Have Dutch Bros Insiders Been Selling Stock?

Some Dutch Bros Inc. (NYSE:BROS) shareholders may be a little concerned to see that the Co-Founder & Executive Chairman of the Board, Travis Boersma, recently sold a substantial US$20m worth of stock at a price of US$44.03 per share. However, that sale only accounted for 3.4% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Dutch Bros

Notably, that recent sale by Co-Founder & Executive Chairman of the Board Travis Boersma was not the only time they sold Dutch Bros shares this year. Earlier in the year, they fetched US$64.10 per share in a -US$32m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$43.99. So it may not tell us anything about how insiders feel about the current share price.

Travis Boersma sold a total of 1.66m shares over the year at an average price of US$54.70. 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!

Check out our latest analysis for Dutch Bros

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Dutch Bros Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Dutch Bros insiders own 4.0% of the company, currently worth about US$328m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Dutch Bros Tell Us?

The stark truth for Dutch Bros is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Dutch Bros makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Dutch Bros you should be aware of.

Of course Dutch Bros may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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