First Watch Restaurant Group (NASDAQ:FWRG) Coverage Initiated at DA Davidson

Key Points

• DA Davidson initiated coverage on First Watch Restaurant Group (FWRG) with a "buy" rating, while the analyst consensus remains a Moderate Buy and the average price target is $20.08 despite recent target cuts to the $17–$21 range.
• First Watch beat quarterly EPS expectations ($0.24 vs. $0.08) and reported revenue up 20.2% year-over-year to $316.35 million, triggering an ~8.4% intraday jump as the stock opened near $12.97.
• Institutional ownership is very high (~96%), with Vanguard and other funds boosting positions, while insiders hold about 6% and a director sold 6,165 shares in January.

DA Davidson started coverage on shares of First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) in a report issued on Friday,Benzinga reports. The brokerage set a "buy" rating on the stock.

A number of other research firms have also recently commented on FWRG. Stephens lowered their price target on First Watch Restaurant Group from $24.00 to $21.00 and set an "overweight" rating on the stock in a report on Wednesday, February 25th. Citigroup lowered their target price on shares of First Watch Restaurant Group from $26.00 to $21.00 and set a "buy" rating on the stock in a report on Wednesday, February 25th. Barclays cut their target price on shares of First Watch Restaurant Group from $19.00 to $17.00 and set an "overweight" rating for the company in a research note on Wednesday, February 25th. Guggenheim decreased their price target on shares of First Watch Restaurant Group from $23.00 to $21.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Finally, Piper Sandler reissued an "overweight" rating and set a $19.00 price objective on shares of First Watch Restaurant Group in a report on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $20.08.

First Watch Restaurant Group Stock Up 8.4%

FWRG opened at $12.97 on Friday. The stock has a market cap of $792.99 million, a price-to-earnings ratio of 41.84, a price-to-earnings-growth ratio of 2.41 and a beta of 0.92. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.25 and a current ratio of 0.29. The firm's fifty day moving average is $15.56 and its 200 day moving average is $16.57. First Watch Restaurant Group has a fifty-two week low of $11.88 and a fifty-two week high of $20.55.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last posted its quarterly earnings results on Tuesday, February 24th. The company reported $0.24 EPS for the quarter, beating analysts' consensus estimates of $0.08 by $0.16. The business had revenue of $316.35 million for the quarter, compared to analysts' expectations of $317.49 million. First Watch Restaurant Group had a return on equity of 3.20% and a net margin of 1.59%.The business's quarterly revenue was up 20.2% on a year-over-year basis. During the same period last year, the firm earned $0.01 earnings per share. On average, sell-side analysts forecast that First Watch Restaurant Group will post 0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at First Watch Restaurant Group

In other news, Director William A. Kussell sold 6,165 shares of the company's stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $17.00, for a total transaction of $104,805.00. Following the sale, the director directly owned 26,402 shares in the company, valued at approximately $448,834. This represents a 18.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On First Watch Restaurant Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in shares of First Watch Restaurant Group by 15.0% in the 4th quarter. Vanguard Group Inc. now owns 3,320,929 shares of the company's stock worth $50,080,000 after purchasing an additional 432,634 shares during the period. Dimensional Fund Advisors LP lifted its position in First Watch Restaurant Group by 5.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,576,182 shares of the company's stock worth $38,849,000 after buying an additional 133,402 shares during the last quarter. The Manufacturers Life Insurance Company lifted its position in First Watch Restaurant Group by 51.7% in the second quarter. The Manufacturers Life Insurance Company now owns 2,335,883 shares of the company's stock worth $37,468,000 after buying an additional 796,191 shares during the last quarter. Lazard Asset Management LLC boosted its stake in First Watch Restaurant Group by 13.4% during the second quarter. Lazard Asset Management LLC now owns 2,281,137 shares of the company's stock worth $36,589,000 after buying an additional 269,726 shares during the period. Finally, JPMorgan Chase & Co. increased its position in First Watch Restaurant Group by 1.8% during the second quarter. JPMorgan Chase & Co. now owns 2,213,754 shares of the company's stock valued at $35,509,000 after acquiring an additional 39,648 shares during the last quarter. 96.11% of the stock is currently owned by hedge funds and other institutional investors.

First Watch Restaurant Group Company Profile

First Watch Restaurant Group, Inc NASDAQ: FWRG operates a specialty daytime dining concept focused on breakfast, brunch and lunch. The company's casual, full-service cafés emphasize fresh ingredients, made-to-order entrées and a seasonally driven menu that ranges from omelets and Benedicts to salads, skillets and afternoon sandwiches. First Watch positions itself as a daytime-only destination, with most locations opening early morning and closing by mid-afternoon.

Founded in 1983 by Ken Pendery and John Sullivan in Pacific Grove, California, First Watch began as a single café and gradually expanded through company-owned and select franchised locations.

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