Dutch Bros (NYSE:BROS) Stock Price Down 7% - Here's What Happened

Key Points

• Dutch Bros' stock fell by 7% to $65.36, down from a previous close of $70.27, amid a trading volume decline.
• Despite this drop, several brokerages have a positive outlook, with an average price target of $77.82 and a majority rating it as a "Buy."
• Insider trading showed significant activity, with Chairman Travis Boersma selling 722,841 shares for over $48 million, reducing his ownership stake by 27.14%.

Shares of Dutch Bros Inc. (NYSE:BROS - Get Free Report) were down 7% during trading on Friday . The stock traded as low as $66.06 and last traded at $65.36. Approximately 2,983,537 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 3,173,639 shares. The stock had previously closed at $70.27.

Wall Street Analyst Weigh In

Several equities analysts recently commented on BROS shares. Robert W. Baird upped their price target on shares of Dutch Bros from $66.00 to $72.00 and gave the company an "outperform" rating in a research note on Thursday, May 8th. Guggenheim upped their price objective on shares of Dutch Bros from $72.00 to $76.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Piper Sandler dropped their target price on shares of Dutch Bros from $70.00 to $63.00 and set a "neutral" rating for the company in a report on Thursday, May 8th. Royal Bank Of Canada increased their target price on shares of Dutch Bros from $83.00 to $85.00 and gave the stock an "outperform" rating in a report on Thursday, August 7th. Finally, CICC Research started coverage on shares of Dutch Bros in a report on Monday, June 30th. They issued an "outperform" rating and a $80.00 price objective for the company. Two investment analysts have rated the stock with a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, Dutch Bros currently has an average rating of "Buy" and an average price target of $77.82.

Dutch Bros Stock Down 2.2%

The company has a 50-day moving average price of $65.83 and a 200 day moving average price of $65.73. The firm has a market capitalization of $11.07 billion, a PE ratio of 143.04, a P/E/G ratio of 4.29 and a beta of 2.63. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.64 and a quick ratio of 1.42.

Dutch Bros (NYSE:BROS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.08. The company had revenue of $415.81 million for the quarter, compared to analysts' expectations of $403.24 million. Dutch Bros had a return on equity of 8.86% and a net margin of 3.94%. The firm's revenue for the quarter was up 28.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.19 earnings per share. Analysts forecast that Dutch Bros Inc. will post 0.57 earnings per share for the current year.

Insiders Place Their Bets

In related news, Chairman Travis Boersma sold 722,841 shares of the company's stock in a transaction on Thursday, May 22nd. The stock was sold at an average price of $66.82, for a total value of $48,300,235.62. Following the transaction, the chairman directly owned 1,940,245 shares of the company's stock, valued at $129,647,170.90. This represents a 27.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Dm Individual Aggregator, Llc sold 159,254 shares of the stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $66.82, for a total value of $10,641,352.28. Following the sale, the insider directly owned 1,940,245 shares in the company, valued at $129,647,170.90. This represents a 7.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,465,214 shares of company stock valued at $237,721,138. 42.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Dutch Bros

A number of institutional investors have recently modified their holdings of the business. Coppell Advisory Solutions LLC increased its holdings in Dutch Bros by 638.6% in the 4th quarter. Coppell Advisory Solutions LLC now owns 517 shares of the company's stock valued at $27,000 after purchasing an additional 447 shares during the last quarter. AdvisorNet Financial Inc acquired a new position in shares of Dutch Bros in the first quarter worth $31,000. Cullen Frost Bankers Inc. acquired a new position in shares of Dutch Bros in the first quarter worth $31,000. Banque Transatlantique SA acquired a new position in shares of Dutch Bros in the first quarter worth $38,000. Finally, Kiker Wealth Management LLC grew its stake in shares of Dutch Bros by 4,423.1% in the second quarter. Kiker Wealth Management LLC now owns 588 shares of the company's stock worth $40,000 after acquiring an additional 575 shares in the last quarter. 85.54% of the stock is currently owned by institutional investors and hedge funds.

About Dutch Bros

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.