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

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

A number of other equities research analysts also recently issued reports on the company. Seaport Research Partners began coverage on Dutch Bros in a research note on Wednesday, September 16th. They set a “buy” rating and a $50.00 price target for the company. Robert W. Baird lowered their price objective on shares of Dutch Bros from $82.00 to $60.00 and set an “outperform” rating on the stock in a research note on Friday, October 2nd. TD Cowen lowered their price objective on shares of Dutch Bros from $55.00 to $50.00 and set a “buy” rating on the stock in a research note on Thursday, November 5th. Jefferies Financial Group dropped their price objective 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, Stifel Nicolaus started coverage on shares of Dutch Bros in a research report on Monday, November 9th. They set a “buy” rating and a $48.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Dutch Bros currently has an average rating of “Moderate Buy” and a consensus target price of $61.08.

Dutch Bros Stock Performance

Shares of BROS stock traded up $2.24 on Thursday, reaching $35.95. The stock had a trading volume of 6,217,822 shares, compared to its average volume of 5,546,611. The stock has a market cap of $6.28 billion, a P/E ratio of 46.09, a price-to-earnings-growth ratio of 1.14 and a beta of 1.97. Dutch Bros has a 1 year low of $33.17 and a 1 year high of $74.02. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.88 and a current ratio of 1.03. The company has a 50 day simple moving average of $40.17 and a 200 day simple moving average of $52.27.

Dutch Bros (NYSE:BROS) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.25 EPS for the quarter, beating 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 company had revenue of $549.84 million during the quarter, compared to analysts’ expectations of $548.27 million. During the same quarter in the prior year, the business earned $0.19 earnings per share. Dutch Bros’s revenue for the quarter was up 29.8% compared to the same quarter last year. Equities research analysts expect that Dutch Bros will post 0.81 EPS for the current year.

Insider Activity

In other news, major shareholder Dm Individual Aggregator, Llc sold 359,284 shares of the firm’s stock in a transaction dated 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 transaction, the insider owned 1,366,580 shares of the company’s stock, valued at $61,127,123.40. This trade represents a 20.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 1,032,216 shares of Dutch Bros 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 transaction, 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 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. Insiders have sold 4,044,220 shares of company stock valued at $179,732,644 in the last three months. 38.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dutch Bros

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BROS. Empowered Funds LLC lifted its holdings in Dutch Bros by 6.6% during the third quarter. Empowered Funds LLC now owns 35,035 shares of the company’s stock valued at $1,351,000 after purchasing an additional 2,160 shares in the last quarter. Caxton Associates LLP increased its stake in shares of Dutch Bros by 1,121.8% in the third quarter. Caxton Associates LLP now owns 45,010 shares of the company’s stock worth $1,736,000 after purchasing an additional 41,326 shares in the last quarter. Polymer Capital Management US LLC increased its stake in shares of Dutch Bros by 6.0% in the third quarter. Polymer Capital Management US LLC now owns 34,032 shares of the company’s stock worth $1,312,000 after purchasing an additional 1,934 shares in the last quarter. AlphaGrep UK Ltd bought a new stake in shares of Dutch Bros during the 3rd quarter valued at $433,000. Finally, First Trust Advisors LP raised its position in shares of Dutch Bros by 288.4% during the 3rd quarter. First Trust Advisors LP now owns 144,850 shares of the company’s stock valued at $5,585,000 after purchasing an additional 107,556 shares during the period. Institutional investors own 85.54% of the company’s stock.

More Dutch Bros News

These are some of the BROS news items that stood out recently:

• 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

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.