Dutch Bros (NYSE:BROS) Trading Down 6.9% - What's Next?

Key Points

• Dutch Bros' stock price dropped by 6.9% to $62.87 during trading, reflecting a significant decline from its previous close of $67.54.
• Recent analyst reports have seen several upgrades, with Barclays raising the price target from $84.00 to $92.00, signaling positive sentiment toward the company's potential.
• Despite the recent decline, Dutch Bros reported a quarterly earnings beat with $0.26 per share, surpassing expectations, and revenue growth of 28% year-over-year.

Dutch Bros Inc. (NYSE:BROS - Get Free Report)'s stock price fell 6.9% during trading on Thursday . The stock traded as low as $63.07 and last traded at $62.87. 3,469,031 shares were traded during mid-day trading, an increase of 8% from the average session volume of 3,208,203 shares. The stock had previously closed at $67.54.

Analyst Upgrades and Downgrades

BROS has been the topic of several research reports. Barclays upped their price target on Dutch Bros from $84.00 to $92.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Royal Bank Of Canada lifted their price objective on Dutch Bros from $83.00 to $85.00 and gave the stock an "outperform" rating in a research report on Thursday, August 7th. CICC Research initiated coverage on Dutch Bros in a research report on Monday, June 30th. They issued an "outperform" rating and a $80.00 price objective for the company. Bank of America increased their target price on Dutch Bros from $80.00 to $84.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Finally, Robert W. Baird increased their target price on Dutch Bros from $66.00 to $72.00 and gave the company an "outperform" rating in a research note on Thursday, May 8th. Two research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat.com, Dutch Bros currently has a consensus rating of "Buy" and an average target price of $77.82.

Dutch Bros Stock Down 6.3%

The stock has a 50 day moving average price of $65.73 and a 200 day moving average price of $65.75. The stock has a market capitalization of $10.41 billion, a price-to-earnings ratio of 134.66, a price-to-earnings-growth ratio of 4.37 and a beta of 2.63. The company has a quick ratio of 1.42, a current ratio of 1.64 and a debt-to-equity ratio of 0.69.

Dutch Bros (NYSE:BROS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.08. The company had revenue of $415.81 million during 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 business's quarterly revenue was up 28.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.19 earnings per share. As a group, analysts forecast that Dutch Bros Inc. will post 0.57 EPS for the current year.

Insider Transactions at Dutch Bros

In related news, Chairman Travis Boersma sold 722,841 shares of the company's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $66.82, for a total value of $48,300,235.62. Following the sale, the chairman owned 1,940,245 shares in the company, 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 SEC, which is available at this link. Also, major shareholder Dm Individual Aggregator, Llc sold 531,526 shares of the company's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $72.02, for a total transaction of $38,280,502.52. Following the completion of the sale, the insider owned 2,373,933 shares in the company, valued at $170,970,654.66. This represents a 18.29% 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 worth $237,721,138 over the last three months. 42.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BROS. Marshall Wace LLP boosted its holdings in Dutch Bros by 139.2% during the second quarter. Marshall Wace LLP now owns 2,509,767 shares of the company's stock worth $171,593,000 after purchasing an additional 1,460,376 shares during the last quarter. Norges Bank purchased a new position in Dutch Bros in the second quarter valued at about $93,525,000. BNP Paribas Financial Markets boosted its stake in Dutch Bros by 1,572.2% in the first quarter. BNP Paribas Financial Markets now owns 1,144,488 shares of the company's stock valued at $70,661,000 after acquiring an additional 1,076,045 shares during the last quarter. Invesco Ltd. boosted its stake in Dutch Bros by 70.9% in the second quarter. Invesco Ltd. now owns 2,333,142 shares of the company's stock valued at $159,517,000 after acquiring an additional 967,861 shares during the last quarter. Finally, 1832 Asset Management L.P. boosted its stake in Dutch Bros by 29.9% in the first quarter. 1832 Asset Management L.P. now owns 3,420,200 shares of the company's stock valued at $211,163,000 after acquiring an additional 788,100 shares during 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.

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