GRANTS PASS, Oregon—Travis Boersma, Executive Chairman of the Board at Dutch Bros Inc. (NYSE:BROS), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Boersma disposed of 38,339 shares of Class A Common Stock on November 4, 2024. The transactions were executed at prices ranging from $32.83 to $34.17 per share, resulting in a total sale value of approximately $1.28 million.
The shares were sold automatically under a Rule 10b5-1 trading plan, which was adopted by DM Trust Aggregator, LLC on August 15, 2023. Following these sales, Boersma retains ownership of 15,610 shares indirectly through DM Trust Aggregator, LLC.
In other recent news, Dutch Bros Inc. has been the subject of multiple analyst reviews. Piper Sandler downgraded Dutch Bros' shares from Overweight to Neutral, citing concerns about the restaurant industry's outlook and potential impacts of new competitive developments. However, both UBS and Guggenheim upgraded the coffee chain's stock from Neutral to Buy, highlighting the company's robust growth potential and attractive valuation.
Dutch Bros also reported a significant increase in its second quarter 2024 financial results, with a 30% rise in revenue to $325 million and a 34% increase in adjusted EBITDA to $65 million. These strong results led to an upward revision of the company's full-year revenue and adjusted EBITDA guidance.
TD Cowen, while maintaining a Buy rating, lowered the price target from $50.00 to $47.00. Despite potential margin pressures due to increased promotional activities, Dutch Bros remains optimistic about its future prospects and is making strides in implementing mobile ordering, aiming to cover over 50% of its stores by the end of 2024.
These are recent developments that may influence Dutch Bros' future performance. As always, investors are advised to consider various sources of information and analyst viewpoints when making investment decisions.
InvestingPro Insights
While Travis Boersma's recent stock sale might raise eyebrows, it's essential to view this transaction in the context of Dutch Bros Inc.'s overall financial health and market performance. According to InvestingPro data, Dutch Bros boasts a market capitalization of $5.57 billion, reflecting its significant presence in the coffee chain industry.
The company's revenue growth remains robust, with a 31.97% increase over the last twelve months as of Q2 2024, reaching $1.12 billion. This strong top-line performance aligns with an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
Despite the recent insider sale, Dutch Bros' financial metrics suggest a company in growth mode. The firm's EBITDA growth stands at an impressive 100.13% over the last twelve months, while its gross profit margin is a healthy 26.5%. These figures support another InvestingPro Tip, which notes that net income is expected to grow this year.
It's worth noting that Dutch Bros trades at relatively high multiples, with a P/E ratio of 116.24 and a Price / Book ratio of 11.48. This valuation suggests investor optimism about the company's future prospects, though it also implies high growth expectations.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Dutch Bros, providing a deeper understanding of the company's financial position and market outlook.
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