYSE:BROS - Get Free Report) had its price objective reduced by research analysts at Stephens from $65.00 to $47.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Stephens's price objective suggests a potential upside of 7.06% from the stock's previous close.

Several other research analysts have also commented on BROS. TD Cowen lowered their price objective on shares of Dutch Bros from $59.00 to $55.00 and set a "buy" rating for the company in a research note on Wednesday, October 21st. Wells Fargo & Company reissued an "overweight" rating and issued a $50.00 price target on shares of Dutch Bros in a research report on Thursday. DA Davidson dropped their price target on shares of Dutch Bros from $85.00 to $60.00 and set a "buy" rating for the company in a research note on Monday, September 28th. Robert W. Baird cut their price objective on Dutch Bros from $82.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, October 2nd. Finally, Raymond James Financial set a $59.00 price objective on Dutch Bros in a research note on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $63.75.

Dutch Bros Price Performance

BROS stock opened at $43.90 on Thursday. The business's fifty day moving average price is $42.11 and its 200 day moving average price is $53.16. Dutch Bros has a 12-month low of $36.51 and a 12-month high of $74.02. The company has a current ratio of 1.35, a quick ratio of 1.19 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $7.67 billion, a PE ratio of 60.97, a P/E/G ratio of 1.36 and a beta of 1.97.

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

Insider Buying and Selling

In other Dutch Bros news, Chairman Travis Boersma sold 1,032,216 shares of the business's 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 $46,171,021.68. Following the completion of the transaction, the chairman owned 1,366,580 shares in the company, valued at $61,127,123.40. The trade was a 43.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at 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 business's 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 $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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 4,044,220 shares of company stock valued at $179,732,644 in the last quarter. 38.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Dutch Bros

Several large investors have recently bought and sold shares of the business. Ancora Advisors LLC purchased a new stake in Dutch Bros during the 2nd quarter worth about $29,000. Archer Investment Corp acquired a new position in shares of Dutch Bros during the 2nd quarter worth about $101,000. GK Wealth Management LLC purchased a new position in shares of Dutch Bros in the 3rd quarter valued at about $56,000. State of Wyoming acquired a new stake in shares of Dutch Bros during the 3rd quarter worth about $66,000. Finally, Harbor Investment Advisory LLC raised its position in shares of Dutch Bros by 77.1% during the 2nd quarter. Harbor Investment Advisory LLC now owns 2,030 shares of the company's stock worth $146,000 after acquiring an additional 884 shares in the last quarter. Hedge funds and other institutional investors own 85.54% of the company's stock.

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

About Dutch Bros

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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