Dutch Bros (NYSE:BROS) Stock Falls 4.6% on Analyst Downgrade

Dutch Bros Inc. (NYSE:BROS)’s stock price traded down 4.6% during trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $70.00 to $55.00. Wells Fargo & Company currently has an overweight rating on the stock. Dutch Bros traded as low as $42.44 and last traded at $41.8010. Approximately 282,810 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 4,282,445 shares. The stock had previously closed at $43.82.

BROS has been the topic of several other reports. Weiss Ratings upgraded shares of Dutch Bros from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Melius Research cut their target price on shares of Dutch Bros from $95.00 to $70.00 and set a “buy” rating on the stock in a research note on Friday, September 18th. Oppenheimer reissued a “positive” rating on shares of Dutch Bros in a research note on Wednesday, September 30th. Stephens reduced their target price on Dutch Bros from $80.00 to $65.00 and set an “overweight” rating for the company in a report on Thursday, October 15th. Finally, Raymond James Financial set a $59.00 target price on Dutch Bros in a research report on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $69.84.

Insider Buying and Selling at Dutch Bros

In other Dutch Bros news, Director Todd Penegor bought 2,000 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were bought at an average price of $51.56 per share, for a total transaction of $103,120.00. Following the acquisition, the director directly owned 7,358 shares of the company’s stock, valued at approximately $379,378.48. This trade represents a 37.33% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 38.90% of the stock is owned by corporate insiders.

Dutch Bros News Summary

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

• Positive Sentiment: Wells Fargo maintained an “overweight” rating and TD Cowen maintained a “buy” rating. Although both firms reduced their price targets to $55, that target still implies substantial potential upside from recent levels, suggesting analysts believe the recent selloff may be overdone. Benzinga and Tickerreport analyst coverage
• Positive Sentiment: Dutch Bros continues to report same-store sales growth—now for 13 consecutive quarters—and plans to open approximately 185 stores this year. Its drive-thru-focused model, brand culture and beverage customization remain important growth drivers. Same-store sales and store expansion article
• Neutral Sentiment: Investors are increasingly focused on the upcoming earnings report, scheduled for November 4. Results will indicate whether sustained same-store sales momentum and new-store openings are sufficient to support the company’s growth outlook and valuation. Upcoming earnings article
• Neutral Sentiment: Potential new locations in Tacoma, Washington, and Hoover, Alabama, highlight Dutch Bros’ ongoing geographic expansion. However, the Hoover proposal faces objections from a competing coffee shop, creating some uncertainty around that site. Tacoma expansion article
• Negative Sentiment: The reductions in price targets from both Wells Fargo and TD Cowen signal more cautious expectations, even though both firms remain bullish. Investors also remain concerned about whether Dutch Bros can achieve its store-opening target and justify its premium valuation after the recent decline. Dutch Bros valuation article

Institutional Trading of Dutch Bros

Several institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP grew its position in Dutch Bros by 38.0% during the second quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company’s stock valued at $221,956,000 after purchasing an additional 851,075 shares in the last quarter. Bank of America Corp DE lifted its position in Dutch Bros by 33.4% in the 1st quarter. Bank of America Corp DE now owns 1,814,815 shares of the company’s stock worth $91,939,000 after buying an additional 454,036 shares in the last quarter. Wasatch Advisors LP lifted its position in Dutch Bros by 17.8% in the 2nd quarter. Wasatch Advisors LP now owns 1,038,903 shares of the company’s stock worth $74,604,000 after buying an additional 157,098 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Dutch Bros by 3.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,204,326 shares of the company’s stock worth $60,994,000 after buying an additional 37,683 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in shares of Dutch Bros by 58.1% during the 1st quarter. Bank of New York Mellon Corp now owns 1,044,545 shares of the company’s stock valued at $52,917,000 after buying an additional 384,011 shares during the period. 85.54% of the stock is currently owned by institutional investors and hedge funds.

Dutch Bros Stock Down 4.0%

The business’s 50 day simple moving average is $43.74 and its 200-day simple moving average is $54.13. The company has a market cap of $7.35 billion, a price-to-earnings ratio of 58.41, a price-to-earnings-growth ratio of 1.52 and a beta of 2.31. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35.

Dutch Bros (NYSE:BROS) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.29 by $0.04. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The business had revenue of $550.85 million for the quarter, compared to analysts’ expectations of $525.38 million. During the same period in the previous year, the company posted $0.26 EPS. Dutch Bros’s revenue was up 32.5% on a year-over-year basis. Sell-side analysts expect that Dutch Bros Inc. will post 0.88 earnings per share for the current year.

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.