Oppenheimer Has Lowered Expectations for Dutch Bros (NYSE:BROS) Stock Price

Dutch Bros (NYSE:BROS) had its price objective reduced by equities researchers at Oppenheimer from $82.00 to $66.00 in a report issued on Wednesday, Benzinga reports. The firm presently has an “outperform” rating on the stock. Oppenheimer’s target price suggests a potential upside of 67.86% from the company’s previous close.

A number of other brokerages have also issued reports on BROS. Citigroup reiterated a “buy” rating on shares of Dutch Bros in a research report on Thursday, August 6th. Seaport Research Partners initiated coverage on shares of Dutch Bros in a research report on Wednesday, September 16th. They issued a “buy” rating and a $50.00 price target for the company. Freedom Capital raised shares of Dutch Bros to a “strong-buy” rating in a research note on Wednesday, July 1st. Piper Sandler lifted their price target on shares of Dutch Bros from $61.00 to $68.00 and gave the stock a “neutral” rating in a report on Monday, June 22nd. Finally, Stephens reissued an “overweight” rating and issued a $80.00 price objective on shares of Dutch Bros in a research note on Thursday, August 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $72.38.

Dutch Bros Price Performance

BROS traded up $1.22 on Wednesday, reaching $39.32. The stock had a trading volume of 532,938 shares, compared to its average volume of 4,275,098. The company has a current ratio of 1.35, a quick ratio of 1.19 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $6.87 billion, a price-to-earnings ratio of 55.01, a price-to-earnings-growth ratio of 1.34 and a beta of 2.28. Dutch Bros has a fifty-two week low of $37.40 and a fifty-two week high of $74.02. The firm has a 50-day moving average of $50.32 and a 200-day moving average of $55.24.

Dutch Bros (NYSE:BROS) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 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%.The business’s revenue for the quarter was up 32.5% on a year-over-year basis. During the same period last year, the firm posted $0.26 earnings per share. As a group, sell-side analysts anticipate that Dutch Bros will post 0.88 EPS for the current year.

Insider Buying and Selling at Dutch Bros

In other news, Director Todd Penegor acquired 2,000 shares of the firm’s stock in a transaction dated Thursday, August 13th. The stock was bought at an average cost of $51.56 per share, for a total transaction of $103,120.00. Following the completion of the transaction, the director directly owned 7,358 shares in the company, valued at $379,378.48. This represents a 37.33% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 38.90% of the stock is currently owned by company insiders.

Institutional Trading of Dutch Bros

A number of institutional investors have recently bought and sold shares of BROS. Ancora Advisors LLC bought a new position in shares of Dutch Bros in the 2nd quarter worth about $29,000. Brown Lisle Cummings Inc. increased its holdings in Dutch Bros by 63.8% in the first quarter. Brown Lisle Cummings Inc. now owns 819 shares of the company’s stock worth $41,000 after purchasing an additional 319 shares in the last quarter. Glen Eagle Advisors LLC acquired a new position in Dutch Bros in the fourth quarter valued at approximately $74,000. Nemes Rush Group LLC boosted its holdings in shares of Dutch Bros by 25.9% during the 4th quarter. Nemes Rush Group LLC now owns 1,360 shares of the company’s stock worth $83,000 after buying an additional 280 shares in the last quarter. Finally, Archer Investment Corp acquired a new stake in shares of Dutch Bros during the 2nd quarter worth approximately $101,000. 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: Analysts still see substantial upside. DA Davidson reduced its price target from $85 to $60 but maintained a Buy rating, while JPMorgan and Jefferies also set $60 targets with Overweight ratings. Those targets imply significant appreciation from the recent share price, suggesting analysts view the selloff as excessive and expect long-term growth to continue. DA Davidson Cut Its Dutch Bros Target
• Positive Sentiment: Store expansion remains active. Dutch Bros plans new locations in Junction City and the Columbus area, is pursuing former Salad and Go sites, and recently opened a shop in Champaign. Continued unit growth could support revenue expansion and strengthen the company’s national footprint. Dutch Bros Coffee plans three Columbus-area shops
• Neutral Sentiment: The long-term growth thesis remains under review. Recent commentary focuses on whether Dutch Bros’ larger capital budget can generate sufficient returns and whether the company’s expansion plans justify its valuation. The stock remains well below its 52-week high, while its elevated earnings multiple leaves it sensitive to changes in growth expectations. Does Dutch Bros’ Bigger Capex And Dropped Deal Reframe The Long-Term Growth Story
• Negative Sentiment: Higher investment and a lost bidding war pressured the stock. A reported 49% increase in capital expenditures raised concerns about near-term cash use and returns. Dutch Bros also failed to win a deal for additional locations, removing a potential source of faster growth. These issues prompted several analysts to lower their targets to $60, despite retaining constructive ratings. Analyst target reduction and Dutch Bros capital spending concerns

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.