Dutch Bros (NYSE:BROS) Shares Down 6.1% - Should You Sell?

Key Points

• Shares fell 6.1% to $52.47 on Monday on light volume (1.2M shares, down ~75% from average) and are trading below their 200‑day moving average of $55.69.
• Analysts remain broadly positive, with a consensus rating of "Moderate Buy" and an average price target of $75.52; multiple firms have reiterated Buy/Overweight ratings (targets roughly $66–$76).
• Dutch Bros recently beat quarterly expectations (EPS $0.17 vs $0.10; revenue $443.6M, +29.4% YoY), but carries a high valuation (P/E ~84.31) and roughly 85.5% institutional ownership.

Dutch Bros Inc. (NYSE:BROS - Get Free Report)'s share price fell 6.1% on Monday . The company traded as low as $51.90 and last traded at $52.4740. 1,197,502 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 4,733,703 shares. The stock had previously closed at $55.88.

Analyst Ratings Changes

A number of brokerages have weighed in on BROS. Telsey Advisory Group began coverage on shares of Dutch Bros in a research report on Wednesday, April 8th. They issued an "outperform" rating and a $66.00 price objective for the company. TD Cowen reiterated a "buy" rating and issued a $73.00 price objective on shares of Dutch Bros in a research report on Friday, February 13th. KeyCorp reiterated an "overweight" rating on shares of Dutch Bros in a research report on Friday, January 9th. UBS Group reiterated a "buy" rating on shares of Dutch Bros in a research report on Friday. Finally, Sanford C. Bernstein reiterated an "overweight" rating and issued a $76.00 price objective on shares of Dutch Bros in a research report on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $75.52.

Dutch Bros Stock Performance

The company has a current ratio of 1.49, a quick ratio of 1.28 and a debt-to-equity ratio of 0.22. The firm's 50-day moving average is $52.03 and its two-hundred day moving average is $55.69. The stock has a market cap of $8.83 billion, a price-to-earnings ratio of 84.31, a P/E/G ratio of 2.04 and a beta of 2.50.

Dutch Bros (NYSE:BROS - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.07. Dutch Bros had a net margin of 4.87% and a return on equity of 9.56%. The firm had revenue of $443.61 million during the quarter, compared to the consensus estimate of $424.44 million. During the same quarter in the prior year, the firm earned $0.07 EPS. The company's revenue for the quarter was up 29.4% on a year-over-year basis. As a group, sell-side analysts expect that Dutch Bros Inc. will post 0.57 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Osterweis Capital Management Inc. acquired a new position in shares of Dutch Bros during the 2nd quarter worth about $27,000. Brown Lisle Cummings Inc. acquired a new stake in Dutch Bros in the 4th quarter valued at about $31,000. Rakuten Securities Inc. raised its holdings in Dutch Bros by 557.4% in the 2nd 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 stake in Dutch Bros in the 4th quarter valued at about $31,000. Finally, Quarry LP raised its holdings in Dutch Bros by 83.5% in the 4th quarter. Quarry LP now owns 600 shares of the company's stock valued at $37,000 after acquiring an additional 273 shares during the last quarter. Institutional investors and hedge funds own 85.54% of the company's stock.

Dutch Bros Company Profile

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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