Dutch Bros (NYSE:BROS) Reaches New 12-Month Low - What's Next?

Key Points

• Dutch Bros shares fell to a new 52-week low of $37.33, down 2.5% in the session, with the stock trading well below its 50-day and 200-day moving averages.
• Despite the selloff, analysts maintain a consensus “Moderate Buy” rating with an average price target of $71.88, although some targets were recently reduced.
• The company reported better-than-expected quarterly results, including $0.33 EPS and $550.85 million in revenue, with revenue rising 32.5% year over year. Insider ownership stands at 38.9%, while institutional investors own 85.54% of shares.

Dutch Bros Inc. (NYSE:BROS - Get Free Report)'s stock price hit a new 52-week low during trading on Monday. The stock traded as low as $37.33 and last traded at $37.2380, with a volume of 164,460 shares traded. The stock had previously closed at $38.05.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on BROS shares. Oppenheimer restated a "positive" rating on shares of Dutch Bros in a report on Wednesday, September 30th. Weiss Ratings raised Dutch Bros from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. Morgan Stanley lifted their price objective on Dutch Bros from $87.00 to $88.00 and gave the stock an "overweight" rating in a report on Wednesday, July 15th. Robert W. Baird decreased their target price on Dutch Bros from $82.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, October 2nd. Finally, Stephens reissued an "overweight" rating and issued a $80.00 target price on shares of Dutch Bros in a report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Dutch Bros currently has a consensus rating of "Moderate Buy" and an average target price of $71.88.

Dutch Bros Stock Down 2.5%

The company has a debt-to-equity ratio of 0.20, a current ratio of 1.35 and a quick ratio of 1.19. The firm has a market capitalization of $6.48 billion, a price-to-earnings ratio of 51.48, a price-to-earnings-growth ratio of 1.35 and a beta of 2.31. The firm's 50-day moving average price is $46.11 and its 200 day moving average price is $54.59.

Dutch Bros (NYSE:BROS - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.04. The firm had revenue of $550.85 million for the quarter, compared to analyst estimates of $525.38 million. Dutch Bros had a return on equity of 10.01% and a net margin of 4.91%. Dutch Bros's revenue was up 32.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.26 EPS. Sell-side analysts expect that Dutch Bros Inc. will post 0.88 EPS for the current year.

Insider Buying and Selling at Dutch Bros

In related news, Director Todd Penegor purchased 2,000 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was bought at an average cost of $51.56 per share, with a total value of $103,120.00. Following the completion of the acquisition, the director directly owned 7,358 shares in the company, valued at $379,378.48. The trade was a 37.33% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 38.90% of the stock is currently owned by company insiders.

Institutional Trading of Dutch Bros

Hedge funds and other institutional investors have recently bought and sold shares of the company. Wellington Management Group LLP boosted its holdings in Dutch Bros by 38.0% in the second quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company's stock valued at $221,956,000 after acquiring an additional 851,075 shares during the last quarter. Bank of America Corp DE grew its position in Dutch Bros by 33.4% during the first quarter. Bank of America Corp DE now owns 1,814,815 shares of the company's stock valued at $91,939,000 after acquiring an additional 454,036 shares during the period. Dimensional Fund Advisors LP grew its position in Dutch Bros by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,204,326 shares of the company's stock valued at $60,994,000 after acquiring an additional 37,683 shares during the period. Bank of New York Mellon Corp increased its stake in Dutch Bros by 58.1% during the first quarter. Bank of New York Mellon Corp now owns 1,044,545 shares of the company's stock worth $52,917,000 after acquiring an additional 384,011 shares during the last quarter. Finally, Wasatch Advisors LP increased its stake in Dutch Bros by 17.8% during the second quarter. Wasatch Advisors LP now owns 1,038,903 shares of the company's stock worth $74,604,000 after acquiring an additional 157,098 shares during the last quarter. 85.54% of the stock is owned by hedge funds and other institutional investors.

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates the Dutch Bros coffeehouse brand. The company serves a broad menu of handcrafted beverages, including specialty coffees, cold brews, teas, energy drinks, lemonades, smoothies and flavored sodas, along with a selection of snacks and other food items.

Dutch Bros was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. From its original pushcart operation, the company developed a drive-thru-focused model built around convenience, customized drinks and customer service.

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