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

Key Points

• Dutch Bros shares fell to a new 52-week low of $38.28, trading below both their 50-day and 200-day moving averages amid continued weakness.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus with an average price target of $75.36, substantially above the current price.
• The company recently beat quarterly expectations, reporting $0.33 in EPS and $550.85 million in revenue, up 32.5% year over year; an insider also purchased $103,120 worth of shares.

Dutch Bros Inc. (NYSE:BROS - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $38.28 and last traded at $39.07, with a volume of 6332000 shares. The stock had previously closed at $40.03.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Morgan Stanley lifted their price target on shares of Dutch Bros from $87.00 to $88.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Oppenheimer boosted their price objective on shares of Dutch Bros from $72.00 to $82.00 and gave the company an "outperform" rating in a research report on Tuesday, June 30th. Royal Bank Of Canada reduced their target price on shares of Dutch Bros from $75.00 to $70.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. UBS Group reissued a "neutral" rating on shares of Dutch Bros in a research note on Thursday, September 10th. Finally, Freedom Capital upgraded Dutch Bros to a "strong-buy" rating in a report on Wednesday, July 1st. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $75.36.

Dutch Bros Trading Down 2.4%

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 business's 50-day moving average is $53.60 and its two-hundred day moving average is $55.84. The firm has a market cap of $6.82 billion, a P/E ratio of 54.26, a P/E/G ratio of 1.43 and a beta of 2.28.

Dutch Bros (NYSE:BROS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.04. The company 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 quarterly revenue was up 32.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.26 EPS. As a group, analysts predict that Dutch Bros Inc. will post 0.87 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Todd Penegor purchased 2,000 shares of Dutch Bros stock in a transaction that occurred 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 owned 7,358 shares of the company's stock, valued at approximately $379,378.48. This trade represents a 37.33% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 38.90% of the company's stock.

Institutional Investors Weigh In On Dutch Bros

A number of institutional investors and hedge funds have recently made changes to their positions in BROS. Wellington Management Group LLP grew its stake in shares of 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 buying an additional 851,075 shares in the last quarter. Geode Capital Management LLC raised its position in Dutch Bros by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 2,265,083 shares of the company's stock worth $138,699,000 after acquiring an additional 39,349 shares in the last quarter. Bank of America Corp DE lifted its stake in Dutch Bros by 33.4% in 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 last quarter. Westfield Capital Management Co. LP acquired a new stake in Dutch Bros in the fourth quarter valued at $108,948,000. Finally, Norges Bank bought a new position in shares of Dutch Bros in the 4th quarter valued at about $96,951,000. Institutional investors own 85.54% of the company's stock.

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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