DM Individual Aggregator, LLC, a major shareholder of Dutch Bros Inc. (NYSE:BROS), recently sold a significant portion of its holdings in the company. The transaction, which took place on November 1, involved the sale of 115,854 shares of Class A Common Stock. The shares were sold at a weighted average price of $33.38, resulting in a total transaction value of approximately $3.87 million.
Following this sale, the shareholder now holds 9,817 shares in Dutch Bros. The transaction was executed automatically as part of a Rule 10b5-1 trading plan, which was adopted on August 15, 2023. The shares were sold in multiple transactions, with prices ranging from $32.91 to $33.72.
In other recent news, Dutch Bros Inc. has been the subject of several analyst adjustments. Piper Sandler downgraded Dutch Bros shares from Overweight to Neutral, setting a price target of $36.00. This follows a period of performance that saw Dutch Bros shares increase by approximately 9.0%. Despite this, the firm maintains its investment thesis for Dutch Bros, focusing on the potential for the company's MOAP (Mother of All Promos) to boost sales and average unit volume leading into 2025.
On the other hand, UBS upgraded Dutch Bros stock from Neutral to Buy, setting a new price target at $39.00. The firm sees Dutch Bros' potential to open 4,000 stores as achievable and expects initiatives like the rollout of mobile ordering to drive increased traffic and stronger sales into 2025.
Guggenheim also upgraded Dutch Bros' stock from Neutral to Buy, maintaining a price target of $36.00, citing the company's recent earnings and potential for significant growth. However, TD Cowen maintained a Buy rating but lowered the price target from $50.00 to $47.00.
In terms of financial performance, Dutch Bros reported a 30% rise in revenue to $325 million and a 34% increase in adjusted EBITDA to $65 million in Q2 2024, leading to an upward revision of its full-year revenue and adjusted EBITDA guidance. In addition, the company plans to open between 150 to 165 new shops in 2024. These are the recent developments that may influence future company performance.
InvestingPro Insights
While DM Individual Aggregator, LLC has significantly reduced its stake in Dutch Bros Inc. (NYSE:BROS), the company's financial metrics and market performance offer a mixed picture for investors. According to InvestingPro data, Dutch Bros boasts a market capitalization of $5.57 billion and has demonstrated strong revenue growth, with a 31.97% increase in the last twelve months as of Q2 2024. This growth aligns with one of the InvestingPro Tips, which indicates that analysts anticipate sales growth in the current year.
Despite the recent share sale by a major shareholder, Dutch Bros maintains a positive outlook. InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This optimism is reflected in the stock's performance, with a 26.09% price total return over the past year.
However, investors should note that Dutch Bros is trading at high valuation multiples. The company's P/E ratio stands at 116.24, and its Price / Book ratio is 11.48, indicating a premium valuation. This aligns with another InvestingPro Tip, which points out that the stock is trading at a high earnings multiple.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Dutch Bros, providing a deeper understanding of the company's financial health and market position.
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