Travis Boersma, the Executive Chairman of Dutch Bros Inc. (NYSE:BROS), has sold a significant portion of his holdings in the company, according to a recent SEC filing. Boersma sold a total of 285,462 shares in two separate transactions on November 1st, amounting to an aggregate value of approximately $9.53 million.
The first transaction involved the sale of 169,608 shares at a weighted average price of $33.37 per share, totaling around $5.66 million. This sale was conducted automatically under a pre-arranged trading plan by DM Trust Aggregator, LLC. Following this transaction, Boersma's indirect ownership, through the trust, stands at 53,949 shares.
In the second transaction, Boersma sold 115,854 shares at a weighted average price of $33.38 per share, bringing in roughly $3.87 million. This sale was also executed under a trading plan by DM Individual Aggregator, LLC, leaving him with 9,817 shares under this entity.
Both transactions were executed as part of Rule 10b5-1 trading plans, which were established on August 15, 2023. These plans allow major shareholders to sell a predetermined number of shares at set intervals, providing a structured way to reduce holdings and manage insider trading concerns.
In other recent news, Dutch Bros Inc. has seen a flurry of activity from analysts. Piper Sandler downgraded Dutch Bros shares from Overweight to Neutral and lowered its price target to $36.00, citing concerns about the weakening consumer backdrop. In contrast, UBS upgraded the company's stock from Neutral to Buy with a new price target of $39.00, highlighting potential catalysts for growth. Guggenheim also upgraded Dutch Bros' stock to Buy, maintaining a price target of $36.00, while TD Cowen held its Buy rating but reduced the price target from $50.00 to $47.00.
These adjustments followed Dutch Bros' robust Q2 2024 financial results, which reported a 30% surge in revenue to $325 million and a 34% increase in adjusted EBITDA to $65 million. The company has since revised its full-year revenue and adjusted EBITDA guidance upwards. Dutch Bros also opened its 900th shop in Frisco, Texas and plans to open between 150 to 165 new shops in 2024.
The company is making strides in its mobile ordering implementation, aiming to cover over 50% of its stores by the end of 2024. Despite potential margin pressures due to increased promotional activities, Dutch Bros remains optimistic about its future prospects. These are recent developments that may influence future company performance.
InvestingPro Insights
The recent insider selling by Dutch Bros Inc.'s Executive Chairman Travis Boersma comes against a backdrop of strong financial performance for the company. According to InvestingPro data, Dutch Bros has demonstrated impressive revenue growth, with a 31.97% increase over the last twelve months as of Q2 2024, reaching $1.12 billion. This growth trajectory aligns with one of the InvestingPro Tips, which indicates that analysts anticipate continued sales growth in the current year.
Despite the significant insider sale, Dutch Bros maintains a robust market capitalization of $5.57 billion, reflecting investor confidence in the company's future prospects. The company's strong financial position is further underscored by another InvestingPro Tip, which notes that Dutch Bros' liquid assets exceed its short-term obligations, suggesting a healthy balance sheet.
However, investors should be aware that Dutch Bros is trading at high valuation multiples. The company's P/E ratio stands at 116.24, which is considerably above market averages. This high valuation is consistent with an InvestingPro Tip highlighting that Dutch Bros is trading at high earnings, EBIT, EBITDA, and revenue multiples.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Dutch Bros, providing a comprehensive view of the company's financial health and market position.
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