First Watch Restaurant Group (NASDAQ:FWRG) Reaches New 52-Week Low - Here's What Happened

Key Points

• Shares of First Watch hit a new 52-week low, trading as low as $10.09 and last at $10.41 with 31,523 shares changing hands, while several brokers trimmed targets — yet the consensus remains a Moderate Buy with an average price target of $19.75.
• The company beat EPS estimates ($0.24 vs. $0.08) but revenue slightly missed expectations and profitability is thin (net margin 1.59%), while liquidity ratios are weak (current ratio 0.29, quick ratio 0.25), signaling operational and balance-sheet concerns despite 20.2% YoY revenue growth.
• Insiders have been net sellers (74,178 shares sold in the last 90 days, including recent sales on March 10), and institutional investors own the majority of the stock, which could magnify future price moves driven by large holders.

Shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $10.09 and last traded at $10.4070, with a volume of 31523 shares trading hands. The stock had previously closed at $10.31.

Wall Street Analyst Weigh In

Several brokerages have commented on FWRG. Stephens dropped their price target on shares of First Watch Restaurant Group from $24.00 to $21.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 25th. Weiss Ratings lowered shares of First Watch Restaurant Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday. Citigroup dropped 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. Finally, DA Davidson began coverage on shares of First Watch Restaurant Group in a report on Friday, March 6th. They set a "buy" rating and a $17.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, First Watch Restaurant Group currently has an average rating of "Moderate Buy" and a consensus price target of $19.75.

First Watch Restaurant Group Trading Up 1.0%

The company has a fifty day simple moving average of $14.33 and a 200-day simple moving average of $15.84. The company has a current ratio of 0.29, a quick ratio of 0.25 and a debt-to-equity ratio of 0.43. The stock has a market cap of $636.47 million, a price-to-earnings ratio of 33.58, a P/E/G ratio of 2.07 and a beta of 0.92.

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

Insider Transactions at First Watch Restaurant Group

In other First Watch Restaurant Group news, insider Jay Anthony Wolszczak sold 6,998 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $12.59, for a total value of $88,104.82. Following the transaction, the insider owned 232,091 shares in the company, valued at approximately $2,922,025.69. This represents a 2.93% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Matthew Eisenacher sold 6,070 shares of First Watch Restaurant Group stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $12.59, for a total transaction of $76,421.30. Following the sale, the insider directly owned 69,983 shares of the company's stock, valued at $881,085.97. This trade represents a 7.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 74,178 shares of company stock worth $958,411. 6.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On First Watch Restaurant Group

Several institutional investors and hedge funds have recently modified their holdings of FWRG. Vanguard Group Inc. raised its holdings in First Watch Restaurant Group by 15.0% during the fourth quarter. Vanguard Group Inc. now owns 3,320,929 shares of the company's stock valued at $50,080,000 after buying an additional 432,634 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of First Watch Restaurant Group by 5.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,576,182 shares of the company's stock worth $38,849,000 after acquiring an additional 133,402 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of First Watch Restaurant Group by 51.7% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,335,883 shares of the company's stock valued at $37,468,000 after acquiring an additional 796,191 shares during the last quarter. Lazard Asset Management LLC increased its holdings in shares of First Watch Restaurant Group by 13.4% during the 2nd quarter. Lazard Asset Management LLC now owns 2,281,137 shares of the company's stock valued at $36,589,000 after acquiring an additional 269,726 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in shares of First Watch Restaurant Group by 1.8% in the 2nd 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 in the last quarter. Institutional investors and hedge funds own 96.11% of the company's stock.

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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