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

Key Points

• Analysts remain broadly bullish on Dutch Bros: Twenty-four analysts assign the stock an average “Moderate Buy” rating, including 19 buys and two strong buys. The average 12-month price target is $77.50, above the reported opening price of $64.01.
• Recent operating results exceeded revenue expectations: Dutch Bros reported quarterly EPS of $0.16, in line with estimates, while revenue of $464.41 million surpassed forecasts and rose 30.7% year over year.
• Insiders have been significant sellers: Insiders sold 4.09 million shares worth approximately $243 million over the past 90 days, including large pre-arranged sales by a major shareholder and Chairman Travis Boersma. Institutional investors, however, own 85.54% of the company and several major funds increased their holdings.

Shares of Dutch Bros Inc. (NYSE:BROS - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-four analysts that are currently covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, nineteen have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $77.50.

BROS has been the subject of a number of research analyst reports. Citigroup upped their price objective on shares of Dutch Bros from $84.00 to $85.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Stephens initiated coverage on shares of Dutch Bros in a research note on Thursday, July 16th. They set an "overweight" rating and a $80.00 target price for the company. KeyCorp boosted their target price on shares of Dutch Bros from $77.00 to $79.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Barclays decreased their price target on shares of Dutch Bros from $76.00 to $75.00 and set an "overweight" rating on the stock in a research note on Thursday, May 7th. Finally, TD Cowen reiterated a "buy" rating and issued a $73.00 price objective on shares of Dutch Bros in a report on Wednesday, June 10th.

Insider Activity at Dutch Bros

In related news, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The stock was 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 directly owned 2,410,800 shares in the company, valued at approximately $151,928,616. The trade was a 9.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction 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 transaction, the chairman directly owned 2,410,800 shares of the company's stock, valued at approximately $151,928,616. This represents a 23.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 4,086,245 shares of company stock worth $243,021,771. Company insiders own 38.90% of the company's stock.

Institutional Investors Weigh In On Dutch Bros

A number of large investors have recently modified their holdings of the business. Marshall Wace LLP lifted its stake in shares of Dutch Bros by 15.1% in the fourth quarter. Marshall Wace LLP now owns 3,098,288 shares of the company's stock worth $189,677,000 after buying an additional 407,528 shares in the last quarter. Ninety One UK Ltd grew its stake in Dutch Bros by 1.5% during the 4th quarter. Ninety One UK Ltd now owns 2,625,483 shares of the company's stock valued at $160,732,000 after acquiring an additional 39,781 shares in the last quarter. Invesco Ltd. grew its stake in Dutch Bros by 4.0% during the 3rd quarter. Invesco Ltd. now owns 2,426,657 shares of the company's stock valued at $127,011,000 after acquiring an additional 93,515 shares in the last quarter. Geode Capital Management LLC raised its holdings in Dutch Bros by 1.8% in the 4th quarter. Geode Capital Management LLC now owns 2,265,083 shares of the company's stock valued at $138,699,000 after acquiring an additional 39,349 shares during the last quarter. Finally, State Street Corp raised its holdings in Dutch Bros by 1.8% in the 4th quarter. State Street Corp now owns 2,020,112 shares of the company's stock valued at $123,671,000 after acquiring an additional 35,854 shares during the last quarter. Hedge funds and other institutional investors own 85.54% of the company's stock.

Dutch Bros Stock Up 0.0%

Dutch Bros stock opened at $64.01 on Monday. The stock has a market capitalization of $11.18 billion, a PE ratio of 100.02, a price-to-earnings-growth ratio of 1.94 and a beta of 2.31. Dutch Bros has a 12 month low of $44.58 and a 12 month high of $74.65. The business has a 50 day simple moving average of $63.20 and a 200-day simple moving average of $57.41. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.33 and a quick ratio of 1.19.

Dutch Bros (NYSE:BROS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.16. Dutch Bros had a return on equity of 9.42% and a net margin of 4.61%.The firm had revenue of $464.41 million for the quarter, compared to analyst estimates of $449.69 million. During the same quarter last year, the firm posted $0.14 EPS. The business's revenue was up 30.7% on a year-over-year basis. On average, analysts anticipate that Dutch Bros will post 0.84 EPS for the current fiscal year.

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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