Why Dutch Bros Fell as Much as 13.1% This Week
Shares of Dutch Bros (NYSE: BROS) fell as much as 13.1% this week, according to data from S&P Global Market Intelligence. The coffee and drink chain had no official news releases; however, it did report strong earnings last week that sent shares higher. It is possible that traders sold the stock to lock in these gains. Plus, investors may have been nervous with some insiders selling their shares. As of 1:20 p.m. ET on Friday, shares of Dutch Bros are down 12.7% this week.
On Aug. 10, Dutch Bros reported earnings for the second quarter. Its financials looked strong, with revenue up 44% year over year to $186.4 million and trailing-12-month systemwide sales hitting $1 billion. The coffee chain also opened 31 new locations as it further expands across the United States.
Investors cheered this news, sending shares of Dutch Bros higher last week. With 20% of its float sold short according to Yahoo Finance, it is also possible a short squeeze drove some of the gains in the days following the report. Heading into this week, it is plausible we had a reversal of what happened the week before, with people selling their gains and short-sellers re-entering their positions.
Source Fool.com
