Take off with Dutch Bros Inc. (BROS): Get ready for trading

Dutch Bros Inc. (NYSE: BROS) stock fell -1.21% on Friday to $34.19 against a previous-day closing price of $34.61. With 1.29 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.02 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $34.88 whereas the lowest price it dropped to was $33.43. The 52-week range on BROS shows that it touched its highest point at $81.40 and its lowest point at $20.05 during that stretch. It currently has a 1-year price target of $49.33.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BROS was down-trending over the past week, with a drop of -3.23%, but this was down by -8.95% over a month. Three-month performance dropped to -5.76% while six-month performance fell -39.91%. The stock lost -32.80% in the past year, while it has lost -32.84% so far this year. A look at the trailing 12-month EPS for BROS yields -0.12 with Next year EPS estimates of 0.43. For the next quarter, that number is 0.09. This implies an EPS growth rate of -325.10% for this year and 96.77% for next year.

Float and Shares Shorts:

At present, 163.71 million BROS shares are outstanding with a float of 33.88 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.54 million, which was 14.07% higher than short shares on Jun 14, 2022. In addition to Mr. Travis Boersma as the firm’s Co-Founder & Exec. Chairman, Mr. Jonathan J. Ricci serves as its CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 60.80% of BROS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 27.20% of BROS, in contrast to 13.01% held by mutual funds. Shares owned by individuals account for 11.53%. As the largest shareholder in BROS with 6.99% of the stake, The Vanguard Group, Inc. holds 2,764,874 shares worth 2,764,874. A second-largest stockholder of BROS, Fidelity Management & Research Co, holds 1,758,995 shares, controlling over 4.45% of the firm’s shares. Franklin Advisers, Inc. is the third largest shareholder in BROS, holding 1,494,656 shares or 3.78% stake. With a 2.50% stake in BROS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 988,216 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.15% of BROS stock, is the second-largest Mutual Fund holder. It holds 850,278 shares valued at 31.04 million. FTIF SICAV – US Opportunities Fun holds 1.71% of the stake in BROS, owning 677,319 shares worth 24.72 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BROS since 10 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BROS analysts setting a high price target of $64.00 and a low target of $37.00, the average target price over the next 12 months is $50.22. Based on these targets, BROS could surge 87.19% to reach the target high and rise by 8.22% to reach the target low. Reaching the average price target will result in a growth of 46.89% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BROS will report FY 2022 earnings on 02/28/2023. Analysts have provided yearly estimates in a range of $0.28 being high and -$0.05 being low. For BROS, this leads to a yearly average estimate of $0.13. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Dutch Bros Inc. surprised analysts by -$0.00 when it reported $0.05 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is $0.17 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.08.

Summary of Insider Activity:

Insiders traded BROS stock several times over the past three months with 0 Buys and 13 Sells. In these transactions, 0 shares were bought while 216,125 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 70 over the past year. The total number of shares bought during that period was 5,326,495 while 10,185,949 shares were sold.

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