Dutch Bros Inc. (NYSE:BROS) has garnered an average recommendation of “Buy” from twenty-two research firms, according to Marketbeat.com. The company’s stock, currently priced at approximately $65.17, has received mixed ratings; three analysts suggest a hold, while sixteen advocate for a buy and three recommend a strong buy.
The average target price set by brokerages covering the stock over the past year stands at $77.39. Notable firms have recently updated their recommendations. For instance, Mizuho established a target price of $70.00 on October 16, 2023. In contrast, Wells Fargo & Company lowered their target from $80.00 to $70.00 but maintained an “overweight” rating. Similarly, the Goldman Sachs Group adjusted their price target from $81.00 to $72.00, assigning a “neutral” rating.
In a more optimistic stance, Bank of America raised its target price for Dutch Bros from $80.00 to $84.00, also categorizing the stock as “overweight.” CICC Research initiated coverage on the company with an “outperform” rating and a target price of $80.00.
Recent Earnings and Stock Performance
Dutch Bros reported its quarterly earnings on August 6, 2023, revealing earnings per share (EPS) of $0.26, exceeding analyst expectations of $0.18 by $0.08. The company achieved a net margin of 3.94% and a return on equity of 8.86%. Revenue for the quarter reached $415.81 million, surpassing the consensus estimate of $403.24 million. This figure represents a remarkable 28.0% increase compared to the same quarter last year.
Sell-side analysts predict an EPS of $0.57 for the current fiscal year, indicating continued confidence in the company’s growth trajectory.
Insider Activity and Institutional Investment
Recent insider transactions have drawn attention. On August 22, 2023, major shareholder Dm Individual Aggregator, LLC sold 482,750 shares at an average price of $65.17, totaling approximately $31.46 million. Following this transaction, they retained 1,279,144 shares, valued at about $83.36 million, marking a 27.40% decrease in their ownership.
Additionally, Chairman Travis Boersma sold 787,681 shares on August 25, 2023, for around $54.30 million. After this sale, Boersma directly owned 975,031 shares, worth approximately $67.22 million, which reflects a significant 44.69% decrease in his position.
In the last three months, insiders have sold a total of 3,161,101 shares, amounting to nearly $207.63 million. Currently, corporate insiders hold 42.40% of the company’s stock.
Among institutional investors, several hedge funds have altered their stakes in Dutch Bros. 1832 Asset Management L.P. increased its stake by 29.9%, now owning 3,420,200 shares valued at approximately $211.16 million. Other notable changes include Ninety One UK Ltd’s new position worth around $135.34 million, and Marshall Wace LLP’s stake increase by 139.2% in the second quarter.
As of now, hedge funds and other institutional investors control 85.54% of Dutch Bros’ stock, reflecting strong institutional confidence in the company.
Dutch Bros Inc. operates and franchises drive-thru coffee shops across the United States, offering a variety of beverages under its brand names. With continued positive performance and significant institutional backing, the company’s outlook appears robust as it navigates the competitive coffee market.
