First Watch Restaurant Group (NASDAQ:FWRG) Rating Lowered to Strong Sell at Zacks Research

Key Points

• First Watch Restaurant Group has been downgraded from a "hold" rating to a "strong sell" by Zacks Research, indicating negative sentiment from analysts.
• Bank of America and other analysts have adjusted their price targets for the stock, with estimates now ranging between $21.00 and $24.00, reflecting a divided outlook among investors.
• The company reported a miss in earnings with $0.03 EPS, below the consensus estimate of $0.07, despite a 19.1% year-over-year increase in revenue.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Other equities analysts also recently issued research reports about the stock. Bank of America reduced their price objective on shares of First Watch Restaurant Group from $23.00 to $21.00 and set a "buy" rating for the company in a research note on Friday, July 18th. Benchmark upped their price target on First Watch Restaurant Group from $22.00 to $24.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. TD Cowen upped their price target on First Watch Restaurant Group from $19.00 to $21.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Raymond James Financial upped their price target on First Watch Restaurant Group from $21.00 to $22.00 and gave the stock a "strong-buy" rating in a research report on Thursday, July 17th. Finally, Barclays upped their target price on First Watch Restaurant Group from $20.00 to $21.00 and gave the company an "overweight" rating in a research report on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have assigned a Sell rating to the company. According to MarketBeat, First Watch Restaurant Group has an average rating of "Moderate Buy" and a consensus target price of $21.09.

First Watch Restaurant Group Trading Up 0.5%

Shares of NASDAQ FWRG opened at $15.92 on Monday. The business's 50 day moving average is $17.34 and its two-hundred day moving average is $17.07. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.27 and a quick ratio of 0.23. First Watch Restaurant Group has a 1-year low of $12.90 and a 1-year high of $22.71. The stock has a market capitalization of $971.44 million, a P/E ratio of 265.38, a PEG ratio of 5.50 and a beta of 0.87.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.04). The business had revenue of $307.89 million for the quarter, compared to analysts' expectations of $304.94 million. First Watch Restaurant Group had a net margin of 0.37% and a return on equity of 0.69%. The firm's quarterly revenue was up 19.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.14 EPS. First Watch Restaurant Group has set its FY 2025 guidance at EPS. As a group, research analysts expect that First Watch Restaurant Group will post 0.32 EPS for the current year.

Insiders Place Their Bets

In other First Watch Restaurant Group news, major shareholder International L.P. Advent sold 5,000,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $17.70, for a total value of $88,500,000.00. Following the transaction, the insider directly owned 9,689,784 shares of the company's stock, valued at $171,509,176.80. This trade represents a 34.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 6.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On First Watch Restaurant Group

Institutional investors have recently modified their holdings of the business. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of First Watch Restaurant Group in the first quarter worth $259,000. SG Americas Securities LLC raised its holdings in shares of First Watch Restaurant Group by 272.0% in the first quarter. SG Americas Securities LLC now owns 56,466 shares of the company's stock valued at $940,000 after buying an additional 41,289 shares during the last quarter. Nuveen LLC purchased a new stake in shares of First Watch Restaurant Group in the first quarter valued at about $1,085,000. Bank of New York Mellon Corp raised its holdings in shares of First Watch Restaurant Group by 203.6% in the first quarter. Bank of New York Mellon Corp now owns 238,661 shares of the company's stock valued at $3,974,000 after buying an additional 160,040 shares during the last quarter. Finally, Stephens Investment Management Group LLC increased its stake in shares of First Watch Restaurant Group by 2.2% during the first quarter. Stephens Investment Management Group LLC now owns 708,663 shares of the company's stock worth $11,799,000 after acquiring an additional 15,304 shares during the period. Institutional investors and hedge funds own 96.11% of the company's stock.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc, through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc and changed its name to First Watch Restaurant Group, Inc in December 2019. First Watch Restaurant Group, Inc was founded in 1983 and is based in Bradenton, Florida.

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