Dutch Bros Inc. (NYSE:BROS) has garnered an average recommendation of “Buy” from the twenty-two research firms currently covering the company. According to Marketbeat.com, three analysts have assigned a hold rating, while sixteen have indicated a buy recommendation, and three have given a strong buy rating. The average one-year target price among these brokerages now stands at approximately $77.39.
A series of recent reports from various research analysts provide insights into the stock’s performance and future expectations. Mizuho recently set a target price of $70.00 per share. In a report issued on October 16, Wells Fargo & Company revised their target price from $80.00 to $70.00 while maintaining an “overweight” rating. Similarly, the Goldman Sachs Group lowered its price target from $81.00 to $72.00 and assigned a “neutral” rating in a report dated September 30. In contrast, Bank of America raised its target to $84.00 with an “overweight” rating on August 7. Additionally, CICC Research initiated coverage with an “outperform” rating and a target price of $80.00 on June 30.
Quarterly Earnings Exceed Expectations
Dutch Bros last reported its quarterly earnings on August 6, revealing earnings per share (EPS) of $0.26. This figure surpassed analysts’ consensus estimates of $0.18 by $0.08. The company also achieved a net margin of 3.94% and a return on equity of 8.86%. Total revenue for the quarter reached $415.81 million, exceeding the consensus estimate of $403.24 million. Notably, this represents a 28% increase in revenue compared to the same quarter the previous year.
Looking ahead, sell-side analysts predict that Dutch Bros will post an EPS of $0.57 for the current fiscal year.
Insider Trading and Hedge Fund Activity
Recent insider transactions have attracted attention. Major shareholder Dm Individual Aggregator, LLC sold 482,750 shares on August 22 at an average price of $65.17, totaling approximately $31.46 million. Following this transaction, the insider retained 1,279,144 shares valued at about $83.36 million, representing a decrease of 27.40% in ownership.
Chairman Travis Boersma also sold 787,681 shares on August 25 at an average price of $68.94, with a total transaction value of around $54.30 million. After this sale, Boersma directly owned 975,031 shares valued at approximately $67.22 million, reflecting a 44.69% decrease in his position.
In the past three months, insiders have sold a total of 3,161,101 shares worth $207.63 million. Currently, corporate insiders hold 42.40% of the company’s stock.
Several hedge funds have recently adjusted their stakes in Dutch Bros. For example, 1832 Asset Management L.P. increased its stake by 29.9% during the first quarter, now owning 3,420,200 shares valued at approximately $211.16 million. Ninety One UK Ltd. entered a new position valued at around $135.34 million in the third quarter. Other notable changes include Marshall Wace LLP increasing its stake by 139.2% and Invesco Ltd. growing its position by 70.9% in the second quarter.
As of now, hedge funds and institutional investors own approximately 85.54% of Dutch Bros’ stock, indicating strong institutional confidence in the company’s prospects.
Dutch Bros Inc. operates and franchises drive-thru coffee shops across the United States. The company offers products under various brands, including Dutch Bros Coffee and Blue Rebel. The firm continues to attract interest from investors as it expands its market presence.
