Dutch Bros (NYSE:BROS) Rating Lowered to “Strong Sell” at Zacks Research

Dutch Bros (NYSE:BROS) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday, Zacks reports.

Several other equities research analysts have also recently commented on the company. Wells Fargo & Company dropped their price objective on Dutch Bros from $55.00 to $50.00 and set an “overweight” rating on the stock in a research report on Thursday, November 5th. UBS Group decreased their target price on Dutch Bros from $85.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, October 26th. Gordon Haskett began coverage on shares of Dutch Bros in a research note on Thursday, November 5th. They set a “strong-buy” rating on the stock. JPMorgan Chase & Co. dropped their price target on shares of Dutch Bros from $75.00 to $60.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. Finally, Stephens dropped their target price on shares of Dutch Bros from $65.00 to $47.00 and set an “overweight” rating on the stock in a report on Thursday, November 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $61.08.

Dutch Bros Stock Up 6.6%

BROS stock traded up $2.24 during midday trading on Thursday, hitting $35.95. The company’s stock had a trading volume of 6,217,822 shares, compared to its average volume of 5,546,611. The firm’s 50-day moving average is $40.17 and its 200-day moving average is $52.27. The company has a current ratio of 1.03, a quick ratio of 0.88 and a debt-to-equity ratio of 0.19. Dutch Bros has a 12 month low of $33.17 and a 12 month high of $74.02. The company has a market cap of $6.28 billion, a PE ratio of 46.09, a P/E/G ratio of 1.14 and a beta of 1.97.

Dutch Bros (NYSE:BROS) last posted its earnings results on Wednesday, November 4th. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.01. Dutch Bros had a return on equity of 10.46% and a net margin of 5.08%. The business had revenue of $549.84 million during the quarter, compared to analyst estimates of $548.27 million. During the same quarter last year, the company earned $0.19 EPS. The company’s quarterly revenue was up 29.8% compared to the same quarter last year. On average, equities research analysts forecast that Dutch Bros will post 0.81 earnings per share for the current fiscal year.

Insider Buying and Selling at Dutch Bros

In other news, Chairman Travis Boersma sold 1,032,216 shares of the company’s stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $44.73, for a total value of $46,171,021.68. Following the completion of the sale, the chairman directly owned 1,366,580 shares in the company, valued at $61,127,123.40. This represents a 43.03% decrease in their position. The transaction was disclosed in a document filed 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 359,284 shares of the firm’s stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $44.73, for a total value of $16,070,773.32. Following the completion of the transaction, the insider directly owned 1,366,580 shares in the company, valued at approximately $61,127,123.40. This represents a 20.82% 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. Insiders have sold a total of 4,044,220 shares of company stock worth $179,732,644 in the last quarter. Corporate insiders own 38.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Ancora Advisors LLC bought a new position in shares of Dutch Bros in the second quarter worth approximately $29,000. Archer Investment Corp bought a new stake in shares of Dutch Bros during the 2nd quarter valued at $101,000. Bessemer Group Inc. raised its position in shares of Dutch Bros by 243.8% during the 3rd quarter. Bessemer Group Inc. now owns 1,420 shares of the company’s stock valued at $56,000 after purchasing an additional 1,007 shares during the period. GK Wealth Management LLC purchased a new position in shares of Dutch Bros during the 3rd quarter valued at $56,000. Finally, State of Wyoming purchased a new position in shares of Dutch Bros during the 3rd quarter valued at $66,000. 85.54% of the stock is currently owned by institutional investors.

Recent Dutch Bros Headlines

Investors following BROS have been watching these headlines:

• Positive Sentiment: Dutch Bros plans to open 250 shops in 2027, aiming to extend its market reach and build on shop economics. The plan carries a risk that new locations could take sales from existing shops. Article: Can Dutch Bros’ 250-Shop Plan Deliver Growth Despite Cannibalization?
• Positive Sentiment: The company’s Q3 earnings-call coverage highlighted growth and expansion, reinforcing its growth story. Article: Dutch Bros Earnings Call Highlights Growth and Expansion
• Neutral Sentiment: Dutch Bros named Kira Druyan chief legal officer as expansion continues; the appointment is not described as changing its financial outlook. Article: Dutch Bros Names Kira Druyan Chief Legal Officer As Expansion Continues

About Dutch Bros

Dutch Bros Inc. is a drive-through beverage company that operates the Dutch Bros coffee shop brand. Founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma, the company began as a small coffee pushcart and has grown into a multistate U.S. chain. Dutch Bros has expanded from its roots in the western United States into additional regions across the country. Christine Barone serves as the company’s chief executive officer, and co-founder Travis Boersma is its executive chairman.