Dutch Bros executive chairman sells over $326,000 in company stock

In a recent transaction, Travis Boersma, the Executive Chairman of the Board of Dutch Bros Inc. (NYSE:BROS ), sold a significant amount of the company's stock. The transactions, which occurred automatically pursuant to a pre-arranged trading plan, involved the sale of shares held indirectly through different entities.


On September 12, 2024, Boersma sold 4,600 shares at a weighted average price of $34.0068, totaling approximately $156,431. These shares were sold through DM Trust Aggregator, LLC, and following the transaction, the entity still held 507,700 shares of Dutch Bros Inc.


In a concurrent sale, DM Individual Aggregator, LLC, another entity associated with Boersma, sold 5,010 shares at a nearly identical weighted average price of $34.0048, amounting to around $170,364. After this sale, the ownership stake was reduced to 317,167 shares.


The sales were executed within a range of prices from $34.0000 to $34.0150, with the specific number of shares sold at each price available upon request. Both transactions were carried out in accordance with Rule 10b5-1 trading plans, which had been previously adopted on August 15, 2023.


These transactions reflect a part of the stock trading activities by company insiders and are publicly disclosed for investors to stay informed about the financial moves of Dutch Bros Inc.'s key executives.



In other recent news, Dutch Bros Inc. has been the subject of several analyst adjustments following its robust financial results for the second quarter of 2024. The drive-thru coffee chain reported a 30% rise in revenue to $325 million and a 34% increase in adjusted EBITDA to $65 million. This prompted the company to revise its full-year revenue and adjusted EBITDA guidance upwards.


Piper Sandler downgraded Dutch Bros from Overweight to Neutral, citing concerns about the restaurant industry's outlook and the potential impact of new energy drinks introduced by a major coffee chain. UBS, however, upgraded the stock to Buy, highlighting the company's growth potential and the attractive risk/reward ratio. Similarly, Guggenheim raised the coffee chain's stock from Neutral to Buy, maintaining a price target of $36.00, based on the company's recent earnings and growth potential.


TD Cowen, while maintaining a Buy rating, lowered the price target from $50.00 to $47.00. The analyst noted that Dutch Bros is on track with its mobile order rollout, aiming to reach over 50% of its stores by the end of 2024. The company also celebrated the opening of their 900th shop in Frisco, Texas, and plans to open between 150 to 165 new shops in 2024.


These are recent developments that may influence future company performance. The company remains optimistic about its future prospects, with positive customer response to the Dutch Rewards program and strong shop margins expected to continue driving performance.
InvestingPro Insights


In light of the recent stock sales by Dutch Bros Inc.'s (NYSE:BROS) Executive Chairman Travis Boersma, investors might be interested in the company's financial health and market performance. According to InvestingPro data, Dutch Bros has a market capitalization of approximately $5.57 billion, with a high P/E ratio of 116.24, indicating that the stock is trading at a premium relative to its earnings.


InvestingPro Tips suggest that analysts are optimistic about Dutch Bros, expecting net income and sales growth in the current year. This could signal confidence in the company's ability to expand and generate profits despite the insider sales. Additionally, the company's liquid assets exceed its short-term obligations, which is a positive indicator of financial stability.


However, it's important to note that the stock's price movements have been quite volatile, and the company is trading at high valuation multiples across various metrics, including EBIT and EBITDA. Specifically, Dutch Bros is trading at an EBITDA valuation multiple that has shown a significant growth of over 100% in the last twelve months as of Q2 2024.


For investors looking to delve deeper into Dutch Bros' financials and market expectations, there are additional InvestingPro Tips available at https://www.investing.com/pro/BROS. These tips provide a comprehensive analysis that could help in making informed investment decisions.

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Source: Investing.com