First Watch Restaurant Group (NASDAQ:FWRG) Shares Down 5.8% - Here's What Happened

Key Points

• First Watch Restaurant Group's shares fell by 5.8%, trading between $17.08 and $17.20, amidst increased trading volume, suggesting market volatility.
• Analysts are divided on the stock, with a consensus "Buy" rating and a target price of $21.09, while one firm downgraded it from "Hold" to "Sell."
• In a major insider transaction, Advent International sold 5 million shares, decreasing their stake by over 34%, while various hedge funds have recently increased their holdings in the company.

First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Get Free Report) was down 5.8% on Tuesday . The company traded as low as $17.08 and last traded at $17.20. Approximately 1,296,376 shares were traded during mid-day trading, an increase of 50% from the average daily volume of 863,659 shares. The stock had previously closed at $18.26.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on FWRG shares. TD Securities restated a "buy" rating and set a $19.00 price objective on shares of First Watch Restaurant Group in a research note on Wednesday, June 4th. Wall Street Zen downgraded shares of First Watch Restaurant Group from a "hold" rating to a "sell" rating in a research report on Friday. Benchmark lifted their target price on First Watch Restaurant Group from $22.00 to $24.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Bank of America dropped their price target on First Watch Restaurant Group from $23.00 to $21.00 and set a "buy" rating on the stock in a research report on Friday, July 18th. Finally, Barclays increased their price objective on shares of First Watch Restaurant Group from $20.00 to $21.00 and gave the stock an "overweight" rating in a report on Thursday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $21.09.

First Watch Restaurant Group Trading Down 4.6%

The firm has a market capitalization of $1.06 billion, a price-to-earnings ratio of 290.17, a price-to-earnings-growth ratio of 6.61 and a beta of 0.92. The company has a quick ratio of 0.23, a current ratio of 0.27 and a debt-to-equity ratio of 0.42. The firm's 50 day moving average is $17.76 and its 200 day moving average is $17.37.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.04). The company 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 company's revenue for the quarter was up 19.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.14 earnings per share. First Watch Restaurant Group has set its FY 2025 guidance at EPS. Equities analysts forecast that First Watch Restaurant Group, Inc. will post 0.32 earnings per share for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On First Watch Restaurant Group

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in First Watch Restaurant Group by 2.0% during the first quarter. Vanguard Group Inc. now owns 2,398,180 shares of the company's stock valued at $39,930,000 after acquiring an additional 46,566 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in First Watch Restaurant Group by 51.7% during the second quarter. The Manufacturers Life Insurance Company now owns 2,335,883 shares of the company's stock valued at $37,468,000 after purchasing an additional 796,191 shares during the last quarter. Lazard Asset Management LLC raised its position in shares of First Watch Restaurant Group by 13.4% in the second quarter. Lazard Asset Management LLC now owns 2,281,137 shares of the company's stock valued at $36,589,000 after purchasing an additional 269,726 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of First Watch Restaurant Group by 1.8% in the second quarter. JPMorgan Chase & Co. now owns 2,213,754 shares of the company's stock worth $35,509,000 after buying an additional 39,648 shares during the last quarter. Finally, Granahan Investment Management LLC boosted its holdings in shares of First Watch Restaurant Group by 8.3% during the 1st quarter. Granahan Investment Management LLC now owns 1,594,267 shares of the company's stock worth $26,545,000 after buying an additional 122,657 shares during the period. 96.11% of the stock is owned by institutional investors and hedge funds.

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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