As Dutch Bros Inc. (NYSE:BROS) gains 9.3%, insiders who bought last year may be wishing they had bet higher




  • In Business
  • 2022-08-12 11:24:56Z
  • By Simply Wall St.
 

Last week, Dutch Bros Inc. (NYSE:BROS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 9.3% last week, resulting in a US$211m increase in the company's market worth. As a result, their original purchase of US$149k worth of stock is now worth US$262k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Dutch Bros

The Last 12 Months Of Insider Transactions At Dutch Bros

The Independent Director Stephen Gillett made the biggest insider purchase in the last 12 months. That single transaction was for US$149k worth of shares at a price of US$26.58 each. We do like to see buying, but this purchase was made at well below the current price of US$46.29. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Dutch Bros is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Dutch Bros

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Dutch Bros insiders own 3.3% of the company, currently worth about US$238m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Dutch Bros Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Dutch Bros insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Dutch Bros and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Bullish insiders at Alkane Resources Limited (ASX:ALK) loaded up on AU$12m of stock earlier this year
Bullish insiders at Alkane Resources Limited (ASX:ALK) loaded up on AU$12m of stock earlier this year

Quite a few insiders have dramatically grown their holdings in Alkane Resources Limited ( ASX:ALK ) over the past 12...

Futura Medical plc (LON:FUM) is favoured by institutional owners who hold 63% of the company
Futura Medical plc (LON:FUM) is favoured by institutional owners who hold 63% of the company

A look at the shareholders of Futura Medical plc ( LON:FUM ) can tell us which group is most powerful. We can see that...

Kimball International, Inc. (NASDAQ:KBAL) is a favorite amongst institutional investors who own 66%
Kimball International, Inc. (NASDAQ:KBAL) is a favorite amongst institutional investors who own 66%

To get a sense of who is truly in control of Kimball International, Inc. ( NASDAQ:KBAL ), it is important to understand...

Institutions profited after De Grey Mining Limited
Institutions profited after De Grey Mining Limited's (ASX:DEG) market cap rose AU$162m last week butindividual investors profited the most

To get a sense of who is truly in control of De Grey Mining Limited ( ASX:DEG ), it is important to understand the...

Trade Alert: The Independent Non-Executive Chairman Of Sirius Real Estate Limited (LON:SRE), Daniel Kitchen, Has Just Spent €50k Buying 52% More Shares
Trade Alert: The Independent Non-Executive Chairman Of Sirius Real Estate Limited (LON:SRE), Daniel Kitchen, Has Just Spent €50k Buying 52% More Shares

Even if it's not a huge purchase, we think it was good to see that Daniel Kitchen, the Independent Non-Executive...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business