Travis Boersma, the Executive Chairman of Dutch Bros Inc. (NYSE:BROS), recently sold a significant portion of his holdings in the company. According to an SEC filing, Boersma sold a total of 80,720 shares of Class A common stock on October 28. The transactions were executed through two separate entities: DM Trust Aggregator, LLC and DM Individual Aggregator, LLC, under previously established Rule 10b5-1 trading plans.
The shares were sold at weighted average prices of $36.0299 and $36.0288, respectively, amounting to a combined total of approximately $2.9 million. Following these sales, Boersma retains ownership of 223,557 shares through DM Trust Aggregator, LLC and 125,671 shares through DM Individual Aggregator, LLC.
These automated transactions were part of a strategy set in motion on August 15, 2023, and were conducted without direct involvement from Boersma, as noted in the footnotes of the filing.
In other recent news, Dutch Bros Inc. has been the subject of several analyst adjustments. Piper Sandler downgraded Dutch Bros from Overweight to Neutral and lowered the price target to $36.00, citing concerns about the broader restaurant industry's downturn in traffic and the introduction of energy drinks by a major coffee chain. However, UBS upgraded the company from Neutral to Buy, setting a new price target of $39.00, based on the company's potential for growth and attractive risk/reward ratio.
Guggenheim also upgraded Dutch Bros to Buy, maintaining a price target of $36.00, following robust Q2 2024 financial results. The company reported a 30% rise in revenue to $325 million and a 34% increase in adjusted EBITDA to $65 million. These figures led Dutch Bros to revise its full-year revenue and adjusted EBITDA guidance upwards.
Despite a reduction in target price by TD Cowen, the analyst maintained a Buy rating, highlighting the company's mobile order rollout and attractive valuation. These are recent developments that investors should consider when looking at the company's future performance.
InvestingPro Insights
Dutch Bros Inc. (NYSE:BROS) has been experiencing significant growth, as evidenced by the company's recent financial performance. According to InvestingPro data, the company's revenue grew by 31.97% in the last twelve months as of Q2 2024, reaching $1.12 billion. This robust growth aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the recent stock sale by Executive Chairman Travis Boersma, the company's financial health appears strong. Dutch Bros operates with a moderate level of debt, and its liquid assets exceed short-term obligations, as highlighted by InvestingPro Tips. These factors suggest that the company is well-positioned to manage its financial commitments and pursue growth opportunities.
Investors should note that Dutch Bros is trading at high valuation multiples, including a P/E ratio of 116.24 and a Price/Book ratio of 12.21. This premium valuation reflects market expectations for continued growth and profitability. An InvestingPro Tip points out that net income is expected to grow this year, which could justify the current valuation levels.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for Dutch Bros, providing a comprehensive view of the company's financial position and market performance.
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