First Watch Restaurant Group (NASDAQ:FWRG) Stock Rating Lowered by Wall Street Zen

Key Points

• Analysts at Wall Street Zen have downgraded First Watch Restaurant Group's stock rating from "hold" to "sell."
• Despite the downgrade, several other firms have increased their price targets for FWRG, with Raymond James setting a target price of $22.00 and Barclays reaching $21.00.
• Insider trading activity revealed that Advent International sold 4.4 million shares at an average price of $17.67, leading to a significant decrease in their ownership of the company.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

FWRG has been the subject of several other reports. Raymond James Financial increased their price objective on shares of 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. 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 research report on Thursday, July 17th. Weiss Ratings reiterated a "sell (d+)" rating on shares of First Watch Restaurant Group in a research report on Wednesday. Bank of America decreased 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 report on Friday, July 18th. Finally, Stephens increased their price objective on shares of First Watch Restaurant Group from $23.00 to $24.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat, First Watch Restaurant Group presently has a consensus rating of "Moderate Buy" and an average price target of $21.09.

First Watch Restaurant Group Trading Down 4.4%

Shares of NASDAQ FWRG opened at $15.13 on Friday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.23 and a current ratio of 0.27. First Watch Restaurant Group has a 52-week low of $12.90 and a 52-week high of $22.71. The firm has a 50 day moving average price of $17.24 and a two-hundred day moving average price of $17.03. The stock has a market cap of $923.23 million, a P/E ratio of 252.21, a price-to-earnings-growth ratio of 5.49 and a beta of 0.87.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last announced its quarterly 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). First Watch Restaurant Group had a net margin of 0.37% and a return on equity of 0.69%. The business had revenue of $307.89 million during the quarter, compared to analyst estimates of $304.94 million. During the same quarter last year, the company posted $0.14 earnings per share. The company's revenue was up 19.1% compared to the same quarter last year. First Watch Restaurant Group has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that First Watch Restaurant Group will post 0.32 EPS for the current year.

Insider Buying and Selling

In other First Watch Restaurant Group news, major shareholder International L.P. Advent sold 4,400,000 shares of the firm's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $17.67, for a total value of $77,748,000.00. Following the completion of the sale, the insider directly owned 5,289,784 shares in the company, valued at approximately $93,470,483.28. This trade represents a 45.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 6.00% of the company's stock.

Institutional Investors Weigh In On First Watch Restaurant Group

A number of large investors have recently bought and sold shares of FWRG. Fifth Third Bancorp grew its holdings in First Watch Restaurant Group by 8,815.8% in the second quarter. Fifth Third Bancorp now owns 1,694 shares of the company's stock worth $27,000 after purchasing an additional 1,675 shares during the period. First Horizon Advisors Inc. grew its holdings in First Watch Restaurant Group by 207.6% in the second quarter. First Horizon Advisors Inc. now owns 1,950 shares of the company's stock worth $31,000 after purchasing an additional 1,316 shares during the period. BNP Paribas Financial Markets grew its holdings in First Watch Restaurant Group by 61.9% in the second quarter. BNP Paribas Financial Markets now owns 4,375 shares of the company's stock worth $70,000 after purchasing an additional 1,673 shares during the period. GAMMA Investing LLC grew its holdings in First Watch Restaurant Group by 1,617.7% in the first quarter. GAMMA Investing LLC now owns 5,445 shares of the company's stock worth $91,000 after purchasing an additional 5,128 shares during the period. Finally, State of Wyoming lifted its stake in shares of First Watch Restaurant Group by 83.0% in the first quarter. State of Wyoming now owns 5,882 shares of the company's stock valued at $98,000 after buying an additional 2,668 shares in the last quarter. 96.11% of the stock is currently owned by institutional investors and hedge funds.

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.

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