Dutch Bros Inc (BROS) Shares Down Despite Recent Market Volatility

Dutch Bros Inc (NYSE: BROS) has experienced a decline in its stock price by -3.95 compared to its previous closing price of 32.94. However, the company has seen a fall of -5.66% in its stock price over the last five trading days. InvestorPlace reported 2024-04-02 that Reduced interest rates make it easier for firms to buy other companies. That’s because acquiring firms can borrow the money needed to finance mergers and acquisitions (M&A) deals much more cheaply when rates are low.

Is It Worth Investing in Dutch Bros Inc (NYSE: BROS) Right Now?

The price-to-earnings ratio for Dutch Bros Inc (NYSE: BROS) is above average at 1007.64x. The 36-month beta value for BROS is also noteworthy at 2.42. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”

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The public float for BROS is 77.64M, and at present, short sellers hold a 9.02% of that float. The average trading volume of BROS on April 03, 2024 was 2.01M shares.

BROS’s Market Performance

BROS stock saw an increase of -5.66% in the past week, with a monthly gain of 6.64% and a quarterly increase of -0.09%. The volatility ratio for the week is 3.01%, and the volatility levels for the last 30 days are 3.60% for Dutch Bros Inc (BROS). The simple moving average for the last 20 days is -3.49% for BROS’s stock, with a simple moving average of 11.37% for the last 200 days.

Analysts’ Opinion of BROS

Many brokerage firms have already submitted their reports for BROS stocks, with Piper Sandler repeating the rating for BROS by listing it as a “Overweight.” The predicted price for BROS in the upcoming period, according to Piper Sandler is $37 based on the research report published on March 04, 2024 of the current year 2024.

Stifel, on the other hand, stated in their research note that they expect to see BROS reach a price target of $40, previously predicting the price at $35. The rating they have provided for BROS stocks is “Buy” according to the report published on February 22nd, 2024.

Stifel gave a rating of “Buy” to BROS, setting the target price at $35 in the report published on January 16th of the current year.

BROS Trading at 6.80% from the 50-Day Moving Average

After a stumble in the market that brought BROS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.52% of loss for the given period.

Volatility was left at 3.60%, however, over the last 30 days, the volatility rate increased by 3.01%, as shares surge +3.67% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +12.12% upper at present.

During the last 5 trading sessions, BROS fell by -5.66%, which changed the moving average for the period of 200-days by +9.56% in comparison to the 20-day moving average, which settled at $32.84. In addition, Dutch Bros Inc saw -0.09% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at BROS starting from TSG7 A Management LLC, who sale 8,000,000 shares at the price of $33.88 back on Mar 26 ’24. After this action, TSG7 A Management LLC now owns 0 shares of Dutch Bros Inc, valued at $271,000,000 using the latest closing price.

Boersma Travis, the Executive Chairman of Board of Dutch Bros Inc, sale 98,017 shares at $36.04 during a trade that took place back on Mar 21 ’24, which means that Boersma Travis is holding 672,439 shares at $3,532,523 based on the most recent closing price.

Stock Fundamentals for BROS

Current profitability levels for the company are sitting at:

  • 0.05 for the present operating margin
  • 0.26 for the gross margin

The net margin for Dutch Bros Inc stands at 0.0. The total capital return value is set at 0.03. Equity return is now at value 0.70, with 0.12 for asset returns.

Based on Dutch Bros Inc (BROS), the company’s capital structure generated 0.24 points at debt to capital in total, while cash flow to debt ratio is standing at 1.19. The debt to equity ratio resting at 0.32. The interest coverage ratio of the stock is 1.45.

Currently, EBITDA for the company is 94.05 million with net debt to EBITDA at 7.97. When we switch over and look at the enterprise to sales, we see a ratio of 6.63. The receivables turnover for the company is 105.85for trailing twelve months and the total asset turnover is 0.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.49.

Conclusion

In summary, Dutch Bros Inc (BROS) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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