Dutch Bros (NYSE:BROS) Hits New 52-Week Low on Analyst Downgrade

Key Points

• Dutch Bros shares hit a new 52-week low, falling to $37.41 after DA Davidson cut its price target from $85 to $60, though the firm maintained a buy rating.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $74.23 from 24 analysts.
• The company reported quarterly EPS of $0.33 versus $0.29 expected, while revenue rose 32.5% year over year to $550.85 million; insiders own 38.90% of shares and institutional investors hold 85.54%.

Shares of Dutch Bros Inc. (NYSE:BROS - Get Free Report) reached a new 52-week low during mid-day trading on Monday after DA Davidson lowered their price target on the stock from $85.00 to $60.00. DA Davidson currently has a buy rating on the stock. Dutch Bros traded as low as $37.41 and last traded at $38.15, with a volume of 255329 shares. The stock had previously closed at $37.89.

BROS has been the subject of a number of other research reports. Raymond James Financial set a $59.00 price target on Dutch Bros in a research report on Friday, September 18th. Weiss Ratings reiterated a "hold (c)" rating on shares of Dutch Bros in a research note on Friday, July 17th. Seaport Research Partners began coverage on shares of Dutch Bros in a research note on Wednesday, September 16th. They set a "buy" rating and a $50.00 price objective for the company. Robert W. Baird upgraded Dutch Bros to a "strong-buy" rating in a report on Monday, August 24th. Finally, Piper Sandler raised their price target on Dutch Bros from $61.00 to $68.00 and gave the company a "neutral" rating in a research note on Monday, June 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $74.23.

Insider Buying and Selling

In related news, Director Todd Penegor acquired 2,000 shares of Dutch Bros stock in a transaction on Thursday, August 13th. The stock was purchased at an average cost of $51.56 per share, with a total value of $103,120.00. Following the completion of the transaction, the director directly owned 7,358 shares in the company, valued at $379,378.48. This trade represents a 37.33% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 38.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dutch Bros

A number of institutional investors have recently made changes to their positions in BROS. Ancora Advisors LLC bought a new position in shares of Dutch Bros during the second quarter worth approximately $29,000. Brown Lisle Cummings Inc. raised its holdings in Dutch Bros by 63.8% in the 1st quarter. Brown Lisle Cummings Inc. now owns 819 shares of the company's stock valued at $41,000 after acquiring an additional 319 shares in the last quarter. Glen Eagle Advisors LLC bought a new stake in shares of Dutch Bros during the 4th quarter valued at $74,000. Nemes Rush Group LLC increased its position in shares of Dutch Bros by 25.9% in the fourth quarter. Nemes Rush Group LLC now owns 1,360 shares of the company's stock worth $83,000 after purchasing an additional 280 shares during the period. Finally, Archer Investment Corp acquired a new position in Dutch Bros in the second quarter valued at about $101,000. Institutional investors own 85.54% of the company's stock.

Dutch Bros Price Performance

The company has a quick ratio of 1.19, a current ratio of 1.35 and a debt-to-equity ratio of 0.20. The stock has a market capitalization of $6.66 billion, a price-to-earnings ratio of 53.12, a P/E/G ratio of 1.35 and a beta of 2.28. The business's 50 day simple moving average is $51.44 and its 200-day simple moving average is $55.43.

Dutch Bros (NYSE:BROS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.29 by $0.04. The business had revenue of $550.85 million during the quarter, compared to the consensus estimate of $525.38 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The company's revenue was up 32.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.26 earnings per share. On average, research analysts forecast that Dutch Bros Inc. will post 0.87 earnings per share for the current year.

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company has expanded from a single coffee cart into a national chain with locations in more than 20 states.

Dutch Bros' menu includes specialty espresso-based coffees, cold brew, teas, Dutch Bros Blue Rebel energy drinks, smoothies, lemonades, sodas and other flavored beverages. Its shops emphasize drive-thru convenience, customizable drinks and customer-focused service, with some locations also offering walk-up windows or limited indoor seating.

The company combines company-operated shops with franchised locations, although its growth strategy has increasingly emphasized company-operated stores.

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