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

Zacks Research cut shares of Dutch Bros (NYSE:BROS) from a hold rating to a strong sell rating in a report issued on Thursday morning,Zacks reports.

Other equities analysts have also issued reports about the stock. Royal Bank Of Canada set a $50.00 target price on shares of Dutch Bros in a report on Thursday, November 5th. Seaport Research Partners initiated coverage on shares of Dutch Bros in a research note on Wednesday, September 16th. They issued a “buy” rating and a $50.00 price target for the company. Telsey Advisory Group cut their price target on shares of Dutch Bros from $74.00 to $56.00 and set an “outperform” rating for the company in a report on Thursday, November 5th. Oppenheimer reduced their price target on shares of Dutch Bros from $66.00 to $54.00 and set an “outperform” rating on the stock in a research report on Thursday, November 5th. Finally, Citigroup reduced their price target on shares of Dutch Bros from $69.00 to $64.00 and set a “buy” rating on the stock in a research report on Friday, November 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Dutch Bros presently has an average rating of “Moderate Buy” and a consensus target price of $61.08.

Dutch Bros Trading Up 6.6%

Shares of BROS stock traded up $2.24 on Thursday, hitting $35.95. 6,217,822 shares of the stock traded hands, compared to its average volume of 5,546,611. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.88 and a current ratio of 1.03. Dutch Bros has a twelve month low of $33.17 and a twelve month high of $74.02. The firm’s 50-day moving average price is $40.17 and its two-hundred day moving average price is $52.27. The stock has a market capitalization of $6.28 billion, a PE ratio of 46.09, a PEG ratio of 1.14 and a beta of 1.97.

Dutch Bros (NYSE:BROS) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.01. Dutch Bros had a net margin of 5.08% and a return on equity of 10.46%. The firm had revenue of $549.84 million during the quarter, compared to analysts’ expectations of $548.27 million. During the same period last year, the business earned $0.19 earnings per share. Dutch Bros’s revenue was up 29.8% compared to the same quarter last year. As a group, analysts anticipate that Dutch Bros will post 0.81 EPS for the current year.

Insiders Place Their Bets

In related news, Chairman Travis Boersma sold 1,032,216 shares of the business’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total value of $46,171,021.68. Following the sale, the chairman directly owned 1,366,580 shares in the company, valued at approximately $61,127,123.40. The trade was a 43.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through 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 business’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total transaction of $16,070,773.32. Following the completion of the sale, the insider owned 1,366,580 shares in the company, valued at approximately $61,127,123.40. This trade represents a 20.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 4,044,220 shares of company stock valued at $179,732,644. Company insiders own 38.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of 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. Stephens Investment Management Group LLC raised its holdings in shares of Dutch Bros by 74.9% in the 3rd quarter. Stephens Investment Management Group LLC now owns 1,634,512 shares of the company’s stock valued at $63,027,000 after buying an additional 700,008 shares during the period. Danica Pension Livsforsikringsaktieselskab acquired a new position in Dutch Bros during the 1st quarter worth about $33,569,000. Hyperion Asset Management Ltd lifted its stake in Dutch Bros by 104.4% during the 3rd quarter. Hyperion Asset Management Ltd now owns 1,222,532 shares of the company’s stock worth $47,141,000 after acquiring an additional 624,488 shares in the last quarter. Finally, Bank of America Corp DE lifted its stake in Dutch Bros by 33.4% during the 1st quarter. Bank of America Corp DE now owns 1,814,815 shares of the company’s stock worth $91,939,000 after acquiring an additional 454,036 shares in the last quarter. Hedge funds and other institutional investors own 85.54% of the company’s stock.

Key Stories Impacting Dutch Bros

These are some of the BROS stories that stood out recently:

• Neutral Sentiment: Dutch Bros plans a second location in Springfield, adding to its store rollout, though the article provides no details on expected sales or timing. Article: Dutch Bros Coffee plans 2nd Springfield location
• 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
• Negative Sentiment: Zacks added BROS to its Rank #5 (Strong Sell) list, a bearish analyst signal that could pressure the stock. Article: New Strong Sell Stocks for November 13th

Dutch Bros Company Profile

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.