Dutch Bros (NYSE:BROS) Cut to “Sector Perform” at Royal Bank Of Canada

Royal Bank Of Canada cut shares of Dutch Bros (NYSE:BROS) from an outperform rating to a sector perform rating in a report released on Thursday morning, Marketbeat.com reports. Royal Bank Of Canada currently has $46.00 price target on the stock, down from their previous price target of $70.00.

Other analysts have also issued research reports about the company. UBS Group restated a “neutral” rating on shares of Dutch Bros in a research note on Thursday, September 10th. Melius Research reduced their target price on Dutch Bros from $95.00 to $70.00 and set a “buy” rating for the company in a research note on Friday, September 18th. Raymond James Financial set a $59.00 target price on Dutch Bros in a research note on Friday, September 18th. Freedom Capital raised Dutch Bros to a “strong-buy” rating in a report on Wednesday, July 1st. Finally, Seaport Research Partners assumed coverage on Dutch Bros in a research note on Wednesday, September 16th. They issued a “buy” rating and a $50.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $67.44.

Dutch Bros Stock Down 0.4%

Shares of BROS stock opened at $41.57 on Thursday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35. The firm’s 50-day moving average is $43.17 and its 200-day moving average is $53.93. The stock has a market cap of $7.26 billion, a price-to-earnings ratio of 57.74, a PEG ratio of 1.47 and a beta of 2.31. Dutch Bros has a 52-week low of $36.51 and a 52-week high of $74.02.

Dutch Bros (NYSE:BROS) last issued its earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.04. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The business had revenue of $550.85 million during the quarter, compared to the consensus estimate of $525.38 million. During the same period last year, the business posted $0.26 EPS. Dutch Bros’s revenue was up 32.5% on a year-over-year basis. Sell-side analysts predict that Dutch Bros will post 0.88 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Dm Individual Aggregator, Llc sold 50,709 shares of Dutch Bros stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $44.01, for a total transaction of $2,231,703.09. Following the completion of the sale, the insider owned 2,360,091 shares of the company’s stock, valued at approximately $103,867,604.91. The trade was a 2.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Todd Penegor purchased 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average price of $51.56 per share, for a total transaction of $103,120.00. Following the purchase, the director owned 7,358 shares in the company, valued at $379,378.48. The trade was a 37.33% increase in their position. The SEC filing for this purchase provides additional information. 38.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dutch Bros

A number of institutional investors have recently made changes to their positions in BROS. Hyperion Asset Management Ltd bought a new position in shares of Dutch Bros during the second quarter worth approximately $42,946,000. Empowered Funds LLC acquired a new stake in Dutch Bros during the 1st quarter worth approximately $1,309,000. Independent Financial Group LLC bought a new stake in Dutch Bros in the 1st quarter valued at $1,164,000. California State Teachers Retirement System boosted its stake in Dutch Bros by 19.2% in the 1st quarter. California State Teachers Retirement System now owns 147,011 shares of the company’s stock valued at $7,448,000 after purchasing an additional 23,679 shares during the period. Finally, Stephens Investment Management Group LLC boosted its stake in Dutch Bros by 9.5% in the 1st quarter. Stephens Investment Management Group LLC now owns 333,057 shares of the company’s stock valued at $16,873,000 after purchasing an additional 28,776 shares during the period. Institutional investors own 85.54% of the company’s stock.

More Dutch Bros News

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

• Positive Sentiment: KeyCorp lowered its price target from $79 to $59 but maintained an “overweight” rating. The new target still implies substantial upside from recent trading levels, indicating that KeyCorp believes the recent selloff may have created an opportunity. KeyCorp Dutch Bros analyst rating
• Positive Sentiment: Dutch Bros continues expanding its drive-thru footprint, including a Peoria, Illinois, opening this weekend and a Wichita Falls, Texas, location planned for 2027. New stores support the company’s long-term revenue-growth strategy. Dutch Bros Coffee coming to Wichita Falls in 2027
• Neutral Sentiment: Dutch Bros locations in Oregon are donating part of Friday’s proceeds to Silver Rail Elementary following a deadly shooting. The initiative may strengthen community goodwill and brand engagement, but it is unlikely to materially affect near-term financial results. Oregon Dutch Bros giveback supports Silver Rail school community
• Negative Sentiment: RBC downgraded BROS from “outperform” to “sector perform” and reduced its price target from $70 to $46, citing the likelihood of heavier competition in 2027. TD Cowen and Citigroup also issued more cautious forecasts, adding to selling pressure. RBC downgrades Dutch Bros
• Negative Sentiment: Chairman Travis Boersma sold approximately $6.4 million of shares, and major shareholder DM Individual Aggregator sold about $2.2 million. Both transactions were made under pre-arranged Rule 10b5-1 plans, reducing their informational significance, but the sales may still weigh on investor sentiment.

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.