Royal Bank Of Canada Reiterates Outperform Rating for Dutch Bros (NYSE:BROS)

Key Points

• Royal Bank of Canada has reiterated an outperform rating for Dutch Bros (NYSE:BROS), with a price target of $85.00, suggesting a potential upside of 53.21% from its previous close.
• Insider sales activity included Chairman Travis Boersma selling 1,250,371 shares, representing a 49.43% decrease in his ownership, while total insider sales over the last three months reached approximately $207.6 million.
• Dutch Bros reported a 28.0% increase in quarterly revenue year-over-year, with an earnings per share (EPS) of $0.26, beating analyst expectations.

Dutch Bros (NYSE:BROS - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Royal Bank Of Canada in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $85.00 price target on the stock. Royal Bank Of Canada's price target indicates a potential upside of 53.21% from the stock's previous close.

Several other research analysts also recently commented on the stock. CICC Research began coverage on shares of Dutch Bros in a research report on Monday, June 30th. They set an "outperform" rating and a $80.00 price objective for the company. UBS Group boosted their price target on Dutch Bros from $80.00 to $85.00 and gave the stock a "buy" rating in a report on Thursday, August 28th. TD Cowen reaffirmed a "buy" rating and issued a $86.00 price objective on shares of Dutch Bros in a research note on Tuesday, August 19th. Morgan Stanley reissued an "overweight" rating and set a $84.00 target price (up previously from $80.00) on shares of Dutch Bros in a research note on Thursday, August 7th. Finally, Barclays raised their price target on shares of Dutch Bros from $84.00 to $92.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $80.06.

Dutch Bros Price Performance

BROS stock traded up $0.13 during midday trading on Wednesday, reaching $55.48. The company had a trading volume of 387,099 shares, compared to its average volume of 3,253,360. Dutch Bros has a 1-year low of $30.49 and a 1-year high of $86.88. The stock has a 50 day moving average price of $64.00 and a 200-day moving average price of $64.56. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.64 and a quick ratio of 1.42. The company has a market capitalization of $9.13 billion, a price-to-earnings ratio of 118.02, a price-to-earnings-growth ratio of 3.06 and a beta of 2.64.

Dutch Bros (NYSE:BROS - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.18 by $0.08. The firm had revenue of $415.81 million for the quarter, compared to analyst estimates of $403.24 million. Dutch Bros had a net margin of 3.94% and a return on equity of 8.86%. The business's quarterly revenue was up 28.0% compared to the same quarter last year. During the same period last year, the firm earned $0.19 EPS. Equities research analysts expect that Dutch Bros will post 0.57 earnings per share for the current year.

Insider Transactions at Dutch Bros

In other Dutch Bros news, Chairman Travis Boersma sold 1,250,371 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $65.17, for a total value of $81,486,678.07. Following the transaction, the chairman directly owned 1,279,144 shares of the company's stock, valued at approximately $83,361,814.48. The trade was a 49.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Dm Individual Aggregator, Llc sold 482,750 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $65.17, for a total transaction of $31,460,817.50. Following the sale, the insider directly owned 1,279,144 shares of the company's stock, valued at approximately $83,361,814.48. This trade represents a 27.40% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 3,161,101 shares of company stock worth $207,633,882 over the last three months. 42.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. 1832 Asset Management L.P. raised its holdings in shares of Dutch Bros by 29.9% during the first quarter. 1832 Asset Management L.P. now owns 3,420,200 shares of the company's stock valued at $211,163,000 after purchasing an additional 788,100 shares during the period. Marshall Wace LLP grew its stake in shares of Dutch Bros by 139.2% in the 2nd quarter. Marshall Wace LLP now owns 2,509,767 shares of the company's stock valued at $171,593,000 after buying an additional 1,460,376 shares during the period. Invesco Ltd. increased its position in Dutch Bros by 70.9% in the 2nd quarter. Invesco Ltd. now owns 2,333,142 shares of the company's stock valued at $159,517,000 after buying an additional 967,861 shares in the last quarter. Geode Capital Management LLC raised its stake in Dutch Bros by 14.0% during the 2nd quarter. Geode Capital Management LLC now owns 2,173,710 shares of the company's stock worth $148,643,000 after buying an additional 267,074 shares during the period. Finally, State Street Corp raised its stake in Dutch Bros by 6.6% during the 2nd quarter. State Street Corp now owns 1,978,441 shares of the company's stock worth $135,266,000 after buying an additional 121,683 shares during the period. 85.54% of the stock is owned by institutional investors.

About Dutch Bros

Dutch Bros Inc, together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands.

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