Dutch Bros (NYSE:BROS) Downgraded by Wall Street Zen to Sell

Wall Street Zen cut shares of Dutch Bros (NYSE:BROS) from a hold rating to a sell rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

BROS has been the subject of several other research reports. 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. Robert W. Baird dropped their price target on Dutch Bros from $82.00 to $60.00 and set an “outperform” rating on the stock in a research report on Friday, October 2nd. Stephens reduced their price target on Dutch Bros from $65.00 to $47.00 and set an “overweight” rating on the stock in a research note on Thursday. Telsey Advisory Group decreased their price objective on Dutch Bros from $74.00 to $56.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Raymond James Financial set a $59.00 price objective on Dutch Bros in a research report on Friday, September 18th. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Dutch Bros currently has a consensus rating of “Moderate Buy” and an average target price of $61.62.

Dutch Bros Price Performance

Shares of NYSE BROS opened at $33.81 on Friday. 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 current ratio of 1.03 and a quick ratio of 1.19. The company’s 50-day moving average is $41.44 and its 200 day moving average is $52.88. The stock has a market capitalization of $5.91 billion, a P/E ratio of 43.35, a P/E/G ratio of 1.05 and a beta of 1.97.

Dutch Bros (NYSE:BROS) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.01. Dutch Bros had a net margin of 5.08% and a return on equity of 10.46%. The company had revenue of $549.84 million during the quarter, compared to the consensus estimate of $548.27 million. During the same period in the prior year, the firm earned $0.19 earnings per share. Dutch Bros’s revenue was up 29.8% on a year-over-year basis. On average, sell-side analysts expect that Dutch Bros will post 0.88 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Dm Individual Aggregator, Llc sold 359,284 shares of the company’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 $16,070,773.32. Following the transaction, the insider owned 1,366,580 shares in the company, valued at $61,127,123.40. The trade was a 20.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 the stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total transaction of $46,171,021.68. Following the sale, the chairman directly owned 1,366,580 shares in the company, valued at $61,127,123.40. This trade represents a 43.03% 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. Over the last three months, insiders sold 4,044,220 shares of company stock worth $179,732,644. Insiders own 38.90% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BROS. Hyperion Asset Management Ltd bought a new stake in Dutch Bros in the 2nd quarter worth approximately $42,946,000. Empowered Funds LLC bought a new position in shares of Dutch Bros in the first quarter worth approximately $1,309,000. Independent Financial Group LLC purchased a new stake in Dutch Bros in the 1st quarter worth $1,164,000. California State Teachers Retirement System grew its position in shares of Dutch Bros by 19.2% during the first quarter. California State Teachers Retirement System now owns 147,011 shares of the company’s stock worth $7,448,000 after purchasing an additional 23,679 shares in the last quarter. Finally, Entropy Technologies LP purchased a new stake in Dutch Bros during the 1st quarter valued at approximately $2,112,000. 85.54% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Dutch Bros

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

• Positive Sentiment: Q3 revenue rose about 30% year over year to roughly $550 million, narrowly beating estimates, while earnings of $0.25 per share topped the $0.24 consensus. Dutch Bros Q3 earnings and revenues
• Positive Sentiment: The company plans approximately 250 system shop openings in 2027, supporting its longer-term expansion plans. Dutch Bros: 3 key takeaways
• Positive Sentiment: Citigroup lowered its price target to $64 but maintained a Buy rating; a separate analysis argues BROS may be undervalued after the results. Dutch Bros could be undervalued
• Neutral Sentiment: Dutch Bros unveiled its 2026 holiday menu, a product update that could support customer interest but is not yet shown to materially change the outlook. Dutch Bros unveils 2026 holiday menu
• Negative Sentiment: Investors focused on slowing Q3 traffic and a reduced EBITDA forecast, along with a cautious outlook for sales growth. Those concerns outweighed the quarterly earnings beat and drove a sharp post-results selloff. Shares drop as sales growth slows and EBITDA forecast is reduced
• Negative Sentiment: Several analysts cut price targets after the report, including RBC to $38 and Oppenheimer and BNP Paribas Exane to $54, reflecting a more cautious near-term view. Analysts cut forecasts after Q3 results
• Negative Sentiment: Chairman Travis Boersma and major shareholder DM Individual Aggregator sold substantial shareholdings. The sales were under pre-arranged trading plans, but may still weigh on sentiment. Insider share sales

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.