Dutch Bros (NYSE:BROS) Sets New 1-Year Low After Insider Selling

Key Points

• Dutch Bros shares hit a 52-week low of $36.06, down about 17.5% from the previous close of $43.99.
• Major shareholder DM Individual Aggregator sold shares in multiple transactions over three days; the sales were made under a pre-arranged Rule 10b5-1 plan.
• Q3 earnings and revenue slightly beat estimates, with revenue up 29.8% year over year, but slowing traffic and a reduced sales outlook raised growth concerns. Analysts maintained a “Moderate Buy” consensus with an average price target of $63.46.

Dutch Bros Inc. (NYSE:BROS - Get Free Report) hit a new 52-week low on Thursday after an insider sold shares in the company. The stock traded as low as $36.06 and last traded at $36.1540, with a volume of 1,244,783 shares. The stock had previously closed at $43.99.

Specifically, major shareholder Dm Individual Aggregator, Llc sold 359,284 shares of the stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total transaction of $16,070,773.32. Following the transaction, the insider directly owned 1,366,580 shares in the company, valued at $61,127,123.40. This represents a 20.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 137,060 shares of the firm's stock in a transaction that occurred on Tuesday, November 3rd. The stock was sold at an average price of $44.06, for a total transaction of $6,038,863.60. Following the completion of the sale, the insider directly owned 1,725,864 shares in the company, valued at $76,041,567.84. This represents a 7.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, major shareholder Dm Individual Aggregator, Llc sold 335,136 shares of the company's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $44.55, for a total transaction of $14,930,308.80. Following the completion of the transaction, the insider owned 1,862,924 shares of the company's stock, valued at approximately $82,993,264.20. This represents a 15.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on BROS. Jefferies Financial Group cut their price target on shares of Dutch Bros from $75.00 to $60.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 29th. Raymond James Financial set a $59.00 price objective on Dutch Bros in a report on Friday, September 18th. Wells Fargo & Company reduced their target price on Dutch Bros from $55.00 to $50.00 and set an "overweight" rating on the stock in a report on Thursday. Morgan Stanley reduced their target price on Dutch Bros from $88.00 to $71.00 and set an "overweight" rating on the stock in a report on Thursday, October 15th. Finally, KeyCorp lowered their price target on Dutch Bros from $59.00 to $52.00 and set an "overweight" rating for the company in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $63.46.

Dutch Bros News Summary

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.25 per share, above the $0.24 consensus, while revenue of $549.8 million edged past estimates and grew 29.8% year over year. Dutch Bros Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Dutch Bros is planning about 250 system shop openings in 2027 and expects at least $2.1 billion in 2026 revenue. Reports also point to hot food and delivery plans for 2027, offering potential avenues for growth. Dutch Bros revenue and shop-opening plans
• Neutral Sentiment: Stephens lowered its target from $65 to $47 but kept an Overweight rating; TD Cowen cut its target from $55 to $50 and maintained Buy. Both targets remain above the referenced $43.90 share price. Analysts cut forecasts after Q3 results
• Negative Sentiment: Slowing Q3 traffic and a narrowed sales forecast—reported as below Wall Street expectations—appear to have outweighed the earnings beat and fueled investor concern about near-term growth. Dutch Bros Q3 traffic slows and outlook is trimmed
• Negative Sentiment: Chairman Travis Boersma sold roughly 2.39 million shares for about $106 million across three days. The sales were made under a pre-arranged Rule 10b5-1 plan, but their size may still weigh on sentiment. Dutch Bros insider trades

Dutch Bros Trading Down 17.5%

The firm's 50 day simple moving average is $42.11 and its 200-day simple moving average is $53.16. The company has a market capitalization of $6.34 billion, a PE ratio of 50.43, a P/E/G ratio of 1.36 and a beta of 1.97. The company has a quick ratio of 1.19, a current ratio of 1.35 and a debt-to-equity ratio of 0.20.

Dutch Bros (NYSE:BROS - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.01. The business had revenue of $549.84 million for the quarter, compared to the consensus estimate of $548.27 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The business's revenue for the quarter was up 29.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.19 EPS. As a group, equities research analysts anticipate that Dutch Bros Inc. will post 0.88 EPS for the current year.

Institutional Trading of Dutch Bros

Large investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP lifted its holdings in Dutch Bros by 38.0% in the 2nd quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company's stock worth $221,956,000 after buying an additional 851,075 shares in the last quarter. Bank of America Corp DE grew its stake in shares of 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 in the last quarter. Hyperion Asset Management Ltd grew its stake in shares of Dutch Bros by 104.4% during the third quarter. Hyperion Asset Management Ltd now owns 1,222,532 shares of the company's stock valued at $47,141,000 after acquiring an additional 624,488 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Dutch Bros by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,204,326 shares of the company's stock worth $60,994,000 after acquiring an additional 37,683 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its position in shares of 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. 85.54% of the stock is currently owned by institutional investors and hedge funds.

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. The company is known for its made-to-order drinks, fast service and community-focused brand.

Its menu includes hot, iced and blended coffee beverages, along with specialty drinks such as energy drinks, teas, lemonades, smoothies and other noncoffee refreshments. Dutch Bros also offers packaged products and branded merchandise through select locations and digital channels.

Dutch Bros was founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma.

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