Piper Sandler has recently reduced Dutch Bros Inc (BROS) stock to Neutral rating, as announced on August 19, 2024, according to Finviz. Earlier, on August 15, 2024, UBS had raised the stock from a Neutral to Buy, setting a price target of $39. Guggenheim also raised Buy rating. Additionally, TD Cowen reiterated Buy rating on August 8, 2024, with a target price of $47. TD Cowen analysts, in their report published on May 10, 2024, also raised Buy rating and set a price target of $33 for Dutch Bros Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Dutch Bros Inc (BROS) Stock Trading Recap
On Tuesday, Dutch Bros Inc (BROS) stock saw a modest uptick, ending the day at $32.16 which represents a slight increase of $0.13 or 0.41% from the prior close of $32.03. The stock opened at $32.02 and touched a low of $31.77 during the day, reaching a high of $32.78. The volume of shares traded was 1.95 million falling short of the average volume of 3.40 million.
BROS Stock Performance and Moving Averages
In recent trading, Dutch Bros Inc (BROS) stock price has shown some volatility, fluctuating -5.30% over the last five trades and 3.74% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 1.64%, and it has plunged by -23.12% in the previous three months. Currently, BROS is trading at -2.93%, -4.37%, and -2.33% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, BROS, a Consumer Cyclical sector stock, is trading -26.05% below its 52-week high but remains 40.74% above its 52-week low. The Average True Range (ATR) (14 days) of 1.08 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Dutch Bros Inc’s Profitability and Valuation Ratios
Dutch Bros Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 7.57% and a profit margin of 1.95%, with a gross margin of 1.64%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Dutch Bros Inc’s market capitalization stands at $3.66 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 127.32, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 67.56. Additionally, the Price-to-Sales Ratio is 3.27, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 7.19, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 3.33% of Dutch Bros Inc (BROS)’s shares, while financial institutions hold 81.68%.
Notable insider trades include Boersma Travis, Executive Chairman of Board at Dutch Bros Inc (BROS), who sold 376696 shares on Sep 13 ’24, at $34.12 each, totaling $12.85 million. On Sep 16 ’24, Boersma Travis, Executive Chairman of Board, sold 18223 shares for $34.13 each, amounting to $0.62 million. Additionally, on Sep 13 ’24, DM Trust Aggregator, LLC sold 225523 shares at $34.1 each, generating $7.69 million.
