Dutch Bros (NYSE:BROS) Trading Up 5.6% on Analyst Upgrade

Shares of Dutch Bros Inc. (NYSE:BROS) shot up 5.6% on Friday after Stephens upgraded the stock to a strong-buy rating. The company traded as high as $68.11 and last traded at $69.0150. 318,771 shares traded hands during trading, a decline of 93% from the average daily volume of 4,355,249 shares. The stock had previously closed at $65.35.

BROS has been the subject of several other reports. BNP Paribas Exane assumed coverage on Dutch Bros in a report on Monday, March 30th. They issued an “outperform” rating and a $73.00 target price for the company. Telsey Advisory Group started coverage on shares of Dutch Bros in a research report on Wednesday, April 8th. They set an “outperform” rating and a $66.00 price objective on the stock. Royal Bank Of Canada restated an “outperform” rating on shares of Dutch Bros in a research note on Wednesday, May 20th. Piper Sandler upped their target price on shares of Dutch Bros from $61.00 to $68.00 and gave the company a “neutral” rating in a report on Monday, June 22nd. Finally, KeyCorp increased their target price on shares of Dutch Bros from $77.00 to $79.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $77.50.

Insider Buying and Selling

In related news, Chairman Travis Boersma sold 750,000 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $63.02, for a total transaction of $47,265,000.00. Following the transaction, the chairman owned 2,410,800 shares of the company’s stock, valued at $151,928,616. This represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the sale, the insider directly owned 2,410,800 shares of the company’s stock, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 4,086,245 shares of company stock valued at $243,021,771. Company insiders own 38.90% of the company’s stock.

Institutional Trading of Dutch Bros

A number of institutional investors have recently added to or reduced their stakes in the stock. Osterweis Capital Management Inc. acquired a new stake in shares of Dutch Bros in the 2nd quarter worth approximately $27,000. Brown Lisle Cummings Inc. acquired a new position in Dutch Bros during the fourth quarter worth $31,000. Rakuten Securities Inc. boosted its position in Dutch Bros by 557.4% during the second quarter. Rakuten Securities Inc. now owns 447 shares of the company’s stock worth $31,000 after purchasing an additional 379 shares in the last quarter. Ankerstar Wealth LLC purchased a new stake in Dutch Bros during the fourth quarter worth $31,000. Finally, Quarry LP grew its holdings in Dutch Bros by 83.5% in the fourth quarter. Quarry LP now owns 600 shares of the company’s stock valued at $37,000 after purchasing an additional 273 shares during the last quarter. Hedge funds and other institutional investors own 85.54% of the company’s stock.

Dutch Bros Price Performance

The company has a market cap of $11.92 billion, a price-to-earnings ratio of 106.69, a price-to-earnings-growth ratio of 2.21 and a beta of 2.31. The company has a fifty day simple moving average of $61.73 and a two-hundred day simple moving average of $57.33. The company has a quick ratio of 1.19, a current ratio of 1.33 and a debt-to-equity ratio of 0.21.

Dutch Bros (NYSE:BROS) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.16 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.16. The business had revenue of $464.41 million during the quarter, compared to the consensus estimate of $449.69 million. Dutch Bros had a return on equity of 9.42% and a net margin of 4.61%.The business’s revenue was up 30.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.14 EPS. On average, equities research analysts anticipate that Dutch Bros Inc. will post 0.84 earnings per share for the current fiscal year.

About Dutch Bros

Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.

The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.