Wells Fargo & Company Has Lowered Expectations for Dutch Bros (NYSE:BROS) Stock Price

Dutch Bros (NYSE:BROS) had its target price decreased by equities research analysts at Wells Fargo & Company from $70.00 to $55.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has an “overweight” rating on the stock. Wells Fargo & Company’s target price indicates a potential upside of 29.10% from the stock’s current price.

A number of other brokerages have also commented on BROS. Raymond James Financial set a $59.00 price objective on Dutch Bros in a research report on Friday, September 18th. Jefferies Financial Group decreased their price target on Dutch Bros from $75.00 to $60.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. TD Cowen dropped their price objective on Dutch Bros from $59.00 to $55.00 and set a “buy” rating for the company in a report on Wednesday. Freedom Capital raised Dutch Bros to a “strong-buy” rating in a report on Wednesday, July 1st. Finally, Citigroup restated a “buy” rating on shares of Dutch Bros in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $69.84.

Dutch Bros Stock Down 2.8%

Shares of BROS opened at $42.60 on Wednesday. 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 debt-to-equity ratio of 0.20, a current ratio of 1.35 and a quick ratio of 1.19. Dutch Bros has a one year low of $36.51 and a one year high of $74.02. The company has a market capitalization of $7.44 billion, a P/E ratio of 59.40, a PEG ratio of 1.52 and a beta of 2.31.

Dutch Bros (NYSE:BROS) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.04. The firm had revenue of $550.85 million for the quarter, compared to analyst estimates of $525.38 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The company’s revenue was up 32.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.26 EPS. As a group, sell-side analysts predict that Dutch Bros will post 0.88 EPS for the current fiscal year.

Insider Buying and Selling at Dutch Bros

In related news, Director Todd Penegor purchased 2,000 shares of the business’s stock in a transaction dated Thursday, August 13th. The shares were bought at an average price of $51.56 per share, with a total value of $103,120.00. Following the purchase, the director directly owned 7,358 shares in the company, valued at $379,378.48. This trade represents a 37.33% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. 38.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dutch Bros

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

Key Headlines Impacting Dutch Bros

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

• Positive Sentiment: Dutch Bros has produced same-store sales growth for 13 consecutive quarters and plans to open approximately 185 locations this year. Investors may view the sustained demand and expansion opportunity as support for the company’s long-term growth narrative. Dutch Bros Stock Is Down 33% While Its Same-Store Sales Keep Growing
• Positive Sentiment: The recent share-price decline has reduced Dutch Bros’ valuation to roughly 58 times earnings, making the stock more appealing to growth investors than it was at higher prices. The valuation remains elevated, but the improved entry point may be helping support the stock. Dutch Bros Trades at 58 Times Earnings
• Positive Sentiment: Plans for additional drive-thru locations in Tacoma and Hoover indicate that Dutch Bros continues to expand its national footprint, emphasizing convenient service and customer experience. Dutch Bros Coffee Tacoma Expansion Plan
• Neutral Sentiment: Attention is shifting toward the company’s upcoming earnings report on November 4. Investors will likely focus on same-store sales, new-store openings and whether management remains on track to meet its expansion target. Did Upcoming Earnings Just Shift Dutch Bros Stock Narrative?
• Neutral Sentiment: New charity-focused collectible plushies could strengthen customer engagement and brand loyalty, but the products are unlikely to have a material near-term effect on earnings because all profits are being donated. Dutch Bros Collectible Plushies
• Negative Sentiment: Despite strong comparable-store sales, investors remain concerned that Dutch Bros may struggle to open all 185 planned stores, potentially making the premium valuation harder to justify. A proposed Hoover drive-thru also faces objections from a rival coffee shop, highlighting possible local approval and competitive hurdles. Dutch Bros Hoover Drive-Thru Proposal

About Dutch Bros

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.