Dutch Bros (NYSE:BROS) Sets New 1-Year Low – Should You Sell?

Dutch Bros Inc. (NYSE:BROS)’s stock price hit a new 52-week low during trading on Monday. The stock traded as low as $37.33 and last traded at $37.2380, with a volume of 164,460 shares changing hands. The stock had previously closed at $38.05.

Key Dutch Bros News

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

• Positive Sentiment: Relative market outperformance: Dutch Bros closed at $37.98, up 1.88% from the previous session, even as the overall market weakened. The report suggests the move reflects relative strength, although it does not identify a major new company-specific catalyst. Dutch Bros Gains As Market Dips: What You Should Know
• Positive Sentiment: Continued store expansion: Dutch Bros is nearing the opening of its first location in southwest Fort Wayne and is planning its first Oxford, Mississippi, location. The new stores support the company’s growth strategy and could expand its customer base and revenue over time. Dutch Bros Coffee Nears Opening in Southwest Fort Wayne Dutch Bros Opens First Oxford Location
• Positive Sentiment: Potential acquisition-driven expansion: Dutch Bros is considering as many as 65 Salad and Go drive-thru sites across four states, which could accelerate its footprint growth if completed. Can Dutch Bros Turn 65 Salad and Go Sites Into a Growth Catalyst?
• Negative Sentiment: Deal uncertainty and recent volatility: Dutch Bros has not increased its offer for the Salad and Go locations, leaving the transaction uncertain. The stock also suffered a larger decline than the broader market in the prior session, reinforcing concerns about volatility and its premium valuation. Salad and Go Growth Catalyst Analysis Dutch Bros Suffers a Larger Drop Than the General Market

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on BROS shares. JPMorgan Chase & Co. cut their target price on shares of Dutch Bros from $75.00 to $60.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. Morgan Stanley lifted their price target on shares of Dutch Bros from $87.00 to $88.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 15th. Freedom Capital raised shares of Dutch Bros to a “strong-buy” rating in a report on Wednesday, July 1st. Citigroup restated a “buy” rating on shares of Dutch Bros in a research report on Thursday, August 6th. Finally, DA Davidson lowered their price objective on shares of Dutch Bros from $85.00 to $60.00 and set a “buy” rating for the company in a research report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $71.88.

Dutch Bros Price Performance

The company has a current ratio of 1.35, a quick ratio of 1.19 and a debt-to-equity ratio of 0.20. The company has a fifty day moving average price of $45.03 and a two-hundred day moving average price of $54.38. The firm has a market cap of $6.64 billion, a P/E ratio of 53.26, a PEG ratio of 1.32 and a beta of 2.31.

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

Insiders Place Their Bets

In related news, Director Todd Penegor purchased 2,000 shares of Dutch Bros stock in a transaction dated Thursday, August 13th. The stock was bought at an average price of $51.56 per share, for a total transaction of $103,120.00. Following the completion of the acquisition, the director directly owned 7,358 shares of the company’s stock, valued at $379,378.48. This represents a 37.33% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 38.90% of the company’s stock.

Institutional Investors Weigh In On Dutch Bros

Large investors have recently made changes to their positions in the stock. Ancora Advisors LLC acquired a new position in shares of Dutch Bros during the 2nd quarter worth about $29,000. Brown Lisle Cummings Inc. grew its holdings in shares of Dutch Bros by 63.8% in the 1st quarter. Brown Lisle Cummings Inc. now owns 819 shares of the company’s stock valued at $41,000 after acquiring an additional 319 shares in the last quarter. Glen Eagle Advisors LLC bought a new position in shares of Dutch Bros in the 4th quarter valued at about $74,000. Archer Investment Corp bought a new position in shares of Dutch Bros in the 2nd quarter valued at about $101,000. Finally, GK Wealth Management LLC acquired a new stake in shares of Dutch Bros in the third quarter valued at about $56,000. Institutional investors own 85.54% of the company’s stock.

About Dutch Bros

Dutch Bros Inc is a drive-thru beverage company that operates the Dutch Bros coffeehouse brand. The company serves a broad menu of handcrafted beverages, including specialty coffees, cold brews, teas, energy drinks, lemonades, smoothies and flavored sodas, along with a selection of snacks and other food items.

Dutch Bros was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. From its original pushcart operation, the company developed a drive-thru-focused model built around convenience, customized drinks and customer service.