Dutch Bros Inc. (NYSE:BROS) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a bullish stance: Dutch Bros has a “Moderate Buy” consensus from 22 firms, including 18 buys, three holds, and one strong buy. The average 12-month price target is $77.15.
• The company exceeded quarterly expectations, reporting $0.33 in EPS versus a $0.29 consensus and $550.85 million in revenue, up 32.5% year over year.
• Insiders sold heavily: Insiders sold 4.09 million shares worth approximately $243 million over the past three months, while institutional investors and hedge funds own 85.54% of the stock.

Shares of Dutch Bros Inc. (NYSE:BROS - Get Free Report) have received an average recommendation of "Moderate Buy" from the twenty-two research firms that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $77.15.

Several equities research analysts have commented on the company. DA Davidson cut their price objective on Dutch Bros from $90.00 to $85.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Morgan Stanley lifted their price target on Dutch Bros from $87.00 to $88.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Piper Sandler boosted 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. Telsey Advisory Group increased their price objective on Dutch Bros from $66.00 to $74.00 and gave the company an "outperform" rating in a research note on Friday, July 31st. Finally, Freedom Capital upgraded Dutch Bros to a "strong-buy" rating in a report on Wednesday, July 1st.

Dutch Bros Stock Down 1.9%

BROS stock opened at $49.30 on Friday. The stock has a market capitalization of $8.61 billion, a P/E ratio of 68.47, a P/E/G ratio of 1.79 and a beta of 2.32. The firm has a 50-day simple moving average of $63.48 and a 200-day simple moving average of $56.90. 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 52 week low of $44.58 and a 52 week high of $74.65.

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

Insider Activity

In related news, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $63.02, for a total transaction of $16,451,686.10. Following the completion of the sale, the insider owned 2,410,800 shares of the company's stock, valued at approximately $151,928,616. This represents a 9.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 750,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the completion of the sale, the chairman owned 2,410,800 shares of the company's stock, valued at $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 4,086,245 shares of company stock worth $243,021,771. Insiders own 38.90% of the company's stock.

Institutional Investors Weigh In On Dutch Bros

Hedge funds and other institutional investors have recently bought and sold shares of the company. Osterweis Capital Management Inc. purchased a new stake in shares of Dutch Bros in the 2nd quarter valued at approximately $27,000. Ancora Advisors LLC purchased a new stake in shares of Dutch Bros during the 2nd quarter valued at approximately $29,000. Rakuten Securities Inc. lifted its holdings in Dutch Bros by 557.4% in the second quarter. Rakuten Securities Inc. now owns 447 shares of the company's stock valued at $31,000 after acquiring an additional 379 shares during the last quarter. Ankerstar Wealth LLC acquired a new position in Dutch Bros in the fourth quarter valued at approximately $31,000. Finally, Quarry LP grew its position in Dutch Bros by 83.5% in the fourth quarter. Quarry LP now owns 600 shares of the company's stock worth $37,000 after acquiring an additional 273 shares during the period. 85.54% of the stock is currently owned by institutional investors and hedge funds.

About Dutch Bros

Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.

The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.

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