Dutch Bros (NYSE:BROS) Shares Down 5.5% - Time to Sell?

Key Points

• Dutch Bros Inc. shares dropped 5.5% to $55.39, with trading volume increasing by 26% compared to the average.
• Analysts have mixed views, with a consensus rating of "Buy" and an average price target of $80.06, but Goldman Sachs giving a "neutral" rating.
• Insider trading revealed significant sales, including Chairman Travis Boersma selling 787,681 shares and a recent 42.40% ownership by insiders.

Dutch Bros Inc. (NYSE:BROS - Get Free Report)'s share price fell 5.5% during trading on Monday . The company traded as low as $55.43 and last traded at $55.39. 4,096,878 shares were traded during mid-day trading, an increase of 26% from the average session volume of 3,258,257 shares. The stock had previously closed at $58.62.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on BROS shares. The Goldman Sachs Group initiated coverage on shares of Dutch Bros in a report on Thursday, June 26th. They set a "neutral" rating and a $75.00 price target for the company. Morgan Stanley reissued an "overweight" rating and issued a $84.00 price target (up previously from $80.00) on shares of Dutch Bros in a research note on Thursday, August 7th. Melius Research raised Dutch Bros to a "strong-buy" rating in a research report on Monday, July 14th. CICC Research initiated coverage on Dutch Bros in a research report on Monday, June 30th. They issued an "outperform" rating and a $80.00 target price for the company. Finally, Barclays increased their price objective on Dutch Bros from $84.00 to $92.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $80.06.

Dutch Bros Stock Performance

The company has a quick ratio of 1.42, a current ratio of 1.64 and a debt-to-equity ratio of 0.69. The stock has a market cap of $9.07 billion, a P/E ratio of 117.33, a PEG ratio of 3.24 and a beta of 2.64. The stock has a fifty day simple moving average of $64.34 and a 200-day simple moving average of $64.68.

Dutch Bros (NYSE:BROS - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.08. Dutch Bros had a return on equity of 8.86% and a net margin of 3.94%.The firm had revenue of $415.81 million for the quarter, compared to analysts' expectations of $403.24 million. During the same quarter last year, the business earned $0.19 earnings per share. The company's revenue was up 28.0% compared to the same quarter last year. Equities analysts expect that Dutch Bros Inc. will post 0.57 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Chairman Travis Boersma sold 787,681 shares of Dutch Bros stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $68.94, for a total value of $54,302,728.14. Following the sale, the chairman owned 975,031 shares of the company's stock, valued at approximately $67,218,637.14. This trade represents a 44.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Dm Individual Aggregator, Llc sold 482,750 shares of Dutch Bros stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $65.17, for a total value of $31,460,817.50. Following the completion of the sale, the insider directly owned 1,279,144 shares in the company, valued at approximately $83,361,814.48. This represents a 27.40% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 3,161,101 shares of company stock worth $207,633,882. 42.40% of the stock is owned by insiders.

Institutional Trading of Dutch Bros

Several institutional investors have recently added to or reduced their stakes in BROS. Osterweis Capital Management Inc. bought a new stake in shares of Dutch Bros during the 2nd quarter valued at $27,000. AdvisorNet Financial Inc acquired a new position in Dutch Bros in the 1st quarter worth about $31,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Dutch Bros in the first quarter valued at about $31,000. Rakuten Securities Inc. increased its stake in shares of 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 buying an additional 379 shares during the period. Finally, Banque Transatlantique SA acquired a new stake in shares of Dutch Bros in the first quarter valued at about $38,000. 85.54% of the stock is currently owned by institutional investors.

Dutch Bros Company Profile

Dutch Bros Inc, together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands.

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