Dutch Bros (NYSE:BROS) Trading Down 7% - Time to Sell?

Key Points

• Shares fell ~7% intraday to about $49.71 on Thursday, with ~3.7 million shares traded (roughly 32% below the stock's average daily volume).
• Operational beat but rich valuation: Dutch Bros reported a Q that beat expectations (EPS $0.17 vs. $0.10; revenue $443.6M, +29.4% YoY) but trades at a high P/E (~77.4) while analysts hold a "Moderate Buy" consensus and an average price target of $77.05.
• Significant insider selling: Insiders sold 3,465,214 shares (about $189.8M) in the last three months, including the chairman's sale of 1,678,616 shares, substantially reducing insider positions.

Dutch Bros Inc. (NYSE:BROS - Get Free Report) shares dropped 7% during mid-day trading on Thursday . The company traded as low as $49.55 and last traded at $49.7070. Approximately 3,700,055 shares changed hands during trading, a decline of 32% from the average daily volume of 5,480,229 shares. The stock had previously closed at $53.42.

Analyst Ratings Changes

A number of research analysts recently issued reports on BROS shares. KeyCorp reaffirmed an "overweight" rating on shares of Dutch Bros in a report on Friday, January 9th. Royal Bank Of Canada restated an "outperform" rating and set a $75.00 price objective on shares of Dutch Bros in a research report on Friday, February 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Dutch Bros in a research report on Wednesday, January 21st. Barclays raised their price objective on Dutch Bros from $72.00 to $76.00 and gave the company an "overweight" rating in a research note on Wednesday, January 7th. Finally, Piper Sandler lowered their target price on Dutch Bros from $73.00 to $63.00 and set a "neutral" rating on the stock in a research note on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $77.05.

Dutch Bros Stock Down 7.3%

The firm has a market capitalization of $8.14 billion, a P/E ratio of 77.39, a P/E/G ratio of 2.05 and a beta of 2.54. The company has a 50 day simple moving average of $59.69 and a two-hundred day simple moving average of $59.25. The company has a current ratio of 1.49, a quick ratio of 1.32 and a debt-to-equity ratio of 0.22.

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

Insider Activity at Dutch Bros

In related news, major shareholder Dm Individual Aggregator, Llc sold 648,089 shares of the business's stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $55.44, for a total transaction of $35,930,054.16. Following the completion of the transaction, the insider directly owned 9,817 shares of the company's stock, valued at $544,254.48. The trade was a 98.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Chairman Travis Boersma sold 1,678,616 shares of the firm's stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $55.44, for a total transaction of $93,062,471.04. Following the completion of the sale, the chairman owned 9,817 shares in the company, valued at $544,254.48. The trade was a 99.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,465,214 shares of company stock valued at $189,800,291 in the last three months. 42.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Dutch Bros

Several institutional investors have recently added to or reduced their stakes in the business. RiverPark Advisors LLC increased its stake in Dutch Bros by 4.8% during the 2nd quarter. RiverPark Advisors LLC now owns 3,966 shares of the company's stock valued at $271,000 after buying an additional 181 shares during the period. KLP Kapitalforvaltning AS increased its position in Dutch Bros by 0.8% during the third quarter. KLP Kapitalforvaltning AS now owns 25,200 shares of the company's stock worth $1,319,000 after buying an additional 200 shares during the last quarter. Oppenheimer & Co. Inc. raised its stake in shares of Dutch Bros by 1.1% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 18,625 shares of the company's stock valued at $975,000 after acquiring an additional 200 shares in the last quarter. Moody Lynn & Lieberson LLC grew its holdings in Dutch Bros by 3.9% during the third quarter. Moody Lynn & Lieberson LLC now owns 5,382 shares of the company's stock valued at $282,000 after purchasing an additional 204 shares during the last quarter. Finally, GAMMA Investing LLC lifted its stake in shares of Dutch Bros by 31.5% in the third quarter. GAMMA Investing LLC now owns 856 shares of the company's stock worth $45,000 after buying an additional 205 shares during the last quarter. Institutional investors own 85.54% of the company's stock.

About Dutch Bros

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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