First Watch Restaurant Group (NASDAQ:FWRG) Shares Gap Up - Should You Buy?

Key Points

• First Watch Restaurant Group's stock experienced a significant increase, opening at $19.47 after closing at $17.24, with current trading around $17.89.
• Analyst ratings indicate a generally positive outlook, with eight analysts issuing a buy rating and a target price averaging $20.82.
• The company reported a 19.1% year-over-year revenue increase in its recent earnings, but missed earnings per share estimates, reporting only $0.03 EPS compared to the expected $0.09.

First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $17.24, but opened at $19.47. First Watch Restaurant Group shares last traded at $17.89, with a volume of 193,601 shares changing hands.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Guggenheim lowered their price objective on First Watch Restaurant Group from $23.00 to $22.00 and set a "buy" rating on the stock in a report on Thursday, May 8th. Bank of America lowered their price objective on First Watch Restaurant Group from $23.00 to $21.00 and set a "buy" rating on the stock in a report on Friday, July 18th. Benchmark lifted their price objective on First Watch Restaurant Group from $22.00 to $24.00 and gave the company a "buy" rating in a report on Wednesday. Raymond James Financial lifted their price objective on First Watch Restaurant Group from $21.00 to $22.00 and gave the company a "strong-buy" rating in a report on Thursday, July 17th. Finally, TD Cowen boosted their price target on First Watch Restaurant Group from $19.00 to $21.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Eight equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, First Watch Restaurant Group has a consensus rating of "Buy" and an average target price of $21.09.

First Watch Restaurant Group Price Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.27 and a current ratio of 0.31. The company has a 50-day moving average of $16.54 and a 200-day moving average of $17.78. The stock has a market capitalization of $1.08 billion, a price-to-earnings ratio of 294.87, a P/E/G ratio of 5.03 and a beta of 0.91.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.07 by ($0.04). The company had revenue of $307.89 million for the quarter, compared to analyst estimates 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 revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.14 EPS. As a group, equities research analysts expect that First Watch Restaurant Group, Inc. will post 0.32 earnings per share for the current fiscal year.

Insider Activity at First Watch Restaurant Group

In other First Watch Restaurant Group news, major shareholder International L.P. Advent sold 4,500,000 shares of the business's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $14.70, for a total value of $66,150,000.00. Following the completion of the transaction, the insider directly owned 14,689,784 shares in the company, valued at approximately $215,939,824.80. The trade was a 23.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 6.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On First Watch Restaurant Group

Institutional investors have recently added to or reduced their stakes in the company. First Horizon Advisors Inc. grew its stake in shares of First Watch Restaurant Group by 207.6% during the second quarter. First Horizon Advisors Inc. now owns 1,950 shares of the company's stock valued at $31,000 after acquiring an additional 1,316 shares in the last quarter. Versor Investments LP acquired a new stake in shares of First Watch Restaurant Group during the second quarter valued at about $757,000. Atria Investments Inc grew its stake in shares of First Watch Restaurant Group by 84.6% during the second quarter. Atria Investments Inc now owns 22,423 shares of the company's stock valued at $360,000 after acquiring an additional 10,277 shares in the last quarter. Emerald Mutual Fund Advisers Trust acquired a new stake in shares of First Watch Restaurant Group during the second quarter valued at about $4,147,000. Finally, Arkadios Wealth Advisors grew its stake in shares of First Watch Restaurant Group by 12.2% during the second quarter. Arkadios Wealth Advisors now owns 76,861 shares of the company's stock valued at $1,233,000 after acquiring an additional 8,358 shares in the last quarter. Hedge funds and other institutional investors own 96.11% of the company's stock.

First Watch Restaurant Group Company Profile

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.