Dutch Bros (NYSE:BROS) Shares Down 7% - What's Next?

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%.

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

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on BROS. CICC Research initiated coverage on shares of Dutch Bros in a report on Monday, June 30th. They set an "outperform" rating and a $80.00 price objective for the company. Barclays raised their target price on shares of Dutch Bros from $84.00 to $92.00 and gave the company an "overweight" rating in a research note on Thursday. Guggenheim lifted their price target on shares of Dutch Bros from $72.00 to $76.00 and gave the company a "buy" rating in a report on Thursday. Bank of America boosted their price target on shares of Dutch Bros from $80.00 to $84.00 and gave the stock an "overweight" rating in a research note on Thursday. Finally, Stifel Nicolaus cut their price objective on Dutch Bros from $85.00 to $82.00 and set a "buy" rating for the company in a research report on Thursday, May 8th. Two research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Dutch Bros has an average rating of "Buy" and an average price target of $77.82.

Dutch Bros Trading Down 5.9%

The company has a market capitalization of $10.88 billion, a PE ratio of 140.75, a price-to-earnings-growth ratio of 3.20 and a beta of 2.63. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.95 and a quick ratio of 1.75. The company's fifty day moving average is $66.08 and its 200-day moving average is $65.55.

Dutch Bros (NYSE:BROS - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.08. Dutch Bros had a return on equity of 9.05% and a net margin of 3.94%. The company had revenue of $415.81 million for the quarter, compared to analyst estimates of $403.24 million. During the same quarter in the previous year, the firm earned $0.19 earnings per share. The firm's quarterly revenue was up 28.0% compared to the same quarter last year. On average, analysts anticipate that Dutch Bros Inc. will post 0.57 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Chairman Travis Boersma sold 722,841 shares of the firm's stock in a transaction dated 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 completion of the transaction, the chairman directly owned 1,940,245 shares in the company, valued at $129,647,170.90. This trade represents a 27.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, major shareholder Dm Individual Aggregator, Llc sold 159,254 shares of the company's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $66.82, for a total value of $10,641,352.28. Following the completion of the sale, the insider owned 1,940,245 shares in the company, valued at approximately $129,647,170.90. This represents a 7.59% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 3,465,214 shares of company stock valued at $237,721,138 over the last quarter. 42.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of BROS. Coppell Advisory Solutions LLC raised 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 worth $27,000 after purchasing an additional 447 shares during the period. AdvisorNet Financial Inc purchased a new stake in shares of Dutch Bros in the first quarter valued at approximately $31,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Dutch Bros in the first quarter valued at approximately $31,000. Banque Transatlantique SA acquired a new position in shares of Dutch Bros during the 1st quarter worth approximately $38,000. Finally, Kiker Wealth Management LLC lifted its position in shares of Dutch Bros by 4,423.1% during the 2nd quarter. Kiker Wealth Management LLC now owns 588 shares of the company's stock valued at $40,000 after buying an additional 575 shares in the last quarter. 85.54% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.